S 0699 General Bill, By McGill
 A Bill to amend the Code of Laws of South Carolina, 1976, by adding Section
 1-11-141 so as to provide that a spouse and children of a state employee on
 leave of absence for active duty military service may continue state health
 and dental insurance if the employee contributions and premiums for the spouse
 and children are paid, to provide that employer contributions are not
 required, to allow retroactive reinstatement of coverage for spouses and
 children if it has lapsed due to the leave of absence, and to waive
 preexisting conditions and waiting period requirements upon return to
 employment.

   02/26/91  Senate Introduced and read first time SJ-5
   02/26/91  Senate Referred to Committee on Finance SJ-5

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 1-11-141 SO AS TO PROVIDE THAT A SPOUSE AND CHILDREN OF A STATE EMPLOYEE ON LEAVE OF ABSENCE FOR ACTIVE DUTY MILITARY SERVICE MAY CONTINUE STATE HEALTH AND DENTAL INSURANCE IF THE EMPLOYEE CONTRIBUTIONS AND PREMIUMS FOR THE SPOUSE AND CHILDREN ARE PAID, TO PROVIDE THAT EMPLOYER CONTRIBUTIONS ARE NOT REQUIRED, TO ALLOW RETROACTIVE REINSTATEMENT OF COVERAGE FOR SPOUSES AND CHILDREN IF IT HAS LAPSED DUE TO THE LEAVE OF ABSENCE, AND TO WAIVE PREEXISTING CONDITIONS AND WAITING PERIOD REQUIREMENTS UPON RETURN TO EMPLOYMENT.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. The 1976 Code is amended by adding:

"Section 1-11-141. (A) The spouse and children of a person who is on leave of absence from state employment as a result of active duty military service may continue coverage under the state health and dental insurance plans so long as the employee contributions and premiums for coverage of the spouse and children are paid as prescribed by the State Budget and Control Board. Coverage of the employee's spouse and children must continue as if the employee were not on a leave of absence. The State is not required to make the employer contribution on behalf of the employee in order for coverage of the spouse and children to remain in force.

(B) The spouse and children of a state employee who is on leave of absence as a result of active duty military service may reinstate state health and dental insurance coverage that may have lapsed as a result of this leave. Reinstatement may be retroactive if the employee contributions and premiums for the spouse and children that would have been required during that period are paid. If reinstatement is retroactive, coverage must be provided as if it had never lapsed, reinstating coverage to the original effective date with no new preexisting condition or waiting period requirements. Credit must be allowed from the original effective date towards the uninterrupted satisfaction of the preexisting condition period, waiting period, and accrual of the deductible, unless a new calendar year has begun. If reinstatement is not retroactive, coverage must be provided from the date of reinstatement but the spouse and children must not be required to satisfy any new preexisting conditions or waiting periods not already in effect at the original effective date and the deductible which accrued while coverage was in force must be allowed to carry over to the reinstated coverage unless a new calendar year has begun.

(C) Upon returning to state employment, a state employee who was on leave of absence as a result of active duty military service and his spouse or children who did not maintain coverage under the state health or dental insurance plan must be given credit for the satisfaction of the preexisting condition period, waiting period, and deductible or any portion of them served under the plans before the leave. No new preexisting condition period, waiting period, or deductible, unless a new calendar year has begun, may be imposed on a state employee returning to employment following leave of absence for active duty military service or on his spouse or children."

SECTION 2. This act takes effect upon approval by the Governor.