(a) Continued applicability of State law with respect to health
insurance issuers. Subject to paragraph (b) of this section and except
as provided in paragraph (c) of this section, part 7 of subtitle B of
Title I of the Act is not to be construed to supersede any provision of
State law which establishes, implements, or continues in effect any
standard or requirement solely relating to health insurance issuers in
connection with group health insurance coverage except to the extent
that such standard or requirement prevents the application of a
requirement of this part.
(b) Continued preemption with respect to group health plans. Nothing
in part 7 of subtitle B of Title I of the Act affects or modifies the
provisions of section 514 of the Act with respect to group health plans.
(c) Special rules--(1) In general. Subject to paragraph (c)(2) of
this section,
[[Page 687]]
the provisions of part 7 of subtitle B of Title I of the Act relating to
health insurance coverage offered by a health insurance issuer supersede
any provision of State law which establishes, implements, or continues
in effect a standard or requirement applicable to imposition of a
preexisting condition exclusion specifically governed by section 701
which differs from the standards or requirements specified in such
section.
(2) Exceptions. Only in relation to health insurance coverage
offered by a health insurance issuer, the provisions of this part do not
supersede any provision of State law to the extent that such provision--
(i) Shortens the period of time from the ``6-month period''
described in section 701(a)(1) of the Act and Sec. 2590.701-3(a)(2)(i)
(for purposes of identifying a preexisting condition);
(ii) Shortens the period of time from the ``12 months'' and ``18
months'' described in section 701(a)(2) of the Act and Sec. 2590.701-
3(a)(2)(ii) (for purposes of applying a preexisting condition exclusion
period);
(iii) Provides for a greater number of days than the ``63-day
period'' described in sections 701(c)(2)(A) and (d)(4)(A) of the Act and
Sec. Sec. 2590.701-3(a)(2)(iii) and 2590.701-4 (for purposes of
applying the break in coverage rules);
(iv) Provides for a greater number of days than the ``30-day
period'' described in sections 701(b)(2) and (d)(1) of the Act and Sec.
2590.701-3(b) (for purposes of the enrollment period and preexisting
condition exclusion periods for certain newborns and children that are
adopted or placed for adoption);
(v) Prohibits the imposition of any preexisting condition exclusion
in cases not described in section 701(d) of the Act or expands the
exceptions described therein;
(vi) Requires special enrollment periods in addition to those
required under section 701(f) of the Act; or
(vii) Reduces the maximum period permitted in an affiliation period
under section 701(g)(1)(B) of the Act.
(d) Definitions--(1) State law. For purposes of this section the
term State law includes all laws, decisions, rules, regulations, or
other State action having the effect of law, of any State. A law of the
United States applicable only to the District of Columbia is treated as
a State law rather than a law of the United States.
(2) State. For purposes of this section the term State includes a
State (as defined in Sec. 2590.701-2), any political subdivisions of a
State, or any agency or instrumentality of either.
[69 FR 78778, Dec. 30, 2004; 70 FR 21147, Apr. 25, 2005] 
