Page:United States Statutes at Large Volume 110 Part 3.djvu/305

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PUBLIC LAW 104-191—AUG. 21, 1996 110 STAT. 2035 furnished as a part of (or together with) the appHcation for such pohcy. "(II) Whoever issues or sells a health insurance policy (other than a policy described in subclause (III)) to an individual described in subclause (I) and fails to furnish the appropriate disclosure statement as required under such subclause shall be fined under title 18, United States Code, or imprisoned not more than 5 years, or both, and, in addition to or in lieu of such a criminal penalty, is subject to a civil money penalty of not to exceed $25,000 (or $15,000 in the case of a person other than the issuer of the policy) for each such violation. "(Ill) A policy described in this subclause (to which subclauses (I) and (II) do not apply) is a Medicare supplemental policy or a health insurance policy identified under 60 Federal Register 30880 (June 12, 1995) as a policy not required to have a disclosure statement. "(IV) Any reference in this section to the revised NAIC model regulation (referred to in subsection (m)(l)(A)) is deemed a reference to such regulation as revised by section 171(m)(2) of the Social Security Act Amendments of 1994 (Public Law 103-432) and as modified by substituting, for the disclosure required under section 16D(2), disclosure under subclause (I) of an appropriate disclosure statement under clause (vii). "(vii) The disclosure statement described in this clause for a type of policy is the statement specified under subparagraph (D) of this paragraph (as in effect before the date of the enactment of the Health Insurance Portability and Accountability Act of 1996) for that type of policy, as revised as follows: "(I) In each statement, amend the second line to read as follows: THIS IS NOT MEDICARE SUPPLEMENT INSURANCE'. "(II) In each statement, strike the third line and insert the following: 'Some health care services paid for by Medicare may also trigger the payment of benefits under this policy.'. "(Ill) In each statement not described in subclause (V), strike the boldface matter that begins 'This insurance' and all that follows up to the next paragraph that begins 'Medicare'. "(IV) In each statement not described in subclause (V), insert before the boxed matter (that states 'Before You Buy This Insurance') the following: 'This policy must pay benefits without regard to other health benefit coverage to which you may be entitled under Medicare or other insurance.'. "(V) In a statement relating to policies providing both nursing home and non-institutional coverage, to policies providing nursing home benefits only, or policies providing home care benefits only, amend the sentence that begins 'Federal law' to read as follows: 'Federal law requires us to inform you V that in certain situations this insurance may pay for some care also covered by Medicare.'. "(viii)(I) Subject to subclause (II), nothing in this subparagraph shall restrict or preclude a State's ability to regulate health insur-