State RegulationsPA specificDifficulty 2/5
A colleague studying for the Pennsylvania examination states: 'The reference 40 P.S. § 981-1 is the federal HIPAA law as adopted in Pennsylvania.' How should the colleague's statement be characterized?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
40 P.S. § 981-1 begins Pennsylvania's continuation act — the state's mini-COBRA framework for continuing group health coverage, with conversion rights addressed under 40 P.S. § 981-9. It is not the federal HIPAA statute; federal portability and privacy law is a separate body of federal law that Pennsylvania's act does not become. The outline's grouping of the two can mislead candidates, which is exactly why the distinction is tested by the Pennsylvania Insurance Department's framework.
Why the other options are wrong
- A) Nothing about 40 P.S. § 981-1 is a verbatim restatement of a federal rule; it is Pennsylvania's own continuation legislation.
- B) The continuation act is Pennsylvania law administered under Pennsylvania authority; characterizing it as federally administered misses the point.
- C) Medicare supplement open enrollment is a distinct subject; 40 P.S. § 981-1 concerns continuation of group health coverage.
Memory hook
981-1 = Pennsylvania's continuation law, not HIPAA in a state costume.