Q & A – What plans do not fall under HIPAA?

Q: What plans do not fall under HIPAA?

A: HIPAA portability does not apply to small group health plans. Small plans are plans that have fewer than two participants who are current employees on the first day of the plan year. Small plans also include retiree only plans. The following benefits are not considered group health plans and thus are not covered under HIPAA portability:
• Accident insurance;
• Disability income insurance;
• Coverage issued as a supplement to liability insurance;
• Liability insurance, including general liability and auto liability insurance;
• Workers’ compensation;
• Credit-only insurance; and
• Coverage for on-site medical clinics.

HIPAA portability does not apply benefits that are offered separately or not integral to the plan. Benefits are not integral to the plan if a separate premium or contribution is required for the coverage and the participant has the right not to elect the coverage. For example, most limited scope dental or vision and long-term care benefits would not be integral to a plan, and therefore would not be covered by HIPAA portability.