serve as an employee or paid consultant to the 
HealthMart, but may receive reasonable reimburse-
ment for travel expenses for purposes of attending 
meetings of the board or committees thereof. 
‘‘(2) FOR BOARDS OF DIRECTORS OR EMPLOY-
EES.—An individual is not eligible to serve in a paid 
or unpaid capacity on the board of directors of a 
HealthMart or as an employee of the HealthMart, if 
the individual is employed by, represents in any ca-
pacity, owns, or controls any ownership interest in 
an organization from whom the HealthMart receives 
contributions, grants, or other funds not connected 
with 
a 
contract 
for 
coverage 
through 
the 
HealthMart. 
‘‘(3) 
EMPLOYMENT
AND
EMPLOYEE
REP-
RESENTATIVES.— 
‘‘(A) IN GENERAL.—An individual who is 
serving on a board of directors of a HealthMart 
as a representative described in subparagraph 
(A) or (B) of section 2901(a)(1) shall not be 
employed by or affiliated with a health insur-
ance issuer or be licensed as or employed by or 
affiliated with a health care provider. 
‘‘(B) CONSTRUCTION.—For purposes of 
subparagraph (A), the term ‘affiliated’ does not
include membership in a health benefits plan or 
the obtaining of health benefits coverage offered 
by a health insurance issuer. 
‘‘(e) CONSTRUCTION.— 
‘‘(1) 
NETWORK
OF
AFFILIATED 
HEALTHMARTS.—Nothing in this section shall be 
construed as preventing one or more HealthMarts 
serving different areas (whether or not contiguous) 
from providing for some or all of the following 
(through a single administrative organization or oth-
erwise): 
‘‘(A) Coordinating the offering of the same 
or similar health benefits coverage in different 
areas served by the different HealthMarts. 
‘‘(B) Providing for crediting of deductibles 
and other cost-sharing for individuals who are 
provided health benefits coverage through the 
HealthMarts 
(or 
affiliated 
HealthMarts) 
after— 
‘‘(i) a change of employers through 
which the coverage is provided, or 
‘‘(ii) a change in place of employment 
to an area not served by the previous 
HealthMart.
‘‘(2) PERMITTING
HEALTHMARTS
TO
ADJUST 
DISTRIBUTIONS AMONG ISSUERS TO REFLECT REL-
ATIVE RISK OF ENROLLEES.—Nothing in this sec-
tion shall be construed as precluding a HealthMart 
from providing for adjustments in amounts distrib-
uted among the health insurance issuers offering 
health benefits coverage through the HealthMart 
based on factors such as the relative health care risk 
of members enrolled under the coverage offered by 
the different issuers. 
‘‘SEC. 2902. APPLICATION OF CERTAIN LAWS AND REQUIRE-
MENTS. 
‘‘(a) AUTHORITY OF STATES.—Nothing in this sec-
tion shall be construed as preempting State laws relating 
to the following: 
‘‘(1) The regulation of underwriters of health 
coverage, including licensure and solvency require-
ments. 
‘‘(2) The application of premium taxes and re-
quired payments for guaranty funds or for contribu-
tions to high-risk pools. 
‘‘(3) The application of fair marketing require-
ments and other consumer protections (other than 
those specifically relating to an item described in 
subsection (b)).
‘‘(4) The application of requirements relating to 
the adjustment of rates for health insurance cov-
erage. 
‘‘(b) TREATMENT OF BENEFIT AND GROUPING RE-
QUIREMENTS.—State laws insofar as they relate to any 
of the following are superseded and shall not apply to 
health benefits coverage made available through a 
HealthMart: 
‘‘(1) Benefit requirements for health benefits 
coverage offered through a HealthMart, including 
(but not limited to) requirements relating to cov-
erage of specific providers, specific services or condi-
tions, or the amount, duration, or scope of benefits, 
but not including requirements to the extent re-
quired to implement title XXVII or other Federal 
law and to the extent the requirement prohibits an 
exclusion of a specific disease from such coverage. 
‘‘(2) Requirements (commonly referred to as 
fictitious group laws) relating to grouping and simi-
lar requirements for such coverage to the extent 
such requirements impede the establishment and op-
eration of HealthMarts pursuant to this title. 
‘‘(3) Any other requirements (including limita-
tions on compensation arrangements) that, directly 
or indirectly, preclude (or have the effect of pre-
cluding) the offering of such coverage through a 
HealthMart, if the HealthMart meets the require-
ments of this title. 
Any State law or regulation relating to the composition 
or organization of a HealthMart is preempted to the ex-
tent the law or regulation is inconsistent with the provi-
sions of this title. 
‘‘(c) APPLICATION OF ERISA FIDUCIARY AND DIS-
CLOSURE REQUIREMENTS.—The board of directors of a 
HealthMart is deemed to be a plan administrator of an 
employee welfare benefit plan which is a group health plan 
for purposes of applying parts 1 and 4 of subtitle B of 
title I of the Employee Retirement Income Security Act 
of 1974 and those provisions of part 5 of such subtitle 
which are applicable to enforcement of such parts 1 and 
4, and the HealthMart shall be treated as such a plan 
and the enrollees enrolled on the basis of employment shall 
be treated as participants and beneficiaries for purposes 
of applying such provisions pursuant to this subsection. 
‘‘(d) APPLICATION OF ERISA RENEWABILITY PRO-
TECTION.—A HealthMart is deemed to be group health 
plan that is a multiple employer welfare arrangement for 
purposes of applying section 703 of the Employee Retire-
ment Income Security Act of 1974.