Working Families Health Access Act of 1996

Working Families Health Access Act of 1996 - Amends the Internal Revenue Code to impose an excise tax on a health insurance policy issuer (or, in the case of a self-insured plan, the sponsor) equal to a specified percentage of premiums received (or, in the case of a self-insured plan, of expenditures) under the policy or plan during the calendar year for failure to meet the standards specified in this Act.

Prohibits the establishment or imposition by group health plans or carriers offering health insurance coverage in connection with a plan, or for individuals with qualifying previous coverage, of eligibility, continuation, enrollment, or contribution requirements based on factors directly related to health status, medical condition, claims experience, receipt of health care, medical history, disability, or evidence of insurability.

Requires the use of preexisting condition limitations or exclusions to be limited to a three-month period before the date of enrollment during which the condition was diagnosed or treated. Limits the period of limitation or exclusion relating to treatment of the condition to no more than six months and credits periods of qualifying previous coverage to reduce that period. Makes exceptions to the limitation or exclusion period for treatment related to pregnancy, newborns, and adopted children. Permits an individual to waive the three-month limitation or six-month exclusion period.

Prohibits a carrier from refusing to renew health insurance coverage except for specified reasons, including premium nonpayment or fraud by the insured. Details allowable nondiscriminatory conditions for discontinuation of coverage, geographic limitations, and minimum participation requirements.

Allows States to establish, implement, or continue in effect health insurance coverage standards that are at least as stringent as those established by this Act. Directs that nothing shall be construed to preempt State laws that: (1) impose a shorter look-back period; (2) impose a limitation or exclusion of benefits for the treatment of a preexisting condition for a shorter period; or (3) allow certain individuals to be considered to be previously covered.

Treats, with certain exceptions, divorce (or annulment) or separation of a covered employee from the employee's spouse, if the employee disenrolls a qualified beneficiary within the 12-month period preceding the date of such divorce or separation, as a qualifying event (allowing the election of continuation coverage) and the loss of coverage a result (and by reason) of such event.

Permits the termination of COBRA continuation coverage in the case of an individual eligible for coverage as an employee for group health coverage which does not impose a preexisting condition exclusion or limitation.