Fossen
Fossen v. Blue Cross & Blue Shield of Montana, Inc.
Opinion
Opinion
Smith, J.
This appeal presents the question of whether a provision of the federal Health Insurance Portability and Accountability Act (HIPAA), Pub.L. No. 104-191, 110 Stat.1936 (1996), preempts Montana’s “little HIPAA” law, Mont.Code Ann. § 33-22-526(2)(a), for purposes of both conferring federal subject matter jurisdiction and defeating state-law causes of action on the merits. The federal and state HIPAA provisions at issue prohibit certain health insurers from charging different premiums to “similarly situated” participants on account of a participant’s “health status-related factor.” 29 U.S.C. § 1182 (b)(1); Mont.Code Ann. § 33-22-526(2)(a). We affirm the district court and hold that federal HIPAA preempts the Montana law, both jurisdictionally and on the merits, because Montana’s HIPAA provision is identical to, and expressly relies upon, federal law. However, federal law does not preempt a claim for relief under a separate Montana unfair insurance practices statute that bars insurers from engaging in “unfair discrimination” when charging policy premiums to similarly situated individuals. Mont.Code Ann. § 33-18-206(2).
BACKGROUND
Plaintiffs-Appellants (collectively, Fossens)…