Sec. 623. Enforcement provisions relating to association health plans
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/bill/113/hr/3622/ih/section-623A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 501 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1131 ) is amended— by inserting
(a)after Sec. 501. ; and by adding at the end the following new subsection: Any person who willfully falsely represents, to any employee, any employee’s beneficiary, any employer, the Secretary, or any State, a plan or other arrangement established or maintained for the purpose of offering or providing any benefit described in section 3(1) to employees or their beneficiaries as— being an association health plan which has been certified under part 8; having been established or maintained under or pursuant to one or more collective bargaining agreements which are reached pursuant to collective bargaining described in section 8(d) of the National Labor Relations Act ( 29 U.S.C. 158(d) ) or paragraph fourth of section 2 of the Railway Labor Act ( 45 U.S.C. 152 , paragraph fourth) or which are reached pursuant to labor-management negotiations under similar provisions of State public employee relations laws; or being a plan or arrangement described in section 3(40)(A)(i), shall, upon conviction, be imprisoned not more than 5 years, be fined under title 18, United States Code, or both. . Section 502 of such Act ( 29 U.S.C. 1132 ) is amended by adding at the end the following new subsection: Subject to paragraph (2), upon application by the Secretary showing the operation, promotion, or marketing of an association health plan (or similar arrangement providing benefits consisting of medical care (as defined in section 733(a)(2))) that— is not certified under part 8, is subject under section 514(b)(6) to the insurance laws of any State in which the plan or arrangement offers or provides benefits, and is not licensed, registered, or otherwise approved under the insurance laws of such State; or is an association health plan certified under part 8 and is not operating in accordance with the requirements under part 8 for such certification, a district court of the United States shall enter an order requiring that the plan or arrangement cease activities. Paragraph
(1)shall not apply in the case of an association health plan or other arrangement if the plan or arrangement shows that— all benefits under it referred to in paragraph
(1)consist of health insurance coverage; and with respect to each State in which the plan or arrangement offers or provides benefits, the plan or arrangement is operating in accordance with applicable State laws that are not superseded under section 514. The court may grant such additional equitable relief, including any relief available under this title, as it deems necessary to protect the interests of the public and of persons having claims for benefits against the plan. . Section 503 of such Act ( 29 U.S.C. 1133 ) is amended by inserting
(a)before In general .— In accordance , and by adding at the end the following new subsection: The terms of each association health plan which is or has been certified under part 8 shall require the board of trustees or the named fiduciary (as applicable) to ensure that the requirements of this section are met in connection with claims filed under the plan. .
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Sec. 623
Enforcement provisions relating to association health plans
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