South Carolina General Assembly
113th Session, 1999-2000

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Bill 1132


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Bill Number:                      1132
Type of Legislation:              General Bill GB
Introducing Body:                 Senate
Introduced Date:                  20000209
Primary Sponsor:                  Saleeby
All Sponsors:                     Saleeby, Reese, Bryan, Courtney, Short, 
                                  Richardson, Passailaigue, McConnell and Hutto
Drafted Document Number:          l:\council\bills\nbd\11705ac00.doc
Residing Body:                    Senate
Current Committee:                Banking and Insurance Committee 02 SBI
Subject:                          Health medical insurance plans, 
                                  prescription drug cards, coverage provisions; 
                                  Pharmacies and Pharmacists


                        History

Body    Date      Action Description                     Com     Leg Involved
______  ________  ______________________________________ _______ ____________
Senate  20000209  Introduced, read first time,           02 SBI
                  referred to Committee


              Versions of This Bill

View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-71-290 SO AS TO REQUIRE HEALTH BENEFIT PLANS WHICH PROVIDE COVERAGE FOR PRESCRIPTION DRUGS OR DEVICES TO ISSUE ITS INSUREDS A CARD OR OTHER TECHNOLOGY CONTAINING UNIFORM PRESCRIPTION DRUG INFORMATION AND TO PROVIDE FOR THE FORMAT, CONTENT, ISSUANCE, AND RENEWAL OF SUCH CARDS; AND BY ADDING SECTION 38-71-295 SO AS TO PROHIBIT A PERSON FROM SELLING, MARKETING, PROMOTING, ADVERTISING, OR DISTRIBUTING A CARD OR OTHER PURCHASING MECHANISM OR DEVICE WHICH IS NOT INSURANCE AND WHICH PURPORTS TO OFFER DISCOUNTS OR ACCESS TO DISCOUNTS UNLESS THE CARD STATES THAT THE DISCOUNTS ARE NOT INSURANCE, ARE SPECIFICALLY AUTHORIZED BY AN INDIVIDUAL, AND ARE NOT MISLEADING OR DECEPTIVE, TO PROVIDE A CAUSE OF ACTION AND REMEDIES FOR VIOLATIONS OF THIS PROVISION, AND TO PROVIDE EXCEPTIONS.

Whereas, this act is intended to lessen patients' waiting times, decrease administrative burdens for pharmacies, and improve care to patients by minimizing confusion, eliminating unnecessary paperwork, and streamlining dispensing of prescription products paid for by third party payors; and

Whereas, this act is also intended to prevent a person or persons from selling, marketing, promoting, advertising or otherwise distributing any card or other purchasing mechanism or device which is not insurance that purports to offer discounts or access to discounts from pharmacies for prescription drug purchases. Now, therefore,

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

SECTION 1. The 1976 Code is amended by adding:

"Section 38-71-290. (A) A health benefit plan that provides coverage for prescription drugs or devices or administers such a plan including, but not limited to, third party administrators for self insured plans and state administered plans shall issue to its insureds a card or other technology containing uniform prescription drug information. The uniform prescription drug information card or technology must be in the format approved by the National Council for Prescription Drug Programs (NCPDP) and shall include all of the required and conditional or situational fields and conform to the most recent pharmacy ID card or technology implementation guide produced by NCPDP or conform to a national format acceptable to the Department of Insurance.

(B) A new uniform prescription drug information card or technology must be issued by a health benefit plan upon enrollment and reissued upon any change in the insured's coverage that impacts data contained on the card or upon any change in the NCPDP implementation guide. Newly issued cards or technology must be updated with the latest coverage information and shall conform to the NCPDP standards and to the implementation guide in effect at that time.

(C) As used in this section, 'health benefit plan' means an accident and health insurance policy or certificate, a nonprofit hospital or medical service corporation contract, a health maintenance organization subscriber contract, a plan provided by a multiple employer welfare arrangement, or a plan provided by another benefit arrangement, to the extent permitted by the Employee Retirement Income Security Act of 1974, as amended, or by any waiver of or other exception to that act provided under federal law or regulation. 'Health benefit plan' does not mean any of the following types of insurance:

(1) accident;

(2) credit;

(3) disability income;

(4) specified disease;

(5) dental or vision;

(6) coverage issued as a supplement to liability insurance;

(7) medical payments under automobile or homeowners;

(8) insurance under which benefits are payable with or without regard to fault and this is statutorily required to be contained in any liability policy or equivalent self-insurance; and

(9) hospital income or indemnity.

(D) To conduct business in this State, a health benefit plan must be in compliance with this section.

(E) For purposes of this section, renewal of a health benefit policy, contract, or plan is presumed to occur on each anniversary of the date on which coverage was first effective for the person or persons covered by the health benefit plan.

(F) The Department of Insurance shall promulgate regulations necessary to effectuate this section and shall enforce the provisions of this section."

SECTION 2. The 1976 Code is amended by adding:

"Section 38-71-295. (A) A person may not sell, market, promote, advertise, or distribute a card or other purchasing mechanism or device which is not insurance that purports to offer discounts or access to discounts from pharmacies for prescription drug purchases unless:

(1) the card or other purchasing mechanism or device expressly states in bold and prominent type, prominently placed, that the discounts are not insurance;

(2) the discounts are specifically authorized by an individual and separately contract with each pharmacy listed in conjunction with the card or other purchasing mechanism or device; and

(3) the discounts or access to discounts offered, or the range of discounts or access to the range of discounts offered, are not misleading, deceptive, or fraudulent.

(B) The Attorney General or a person, firm, trade association, private corporation, or municipal or other public corporation may maintain an action to enjoin any act in violation of subsection (A) for the recovery of damages. This action may be brought in the county where the plaintiff resides or conducts business or in the county where the card or other purchasing mechanism or device was sold, marketed, promoted, advertised, or distributed.

(C) If the court finds that the defendant has violated any of the provisions of subsection (A), the court shall enjoin the defendant from continuing the acts of violation. In addition to injunctive relief, the plaintiff in the action is entitled to recover from the defendant:

(1) one hundred dollars per card or other purchasing mechanism or device sold, marketed, promoted, advertised, or distributed within the State, or ten thousand dollars, whichever is greater;

(2) three times the amount of the actual damages, if any, sustained;

(3) reasonable attorneys fees;

(4) costs; and

(5) any other relief that the court considers proper.

(D) It is not necessary, except to recover for damages under subsection (C)(2), that actual damages to the plaintiff be alleged or proven in order to maintain an action under this section.

(E) An action under this section must be commenced within two years after the date on which the violation of subsection (A) occurred or within two years after the person bringing the action discovered, or in the exercise of reasonable diligence should have discovered, the occurrence of the violation of subsection (A). The period of limitation provided in this subsection may be extended for a period of one hundred and eighty days if the person bringing the action proves by a preponderance of the evidence that the failure to timely commence the action was caused by conduct of the defendant that was solely calculated to induce the plaintiff to refrain from or postpone commencement of the action.

(F) The remedies provided for in this section are cumulative and in addition to any other applicable criminal, civil, or administrative penalties.

(G) A person who sells, markets, promotes, advertises, or distributes a card or other purchasing mechanism or device which is not insurance that purports to offer discounts or access to discounts from pharmacies for prescription drug purchases in this State shall designate a resident of this State as an agent for service of process and register the agent with the Secretary of State.

(H) This section does not apply to:

(1) eye or vision care services or glasses or contact lenses provided by an optometrist or ophthalmologist;

(2) a benefit administered by a health insurer, health care service contractor, or health maintenance organization;

(3) a benefit administered by, or under contract with, the State of South Carolina; or

(4) a customer discount or membership card issued by a store or buying club for use at that store or buying club."

SECTION 3. If any provision of this act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.

SECTION 4. This act takes effect upon approval by the Governor and applies to health benefit plans that are delivered, issued for delivery, or renewed after June 30, 2000.

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