Current Status Introducing Body:House Bill Number:3307 Primary Sponsor:Rama Committee Number:26 Type of Legislation:GB Subject:Hospital insurance claims Residing Body:House Current Committee:Labor, Commerce and Industry Date Tabled:May 07, 1991 Computer Document Number:NO5/7090.BD Introduced Date:Jan 24, 1991 Last History Body:House Last History Date:May 07, 1991 Last History Type:Tabled in Committee Scope of Legislation:Statewide All Sponsors:Rama Type of Legislation:General Bill
Bill Body Date Action Description CMN
---- ------ ------------ ------------------------------ ---
3307 House May 07, 1991 Tabled in Committee 26
3307 House Jan 24, 1991 Introduced, read first time, 26
referred to Committee
View additional legislative information at the LPITS web site.
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-59-45 SO AS TO PROVIDE FOR THE TIMELY PAYMENT OF CLAIMS TO A HOSPITAL BY ACCIDENT AND HEALTH INSURERS, FOR PENALTIES, AND FOR EXCESSIVE AND IMPROPERLY PAID CLAIMS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The 1976 Code is amended by adding:
"Section 38-59-45. (A) No insurer of accident or health insurance, including self-insured providers, to which the insurance laws of this State apply, may delay payment to a hospital of a valid and properly completed claim more than ninety days after receipt of the claim by the insurer. If the insurer does not prove that its failure to pay the claim in a timely manner was in good faith, the nonpayment is a bad faith denial, and the provisions of Section 38-59-40 on the amount of liability allowed apply. Payments made after ninety days accrue interest at the rate of one and one-half percent a month unless the insurer proves that its failure to pay the claim in a timely manner was in good faith.
(B) If the insurer determines after the payment of a claim to a hospital that it was excessive or improperly paid, it shall notify the hospital in writing detailing the error and the amount of the requested refund. If the hospital determines that the payment was excessive or improperly paid, it shall refund the excessive or improperly paid amount including accrued interest at the rate of one and one-half percent a month beginning on the date of payment."
SECTION 2. This act takes effect upon approval by the Governor.