Under HIPAA's portability rules as modified by the ACA, which statement is correct regarding pre-existing condition exclusions in group health plans?

Explanation

Originally, HIPAA Title I (29 U.S.C. §1181) permitted group health plans to impose a pre-existing condition exclusion of up to 12 months (18 months for late enrollees), reduced by prior 'creditable coverage' under a HIPAA certificate. However, the Affordable Care Act effectively eliminated pre-existing condition exclusions: §2704 of the Public Health Service Act, added by the ACA, prohibits ANY pre-existing condition exclusion in non-grandfathered individual and group health plans. The 12-month exclusion less creditable coverage and the 18-month late-enrollee exclusion both describe the pre-ACA HIPAA rule, which has been superseded. The exception said to survive for participants over age 65 is fabricated. Today, both Covered California and employer group plans must accept enrollees regardless of pre-existing conditions; California Insurance Code §10198.7 mirrors this protection at the state level.