H 3570 General Bill, By J.J. Bailey, R.S. Corning, J.T. McElveen, Quinn and 
Scott

Similar(S 460)
 A Bill to amend Act 127 of 1989, as amended, relating to the South Carolina
 Health Insurance Pool and major medical expense coverage, so as to provide
 that, if the total tax credit provided in Act 127 of 1989 exceeds seven
 million dollars, rather than five million dollars, in any one year for all
 members of the Pool, the Board of Directors of the Pool is required to
 establish a rate for all policies which assures that the tax credit does not
 exceed seven million dollars, rather than five million dollars, in the
 following year of operation.

   02/25/93  House  Introduced and read first time HJ-3
   02/25/93  House  Referred to Committee on Labor, Commerce and
                     Industry HJ-3

A BILL

TO AMEND ACT 127 OF 1989, AS AMENDED, RELATING TO THE SOUTH CAROLINA HEALTH INSURANCE POOL AND MAJOR MEDICAL EXPENSE COVERAGE, SO AS TO PROVIDE THAT, IF THE TOTAL TAX CREDIT PROVIDED IN ACT 127 OF 1989 EXCEEDS SEVEN MILLION DOLLARS, RATHER THAN FIVE MILLION DOLLARS, IN ANY ONE YEAR FOR ALL MEMBERS OF THE POOL, THE BOARD OF DIRECTORS OF THE POOL IS REQUIRED TO ESTABLISH A RATE FOR ALL POLICIES WHICH ASSURES THAT THE TAX CREDIT DOES NOT EXCEED SEVEN MILLION DOLLARS, RATHER THAN FIVE MILLION DOLLARS, IN THE FOLLOWING YEAR OF OPERATION.

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

SECTION 1. Paragraph (2) of subsection (C) of Section 6 of Act 127 of 1989 is 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 three 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 8 exceeds five seven million dollars in any one year for all members of the pool, the board shall establish a rate for all policies which assures that the tax credit does not exceed five seven million dollars in the following year of operation. All rates and rate schedules must be submitted to the commissioner for approval."

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