ERISA 701(f) and 711 (29 U.S.C. 1181(f), 1185)

HIPAA Special Enrollment and the Newborns’ Act: An Employer Guide

Two federal rules in ERISA Part 7 decide when an employee can join your health plan outside open enrollment and how long a new mother and baby can stay in the hospital. Here is what each rule requires and what the plan document should say.

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What It Requires

Five Topics, One Plan.

General information, not legal advice. Each card opens a page on one part of the two rules.

Special Enrollment After Loss of Other Coverage

Which losses of other coverage open a special enrollment right, and which do not.

Special Enrollment for Marriage, Birth, and Adoption

New spouses, newborns and adopted children, and when their coverage starts.

Special Enrollment Windows and Effective Dates

The 30-day floor, the 60-day public program rights and the coverage start dates.

Newborns’ Act 48 and 96 Hour Hospital Stay Rules

The childbirth stay minimums, the cost-sharing limit and the no-authorization rule.

Special Enrollment and Newborns’ Act Notices

The notice at the time of offer, the hospital-stay statement and the plan document terms.

In Practice

Two Rules, Two Jobs.

Special enrollment is found in ERISA section 701(f), 29 U.S.C. 1181(f), and its regulation, 29 CFR 2590.701-6. It protects people who turned down your plan at first and then hit a life event: they lost other coverage, or they gained a spouse, a newborn or an adopted child. Without it, those people would wait for the next open enrollment.

The Newborns’ and Mothers’ Health Protection Act is ERISA section 711, 29 U.S.C. 1185, with its regulation at 29 CFR 2590.711. It does not touch eligibility. It limits how far a plan may cut back benefits for a hospital stay tied to childbirth: no less than 48 hours after a vaginal delivery and no less than 96 hours after a cesarean section.

They sit together because both come from the same part of ERISA and both show up in the same places: the plan document, the summary plan description, the enrollment materials and the carrier contract. A gap in one is usually a gap in the other.

Reading The Statute

The Numbers To Know.

For loss of other coverage and for new dependents, the statute sets a floor of 30 days for the request. A plan can allow longer, never shorter. Special enrollment tied to Medicaid and the Children’s Health Insurance Program carries a 60-day request period, which our windows page covers as a pointer only.

For the hospital stay, the numbers are 48 and 96 hours, counted from the delivery, or from admission when the delivery happens outside a hospital. The early-discharge exception requires the attending provider to decide after consulting the mother.

Coverage start dates are fixed too. A birth is covered from the date of birth. An adoption or placement is covered from that date. A marriage or a loss of other coverage is covered no later than the first day of the first calendar month after the plan receives the request.

Watch Outs

Where Employers Slip.

Treating a loss of coverage for unpaid premiums as a qualifying event. The regulation says a loss caused by failing to pay premiums on time does not qualify, and neither does a termination for cause such as fraud.

Asking for more than a written statement. When a plan requires an employee who declines coverage to say in writing that other coverage was the reason, the regulation says the plan cannot demand anything more, such as notarization.

Treating a special enrollee as a late enrollee. The regulation says a special enrollee must be offered every benefit package available to similarly situated people who enroll when first eligible, at no higher charge.

Requiring a provider to get plan approval before prescribing a 48 or 96 hour stay. The statute bars that.

First Steps

What To Do This Month.

Read the eligibility and enrollment sections of your plan document and compare them to the five topics above. Look for the length of the request window, the effective dates and any written-statement requirement.

Check that the notice of special enrollment rights goes to employees at or before the time they are first offered coverage, as the regulation requires. Then confirm the SPD carries the childbirth hospital stay statement if the plan covers maternity or newborn care.

Ask your carrier or third-party administrator to confirm in writing that its claim rules do not require authorization for the minimum stay. Keep that confirmation with your compliance file.

Related Rules And Tools

Related Rules and Tools.

ERISA Part 7 Group Health Plan Requirements Checklist

The wider checklist of federal group health plan rules this topic sits inside.

A Compliance Calendar for Your Plan

A plan-year view of the filings, notices and deadlines an employer plan carries.

Michelle’s Law and Dependent Student Coverage

The separate rule for dependent students who take a medically necessary leave.

Sources

Laws and Sources

ERISA section 701(f), 29 U.S.C. 1181(f): special enrollment periods for loss of other coverage, new dependents, and Medicaid and CHIP.

ERISA section 711, 29 U.S.C. 1185: standards relating to benefits for mothers and newborns.

29 CFR 2590.701-6: the regulation on special enrollment periods, notice and effective dates.

29 CFR 2590.711: the regulation on benefits for mothers and newborns.

29 CFR 2520.102-3(u): the summary plan description content rule for the childbirth hospital stay statement.

General information, not legal or tax advice.

Common Questions

Quick Answers.

Short replies on this page’s topic, each tied to a fuller guide.

What is a HIPAA special enrollment period?

A window outside open enrollment when an eligible employee or dependent who declined coverage can join the plan after a qualifying event, such as losing other coverage or gaining a spouse, newborn or adopted child (ERISA section 701(f)).

How long must the special enrollment request period be?

At least 30 days for loss of other coverage and for new dependents. Special enrollment tied to Medicaid or CHIP uses a 60-day request period.

Does losing coverage for unpaid premiums qualify?

No. Under 29 CFR 2590.701-6, a loss caused by failing to pay premiums on time does not qualify, and neither does a termination for cause.

What does the Newborns’ and Mothers’ Health Protection Act require?

A plan that pays for childbirth hospital stays may not limit benefits to less than 48 hours after a vaginal delivery or 96 hours after a cesarean section, and may not require a provider to get authorization to prescribe that stay.

Where must these rights appear in plan materials?

Notice of special enrollment rights must reach employees at or before they are first offered coverage, and a plan that covers maternity or newborn care must describe the childbirth stay limits in its summary plan description.

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