(a) A succeeding carrier’s health benefit plan that limits coverage in accordance with a preexisting conditions provision, other than a waiting period, must provide, during the period the limitation on coverage is in effect, the level of benefits prescribed by this section to an individual covered by the succeeding carrier who:
(1) has a preexisting condition; and
(2) was covered by the previous carrier’s plan on the date on which that plan was discontinued.
(b) The health benefit plan must provide a level of benefits equal to the lesser of:
(1) the level of benefits available under the succeeding carrier’s plan as determined without applying the preexisting conditions provision; or
(2) the level of benefits that would have been available under the previous carrier’s plan.