article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Treatment of Children's Deformities Act of 1998''. SEC. 2. COVERAGE OF MINOR CHILD'S CONGENITAL OR DEVELOPMENTAL DEFORMITY OR DISORDER. (a) Group Health Plans.-- (1) Public health service act amendments.--(A) Subpart 2 of part A of title XXVII of the Public Health Service Act, as amended by section 703(a) of Public Law 104-204, is amended by adding at the end the following new section: ``SEC. 2706. STANDARDS RELATING TO BENEFITS FOR MINOR CHILD'S CONGENITAL OR DEVELOPMENTAL DEFORMITY OR DISORDER. ``(a) Requirements for Reconstructive Surgery.-- ``(1) In general.--A group health plan, and a health insurance issuer offering group health insurance coverage, that provides coverage for surgical benefits shall provide coverage for outpatient and inpatient diagnosis and treatment of a minor child's congenital or developmental deformity, disease, or injury. A minor child shall include any individual through 21 years of age. ``(2) Requirements.--Any coverage provided under paragraph (1) shall be subject to pre-authorization or pre-certification as required by the plan or issuer, and such coverage shall include any surgical treatment which, in the opinion of the treating physician, is medically necessary to approximate a normal appearance. ``(3) Treatment defined.-- ``(A) In general.--In this section, the term `treatment' includes reconstructive surgical procedures (procedures that are generally performed to improve function, but may also be performed to approximate a normal appearance) that are performed on abnormal structures of the body caused by congenital defects, developmental abnormalities, trauma, infection, tumors, or disease, including-- ``(i) procedures that do not materially affect the function of the body part being treated; and ``(ii) procedures for secondary conditions and follow-up treatment. ``(B) Exception.--Such term does not include cosmetic surgery performed to reshape normal structures of the body to improve appearance or self-esteem. ``(b) Notice.--A group health plan under this part shall comply with the notice requirement under section 713(b) of the Employee Retirement Income Security Act of 1974 with respect to the requirements of this section as if such section applied to such plan.''. (B) Section 2723(c) of such Act (42 U.S.C. 300gg-23(c)), as amended by section 604(b)(2) of Public Law 104-204, is amended by striking ``section 2704'' and inserting ``sections 2704 and 2706''. (2) ERISA amendments.--(A) Subpart B of part 7 of subtitle B of title I of the Employee Retirement Income Security Act of 1974, as amended by section 702(a) of Public Law 104-204, is amended by adding at the end the following new section: ``SEC. 713. STANDARDS RELATING TO BENEFITS FOR MINOR CHILD'S CONGENITAL OR DEVELOPMENTAL DEFORMITY OR DISORDER. ``(a) Requirements for Reconstructive Surgery.-- ``(1) In general.--A group health plan, and a health insurance issuer offering group health insurance coverage, that provides coverage for surgical benefits shall provide coverage for outpatient and inpatient diagnosis and treatment of a minor child's congenital or developmental deformity, disease, or injury. A minor child shall include any individual through 21 years of age. ``(2) Requirements.--Any coverage provided under paragraph (1) shall be subject to pre-authorization or pre-certification as required by the plan or issuer, and such coverage shall include any surgical treatment which, in the opinion of the treating physician, is medically necessary to approximate a normal appearance. ``(3) Treatment defined.-- ``(A) In general.--In this section, the term `treatment' includes reconstructive surgical procedures (procedures that are generally performed to improve function, but may also be performed to approximate a normal appearance) that are performed on abnormal structures of the body caused by congenital defects, developmental abnormalities, trauma, infection, tumors, or disease, including-- ``(i) procedures that do not materially affect the function of the body part being treated; and ``(ii) procedures for secondary conditions and follow-up treatment. ``(B) Exception.--Such term does not include cosmetic surgery performed to reshape normal structures of the body to improve appearance or self-esteem. ``(b) Notice Under Group Health Plan.--The imposition of the requirements of this section shall be treated as a material modification in the terms of the plan described in section 102(a)(1), for purposes of assuring notice of such requirements under the plan; except that the summary description required to be provided under the last sentence of section 104(b)(1) with respect to such modification shall be provided by not later than 60 days after the first day of the first plan year in which such requirements apply.''. (B) Section 731(c) of such Act (29 U.S.C. 1191(c)), as amended by section 603(b)(1) of Public Law 104-204, is amended by striking ``section 711'' and inserting ``sections 711 and 713''. (C) Section 732(a) of such Act (29 U.S.C. 1191a(a)), as amended by section 603(b)(2) of Public Law 104-204, is amended by striking ``section 711'' and inserting ``sections 711 and 713''. (D) The table of contents in section 1 of such Act is amended by inserting after the item relating to section 712 the following new item: ``Sec. 713. Standards relating to benefits for minor child's congenital or developmental deformity or disorder.''. (3) Internal revenue code amendments.--Subchapter B of chapter 100 of the Internal Revenue Code of 1986 (as amended by section 1531(a) of the Taxpayer Relief Act of 1997) is amended-- (A) in the table of sections, by inserting after the item relating to section 9812 the following new item: ``Sec. 9813. Standards relating to benefits for minor child's congenital or developmental deformity or disorder.''; and (B) by inserting after section 9812 the following: ``SEC. 9813. STANDARDS RELATING TO BENEFITS FOR MINOR CHILD'S CONGENITAL OR DEVELOPMENTAL DEFORMITY OR DISORDER. ``(a) Requirements for Reconstructive Surgery.-- ``(1) In general.--A group health plan, and a health insurance issuer offering group health insurance coverage, that provides coverage for surgical benefits shall provide coverage for outpatient and inpatient diagnosis and treatment of a minor child's congenital or developmental deformity, disease, or injury. A minor child shall include any individual through 21 years of age. ``(2) Requirements.--Any coverage provided under paragraph (1) shall be subject to pre-authorization or pre-certification as required by the plan or issuer, and such coverage shall include any surgical treatment which, in the opinion of the treating physician, is medically necessary to approximate a normal appearance. ``(3) Treatment defined.-- ``(A) In general.--In this section, the term `treatment' includes reconstructive surgical procedures (procedures that are generally performed to improve function, but may also be performed to approximate a normal appearance) that are performed on abnormal structures of the body caused by congenital defects, developmental abnormalities, trauma, infection, tumors, or disease, including-- ``(i) procedures that do not materially affect the function of the body part being treated; and ``(ii) procedures for secondary conditions and follow-up treatment. ``(B) Exception.--Such term does not include cosmetic surgery performed to reshape normal structures of the body to improve appearance or self-esteem.''. (b) Individual Health Insurance.--(1) Part B of title XXVII of the Public Health Service Act, as amended by section 605(a) of Public Law 104-204, is amended by inserting after section 2751 the following new section: ``SEC. 2752. STANDARDS RELATING TO BENEFITS FOR MINOR CHILD'S CONGENITAL OR DEVELOPMENTAL DEFORMITY OR DISORDER. ``(a) Requirements for Reconstructive Surgery.-- ``(1) In general.--A group health plan, and a health insurance issuer offering group health insurance coverage, that provides coverage for surgical benefits shall provide coverage for outpatient and inpatient diagnosis and treatment of a minor child's congenital or developmental deformity, disease, or injury. A minor child shall include any individual through 21 years of age. ``(2) Requirements.--Any coverage provided under paragraph (1) shall be subject to pre-authorization or pre-certification as required by the plan or issuer, and such coverage shall include any surgical treatment which, in the opinion of the treating physician, is medically necessary to approximate a normal appearance. ``(3) Treatment defined.-- ``(A) In general.--In this section, the term `treatment' includes reconstructive surgical procedures (procedures that are generally performed to improve function, but may also be performed to approximate a normal appearance) that are performed on abnormal structures of the body caused by congenital defects, developmental abnormalities, trauma, infection, tumors, or disease, including-- ``(i) procedures that do not materially affect the function of the body part being treated; and ``(ii) procedures for secondary conditions and follow-up treatment. ``(B) Exception.--Such term does not include cosmetic surgery performed to reshape normal structures of the body to improve appearance or self-esteem. ``(b) Notice.--A health insurance issuer under this part shall comply with the notice requirement under section 713(b) of the Employee Retirement Income Security Act of 1974 with respect to the requirements referred to in subsection (a) as if such section applied to such issuer and such issuer were a group health plan.''. (2) Section 2762(b)(2) of such Act (42 U.S.C. 300gg-62(b)(2)), as added by section 605(b)(3)(B) of Public Law 104-204, is amended by striking ``section 2751'' and inserting ``sections 2751 and 2752''. (c) Effective Dates.--(1) The amendments made by subsection (a) shall apply with respect to group health plans for plan years beginning on or after January 1, 1999. (2) The amendment made by subsection (b) shall apply with respect to health insurance coverage offered, sold, issued, renewed, in effect, or operated in the individual market on or after such date. (d) Coordinated Regulations.--Section 104(1) of Health Insurance Portability and Accountability Act of 1996 is amended by striking ``this subtitle (and the amendments made by this subtitle and section 401)'' and inserting ``the provisions of part 7 of subtitle B of title I of the Employee Retirement Income Security Act of 1974, the provisions of parts A and C of title XXVII of the Public Health Service Act, and chapter 100 of the Internal Revenue Code of 1986''.
summary: Treatment of Children's Deformities Act of 1998 - Amends the Public Health Service Act, the Employee Retirement Income Security Act of 1974 (ERISA), and the Internal Revenue Code to set standards requiring that group and individual health insurance coverage and group health plans provide coverage for treatment of a minor child's congenital or developmental deformity or disorder due to trauma, infection, tumor, or disease.