Restriction on application of preexisting condition exclusions
(A) In general Subject to subparagraph (B), the State child health plan shall not permit the imposition of any preexisting condition exclusion for covered benefits under the plan.
(B) Group health plans and group health insurance coverage If the State child health plan provides for benefits through payment for, or a contract with, a group health plan or group health insurance coverage, the plan may permit the imposition of a preexisting condition exclusion but only insofar as it is permitted under the applicable provisions of part 7 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 [ 29 U.S.C. 1181 et seq.] and title XXVII of the Public Health Service Act [ 42 U.S.C. 300gg et seq.].