HR 1424 PCS
‘‘(III) for both the plan year 
upon which a cost exemption is sought 
and the year prior, the actual total 
costs of coverage with respect to men-
tal health and substance-related dis-
order benefits under the plan. 
‘‘(iii) CONFIDENTIALITY.—A notifica-
tion under clause (i) shall be confidential. 
The Department of Labor shall make 
available, upon request to the appropriate 
committees of Congress and on not more 
than an annual basis, an anonymous 
itemization of such notifications, that in-
cludes— 
‘‘(I) a breakdown of States by 
the size and any type of employers 
submitting such notification; and 
‘‘(II) a summary of the data re-
ceived under clause (ii). 
‘‘(G) NO
IMPACT
ON
APPLICATION
OF 
STATE LAW.—The fact that a plan or coverage 
is exempt from the provisions of this section 
under subparagraph (A) shall not affect the ap-
plication of State law to such plan or coverage. 
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‘‘(H) CONSTRUCTION.—Nothing in this 
paragraph shall be construed as preventing a 
group health plan (or health insurance coverage 
offered in connection with such a plan) from 
complying with the provisions of this section 
notwithstanding that the plan or coverage is not 
required to comply with such provisions due to 
the application of subparagraph (A).’’. 
(f) CHANGE IN EXCLUSION FOR SMALLEST EMPLOY-
ERS.—Subsection (c)(1)(B) of such section is amended— 
(1) by inserting ‘‘(or 1 in the case of an em-
ployer residing in a State that permits small groups 
to include a single individual)’’ after ‘‘at least 2’’ the 
first place it appears; and 
(2) by striking ‘‘and who employs at least 2 em-
ployees on the first day of the plan year’’. 
(g) ELIMINATION OF SUNSET PROVISION.—Such sec-
tion is amended by striking subsection (f). 
(h) CLARIFICATION
REGARDING
PREEMPTION.— 
Such section is further amended by inserting after sub-
section (e) the following new subsection: 
‘‘(f) PREEMPTION, RELATION TO STATE LAWS.— 
‘‘(1) IN GENERAL.—This part shall not be con-
strued to supersede any provision of State law which 
establishes, implements, or continues in effect any 
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consumer protections, benefits, methods of access to 
benefits, rights, external review programs, or rem-
edies solely relating to health insurance issuers in 
connection with group health insurance coverage (in-
cluding benefit mandates or regulation of group 
health plans of 50 or fewer employees) except to the 
extent that such provision prevents the application 
of a requirement of this part. 
‘‘(2) CONTINUED PREEMPTION WITH RESPECT 
TO GROUP HEALTH PLANS.—Nothing in this section 
shall be construed to affect or modify the provisions 
of section 514 with respect to group health plans. 
‘‘(3) OTHER STATE LAWS.—Nothing in this sec-
tion shall be construed to exempt or relieve any per-
son from any laws of any State not solely related to 
health insurance issuers in connection with group 
health coverage insofar as they may now or here-
after relate to insurance, health plans, or health cov-
erage.’’. 
(i) CONFORMING AMENDMENTS TO HEADING.— 
(1) IN GENERAL.—The heading of such section 
is amended to read as follows: 
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