Current Status Bill Number:1066 Type of Legislation:General Bill GB Introducing Body:Senate Introduced Date:19980226 Primary Sponsor:McConnell All Sponsors:McConnell and Saleeby Drafted Document Number:kgh\15471jm.98 Residing Body:Senate Current Committee:Banking and Insurance Committee 02 SBI Subject:Health Insurance Pool, major medical expense coverage, limitation on rates; Medical
Body Date Action Description Com Leg Involved
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Senate 19980226 Introduced, read first time, 02 SBI
referred to Committee
View additional legislative information at the LPITS web site.
TO AMEND SECTION 38-74-60, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA HEALTH INSURANCE POOL, MAJOR MEDICAL EXPENSE COVERAGE, AND A LIMITATION THAT RATES FOR POOL COVERAGE MAY NOT EXCEED TWO HUNDRED PERCENT OF RATES ESTABLISHED FOR CERTAIN OTHER COVERAGES, SO AS TO PROVIDE THAT RATES SHALL NOT EXCEED TWO HUNDRED PERCENT FOR POLICIES OF FEDERALLY-DEFINED ELIGIBLE INDIVIDUALS, AND TO PROVIDE THAT THE RATES OF POLICIES OF INDIVIDUALS WHO ARE NOT FEDERALLY-DEFINED ELIGIBLE INDIVIDUALS SHALL NOT BE INCREASED BEYOND THAT PROVIDED FOR BY LAW SO AS TO ACHIEVE THE TWO HUNDRED PERCENT RATE LIMITATION FOR FEDERALLY-DEFINED ELIGIBLE INDIVIDUALS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 38-74-60(D)(2) of the 1976 Code, as last amended by Act 4 of 1997, is further amended to read:
"(2) The board shall determine the standard risk rate by taking into account the individual standard rate charged by the five largest insurers offering individual coverages in the State comparable to the pool coverage. If five insurers do not offer comparable coverage, the standard risk rate must be established using reasonable actuarial techniques and must reflect anticipated experience and expenses for coverage. Rates initially established for pool coverage are two hundred percent of rates established as applicable for individual standard risks. Rates subsequently established must provide fully for the expected costs of claims and expenses of operation taking into account investment income and any other cost factors, but may not exceed two hundred percent of rates established as applicable for individual standard risks subject to the limitations described in this section. If the total tax credit provided in Section 38-74-80 exceeds five million dollars in any one year for all members of the pool, the board shall establish a rate for all policies that may exceed, if necessary, the two hundred percent limitation as provided in this subsection so as to assure that the tax credit does not exceed five million dollars in the following year of operation. However, in no event shall rates exceed two hundred percent for policies of federally-defined eligible individuals; nor shall the rates of policies of individuals who are not federally-defined eligible individuals be increased beyond that provided for in this subsection so as to achieve the two hundred percent rate limitation for federally-defined eligible individuals. All rates and rate schedules must be submitted to the director or his designee for approval."
SECTION 2. If any provision of this act or the application of any provision of this act to any person or circumstance is held unconstitutional or otherwise invalid, the remainder of this act and application of its provisions to any person or circumstance shall not be affected by the holding of unconstitutionality or invalidity.
SECTION 3. This act takes effect upon approval by the Governor.