[Federal Register Volume 66, Number 5 (Monday, January 8, 2001)]
[Proposed Rules]
[Pages 1435-1437]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-108]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 54

[REG-114082-00]
RIN 1545-AY32


HIPAA Nondiscrimination

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations.

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SUMMARY: Elsewhere in this issue of the Federal Register, the IRS is 
issuing temporary and final regulations governing the provisions 
prohibiting discrimination based on a health factor for group health 
plans. The IRS is issuing the temporary and final regulations at the 
same time that the Pension and Welfare Benefits Administration of the 
U.S. Department of Labor and the Health Care Financing Administration 
of the U.S. Department of Health and Human Services are issuing 
substantially similar interim final regulations governing the 
provisions prohibiting discrimination based on a health factor for 
group health plans and issuers of health insurance coverage offered in 
connection with a group health plan under the Employee Retirement 
Income Security Act of 1974 and the Public Health Service Act. The 
temporary regulations provide guidance to employers and group health 
plans relating to the group health plan nondiscrimination requirements. 
The text of those temporary regulations also serves as the text of 
these proposed regulations.

DATES: Written comments and requests for a public hearing must be 
received by April 9, 2001.

[[Page 1436]]


ADDRESSES: Send submissions to: CC:M&SP:RU (REG-114082-00), room 5226, 
Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, 
DC 20044. Submissions may be hand-delivered to: CC:M&SP:RU (REG-114082-
00), room 5226, Internal Revenue Service, 1111 Constitution Avenue, 
NW., Washington, DC. Alternatively, taxpayers may submit comments 
electronically via the Internet by selecting the ``Tax Regs'' option on 
the IRS Home Page, or by submitting comments directly to the IRS 
Internet site at: http://www.irs.gov/tax_regs/regslist.html.

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Russ 
Weinheimer at 202-622-6080; concerning submissions of comments or 
requests for a hearing, Sonya Cruse at 202-622-7190 (not toll-free 
numbers).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    The collection of information referenced in this notice of proposed 
rulemaking has been submitted to the Office of Management and Budget 
for review in accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507(d)).
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a valid 
control number assigned by the Office of Management and Budget.
    The collections of information are in Sec. 54.9802-1T (see the 
temporary regulations published elsewhere in this issue of the Federal 
Register). The collections of information are required so that 
individuals denied enrollment in a group health plan based on one or 
more health factors will be apprised of their right to enroll in the 
plan without regard to their health. The likely respondents are 
business or other for-profit institutions, nonprofit institutions, 
small businesses or organizations, and Taft-Hartley trusts. Responses 
to this collection of information are required of plans that have 
denied enrollment to individuals based on one or more health factors.
    Books or records relating to a collection of information must be 
retained as long as their contents may become material in the 
administration of any internal revenue law. Generally tax returns and 
tax return information are confidential, as required by 26 U.S.C. 6103.
    Comments on the collection of information should be sent to the 
Office of Management and Budget, Attn: Desk Officer for the Department 
of the Treasury, Office of Information and Regulatory Affairs, 
Washington, DC 20503, with copies to the Internal Revenue Service, 
Attn: IRS Reports Clearance Officer, W:CAR:MP:FP:S:O, Washington, DC 
20224. Comments on the collection of information should be received by 
April 9, 2001. Comments are specifically requested concerning:
     Whether the proposed collection of information is 
necessary for the proper performance of the functions of the Internal 
Revenue Service, including whether the information will have practical 
utility;
     The accuracy of the estimated burden associated with the 
proposed collection of information (see the preamble to the temporary 
regulations published elsewhere in this issue of the Federal Register);
     How to enhance the quality, utility, and clarity of the 
information to be collected;
     How to minimize the burden of complying with the proposed 
collection of information, including the application of automated 
collection techniques or other forms of information technology; and
     Estimates of capital or start-up costs and costs of 
operation, maintenance, and purchase of services to provide 
information.

Background

    The temporary regulations published elsewhere in this issue of the 
Federal Register add a new Sec. 54.9802-1T to the Miscellaneous Excise 
Tax Regulations.\1\ When these proposed regulations are published as 
final regulations, they will supplement the final regulations in 
Sec. 54.9802-1 being published elsewhere in this issue of the Federal 
Register. The proposed, temporary, and final regulations are being 
published as part of a joint rulemaking with the Department of Labor 
and the Department of Health and Human Services (the joint rulemaking).
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    \1\ A previous Sec. 54.9802-1T was published in the Federal 
Register on April 8, 1997. By operation of section 7805(e) of the 
Internal Revenue Code, the previous Sec. 54.9802-1T expired on April 
8, 2000. Proposed regulations containing the same text as previous 
Sec. 54.9802-1T were also published on April 8, 1997, and final 
regulations based on those proposed regulations are being published 
elsewhere in this issue of the Federal Register as Sec. 54.9802-1. 
The new Sec. 54.9802-1T being published elsewhere in this issue of 
the Federal Register consists almost entirely of new guidance not 
contained in the previous Sec. 54.9802-1T.
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Special Analyses

    This regulation is not subject to the Unfunded Mandates Reform Act 
of 1995 because the regulation is an interpretive regulation. It has 
also been determined that section 553(b) of the Administrative 
Procedure Act (5 U.S.C. chapter 5) does not apply to this regulation. 
For further information and for analyses relating to the joint 
rulemaking, see the preamble to the joint rulemaking. Pursuant to 
section 7805(f) of the Internal Revenue Code, this notice of proposed 
rulemaking will be submitted to the Chief Counsel for Advocacy of the 
Small Business Administration for comment on its impact on small 
business.

Comments and Requests for a Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any written comments (a signed original 
and eight (8) copies) that are submitted timely to the IRS. Comments 
are specifically requested on the clarity of the proposed regulations 
and how they may be made easier to understand. All comments will be 
available for public inspection and copying. A public hearing may be 
scheduled if requested in writing by a person that timely submits 
written comments. If a public hearing is scheduled, notice of the date, 
time, and place for the hearing will be published in the Federal 
Register.

Drafting Information

    The principal author of these proposed regulations is Russ 
Weinheimer, Office of the Operating Division Counsel/Associate Chief 
Counsel (Tax Exempt and Government Entities), IRS. However, other 
personnel from the IRS and Treasury Department participated in their 
development. The proposed regulations, as well as the temporary 
regulations, have been developed in coordination with personnel from 
the U.S. Department of Labor and the U.S. Department of Health and 
Human Services.

List of Subjects in 26 CFR Part 54

    Excise taxes, Health insurance, Pensions, Reporting and 
recordkeeping requirements.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 54 is proposed to be amended as follows:

PART 54--PENSION EXCISE TAXES

    Paragraph 1. The authority citation for part 54 continues to read 
in part as follows:

    Authority: 26 U.S.C. 7805 * * *
    Par. 2. Section 54.9802-1 is amended to read as follows:

[[Page 1437]]

Sec. 54.9802-1  Prohibiting discrimination against participants and 
beneficiaries based on a health factor.

    [The text of this proposed amendments to this section is the same 
as the text of Sec. 54.9802-1T published elsewhere in this issue of the 
Federal Register].

Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
[FR Doc. 01-108 Filed 1-5-01; 8:45 am]
BILLING CODE 4830-01-P