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COMMITTEE REPORT
May 9, 2002
H. 4583
Introduced by Reps. Tripp, Cato, Bales, Altman, Askins, Barfield, G. Brown, Coates, Cooper, Easterday, Harrison, Kirsh, Leach, Littlejohn, Loftis, McCraw, McGee, Owens, Perry, Phillips, Sandifer, Scarborough, Simrill, Stille, Vaughn, White, Wilkins, J. Young, Rodgers, A. Young and Walker
S. Printed 5/9/02--S.
Read the first time March 21, 2002.
To whom was referred a Bill (H. 4583) to amend the Code of Laws of South Carolina, 1976, by adding Section 38-71-285 so as to prohibit mandates on health insurance plans beyond what is required, etc., respectfully
That they have duly and carefully considered the same and recommend that the same do pass with amendment:
Amend the bill, as and if amended, page 1, line 30, by striking: / ten /
and inserting : / eleven /.
Amend the bill further as and if amended, page 2, line 1, by striking: / four /
and inserting: / five /.
Amend the bill further, as and if amended, page 2, line 3, by striking: / four /
and inserting: / five /.
Amend the bill further, as and if amended, page 2, line 10, by inserting after the word / employees /
the following to read:
/ ; and,
(c) one must be a representative of the hospital industry /.
Amend the bill further, as and if amended, page 2, line 15, by striking: / eight /
and inserting: / eleven /.
Renumber sections to conform.
Amend title to conform.
DAVID L. THOMAS for Committee.
EXPLANATION OF IMPACT:
The Department of Insurance would be required to provide staff and administrative support for the task force created. The department does not anticipate that the costs for this will be significant.
Approved By:
Don Addy
Office of State Budget
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-71-285 SO AS TO PROHIBIT MANDATES ON HEALTH INSURANCE PLANS BEYOND WHAT IS REQUIRED AS OF JANUARY 1, 2002.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 38-71-285. (A) As used in this section:
(1) 'mandated health benefit' means a benefit or coverage that is required by law to be offered or provided by a health insurance issuer and includes: coverage for specific health care services, treatments or practices; or the offering of specific health care services, treatments or practices;
(2) 'health insurance issuer' means any entity that provides health insurance coverage in this State.
(B) There is established the Task Force to Review State and Federal Health Insurance Mandates in South Carolina (task force). The task force consists of ten members selected as follows:
(1) the Director of the Department of Insurance, or his designee;
(2) the Chairman of the Senate Committee on Banking and Insurance, or his designee;
(3) the Chairman of the House of Representatives Committee on Labor, Commerce and Industry, or his designee;
(4) the Director of the State Employees' Health Plan, or his designee;
(5) two members to be appointed by the Governor, one of whom must be a representative of health care providers and one of whom must be a member of the general public who is not associated with health care providers; and
(6) four additional members selected by unanimous agreement of the members provided in items (1), (2), (3) and (4). These four members must have demonstrated expertise in health insurance and managed care issues; and
(a) two must be representatives of the health insurance industry, at least one of which being a representative of a domestic health insurance issuer;
(b) two must be representatives of the business community, at least one of which must be a representative of a company that employs fewer than fifty employees.
Vacancies in the task force must be filled by appointment or selection, as applicable, in the manner of original appointment or selection. No business other than that necessary to establish the task force and select the additional members may be conducted until all eight members have been appointed or selected and qualify. Staff and administrative support for the task force must be provided by the Department of Insurance and the State Employees' Health Plan in the manner the task force determines appropriate.
(C) The task force may hold public hearings, conduct research, receive the testimony of experts, review, for purposes of comparison, the mandated health benefits upon health insurance issuers in other states and jurisdictions and the effects of such mandates, and take other actions it determines appropriate for the completion of its assigned task. At a minimum, the task force shall inquire into and make recommendations with respect to:
(1) each and every State and Federally mandated health benefit placed upon health insurance issuers in South Carolina since 1990;
(2) the impact of each such mandated health benefit on the premiums for health insurance coverage in South Carolina;
(D) The task force shall make a final report with recommendations to the General Assembly no later than January 1, 2005. Upon submission of the final report and recommendations, the task force is dissolved. Until the task force is so dissolved, no mandated health benefit may be imposed on a health insurance issuer doing business in this State beyond those required as of January 1, 2002.
(E) Nothing in this section shall be construed to prohibit any health insurance issuer from voluntarily expanding coverage or to prohibit any individual or employer from electing to expand coverage on any health maintenance organization contract or individual or group health insurance policy or contract covering the individual, the employer, or employees of the employer as applicable.
(F) Nothing in this section shall be construed to prohibit amendments to comport with federal law.
SECTION 2. This act takes effect upon approval by the Governor. Section 38-71-285 of the 1976 Code, as added by this act, is repealed effective June 30, 2007.
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