In principle, I agree with the author's point. Practically speaking, though,
I suspect there will be few if any state privacy laws that sufficiently
"relate to" employee welfare benefit plans so as to be preempted by ERISA.
How strictly "relate to" is construed will, of course, depend on the case
law in the federal circuit courts of appeal.  Judi

Judith A. Langer, Attorney
HIPAA Project Director
Privacy Official
Cobalt Corporation
Legal Department
401 W. Michigan Street, C-10
Milwaukee, WI  53203
Phone (414)-226-6062
Fax (414)-226-6229
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-----Original Message-----
From: Tomak-Maurer, Tonya (Chicago)
[mailto:[EMAIL PROTECTED]]
Sent: Sunday, July 07, 2002 10:36 AM
To: '[EMAIL PROTECTED]'
Subject: State Preemption and ERISA


Anyone have any thoughts on HIPAA state pre-emption and ERISA.  I found the
below paragraph in a published article...any concurring or differing
opinions.

"In general, HIPAA preempts all state laws that establish privacy standards
that are contrary to the Privacy Rule.  However, state laws that are deemed
to be "more stringent" than the Privacy Rule are excepted from preemption by
HIPAA.  Therefore, the Privacy Rule establishes a "federal floor" approach
whereby many state privacy laws will continue in effect.  However, HIPAA
does not change the traditional preemption analysis under ERISA, whereby any
state law that "relates to" an employee benefit plan is preempted by ERISA,
except for insurance regulation.  Therefore, self-insured health plans
arguably would continue to be exempt from state privacy laws under current
ERISA preemption analysis leaving only insured health plans and health plans
exempt from ERISA (such as church and governmental plans) to be subject to
state laws that are more stringent than the Privacy Rule."

Thanks,
Tonya

W: 312.704.2494

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