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107 STAT. 374 PUBLIC LAW 103-66—AUG. 10, 1993 be made to the alternate recipient or the alternate recipient's custodial parent or legal guardian. "(b) RIGHTS OF STATES WITH RESPECT TO GROUP HEALTH PLANS WHERE PARTICIPANTS OR BENEFICIARIES THEREUNDER ARE EUGIBLE FOR MEDICAID BENEFITS.— "(1) COMPLIANCE BY PLANS WITH ASSIGNMENT OF RIGHTS.— A group health plan shall provide that payment for benefits with respect to a participant under the plan will be made in accordance with any assignment of rights made by or on behalf of such participant or a beneficiary of the participant as reqtured by a State plan for medical assistance approved under title XIX of the Social Security Act pursuant to section 1912(aXl)(A) of such Act (as in effect on the date of the enact- ment of the Omnibus Budget Reconciliation Act of 1993). "(2) ENROLLMENT AND PROVISION OF BENEFITS WITHOUT REGARD TO MEDICAID ELIGIBILITY.—A group health plan shall provide that, in enrolling an individual as a participant or beneficiary or in determining or making any payments for benefits of an individual as a participant or beneficiary, the fact that the individual is eligible for or is provided medical assistance imder a State plan for medical assistance approved under title XIX of the Social Seciuity Act will not be taken into account. "(3) ACQUISITION BY STATES OF RIGHTS OF THIRD PARTIES.— A group health plan shall provide that, to the extent that payment has been made under a State plan for medical assist- ance approved under title XIX of the Social Security Act in any case in which a group health plan has a legal liability to make pa3nnent for items or services constituting such assist- ance, payment for benefits iinder the plan will be made in accordance with any State law which provides that the Stete has acquired the rights with respect to a participant to such payment for such items or services. "(c) GROUP HEALTH PLAN COVERAGE OF DEPENDENT CHILDREN IN CASES OF ADOPTION.— "(1) COVERAGE EFFECTIVE UPON PLACEMENT FOR ADOP- TION.—In any case in which a group health plan provides coverage for dependent children of participants or beneficiaries, such plan shall provide benefits to dependent children placed with participants or beneficiaries for adoption under the same terms and conditions as apply in the case of dependent children who are natural children of participants or beneficiaries under the plan, irrespective of whether the adoption has become final. "(2) RESTRICTIONS BASED ON PREEXISTING CONDITIONS AT TIME OF PLACEMENT FOR ADOPTION PROHIBITED.—^A group health plan may not restrict coverage under the plan of any dependent child adopted by a participant or beneficiary, or placed with a participant or beneficiary for adoption, solely on the basis of a preexisting condition of such child at the time that such child would otherwise become eligible for cov- erage under the plan, if the adoption or placement for adoption occurs while the participant or beneficiary is eligible for cov- erage under the plan. "(3) DEFINITIONS.—For purposes of this subsection— "(A) CHILD.—^The term 'child' means, in connection with any adoption, or placement for adoption, of the child, an