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December 7, 2007
 U.S. Department of Labor Field Assistance Bulletin No. 2007-04:
Supplemental Health Insurance Coverage as Excepted Benefits Under HIPAA &
Related Legislation
The U.S. Department of Labor (DOL) Employee Benefits Security
Administration closed a loophole and clarified that supplemental wellness
plans that set biometric targets as a basis for employee member rewards
or penalties must meet four additional requirements to be exempt from
Health Insurance Portability and Accountability Act (HIPAA) regulations.
Such plans must not be linked to the primary health plan; they must cover
only gaps in coverage; the cost of coverage must not exceed 15% of the
cost of the primary coverage; and must not differentiate among plan
members in eligibility, benefits, or premiums.
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