Following up on Ms. Langer's message, I note that the author's point
concerning the relationship between the ERISA and HIPAA preemption
schemes is expressly supported by HHS's preamble to the 12/28/2000 final
privacy rule. However, I do not share Ms. Langer's opinion that few if
any state laws will relate to plans so as to be preempted by ERISA
because I do understand that these state laws are directed at record
keepers, such as plans and providers.  Furthermore ERISA fiduciaries
currently have an obligation to safeguard PHI from inappropriate
disclosure under the general fiduciary responsibility standards found in
ERISA � 404, 29 U.S.C. � 1104.  In addition, these state privacy laws
would disrupt the uniform national administration of ERISA plans that
Congress intended ERISA preemption to preserve according to the U.S.
Supreme Court's March 21, 2001, opinion in Egelhoff v. Egelhoff (holding
that a state beneficiary designation statute has a prohibited connection
with ERISA plans because it interferes with nationally uniform plan
administration.)  This opinion can be accessed at the following link:
http://supct.law.cornell.edu/supct/html/99-1529.ZS.html

In view of the Supreme Court's recent Moran opinion, perhaps the more
salient issue is whether policyholder privacy rules codified in state
insurance codes are preserved from ERISA preemption under the insurance
law exclusion from ERISA preemption. 

In any event, Ms. Langer's point about the need to carefully track the
judicial developments in this area is well taken, and I therefore direct
other attorneys and HIPAAholics to a May 28, 2002, opinion of the U.S.
Court of Appeals for the Fourth Circuit (whose jurisdiction includes
Maryland, Virginia, West VA, and the Carolinas) in  Darcangelo v.
Verizon, No. 01-1679.  You can access the opinion by following this
link:
http://pacer.ca4.uscourts.gov/cgi-bin/getopn.pl?OPINION=011679.P  

David Ermer

Gordon & Barnett
1133 21st St., NW, Suite 450
Washington, DC 20036
202-833-3400 ext 3009 (voice)
202-223-0120 (fax)

>>> "Langer, Judi" <[EMAIL PROTECTED]> 07/09/02 11:08AM >>>
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
E-mail:  [EMAIL PROTECTED] 

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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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