Download This Bill in Microsoft Word format
Indicates Matter Stricken
Indicates New Matter
H. 3593
STATUS INFORMATION
General Bill
Sponsors: Reps. Bingham and Toole
Document Path: l:\council\bills\bbm\9453htc03.doc
Companion/Similar bill(s): 349
Introduced in the House on February 12, 2003
Currently residing in the House Committee on Ways and Means
Summary: State health and dental plan, small employers allowed to participate in
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number ------------------------------------------------------------------------------- 2/12/2003 House Introduced and read first time HJ-37 2/12/2003 House Referred to Committee on Ways and Means HJ-37
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND SECTION 1-11-710, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INSURANCE FOR STATE EMPLOYEES AND SCHOOL DISTRICT EMPLOYEES, SO AS TO ALLOW SMALL EMPLOYERS TO PARTICIPATE IN THE STATE HEALTH AND DENTAL PLANS, TO AUTHORIZE THE BUDGET AND CONTROL BOARD TO ADJUST SEPARATELY THE BENEFITS AND PREMIUMS FOR SMALL EMPLOYERS TO ENSURE THAT THERE IS NO COST TO THE STATE ASSOCIATED WITH OFFERING OR ADMINISTERING SMALL EMPLOYER PARTICIPATION IN THE STATE HEALTH AND DENTAL PLANS, AND TO AUTHORIZE THE BUDGET AND CONTROL BOARD TO PROMULGATE REGULATIONS; AND TO AMEND SECTION 1-11-720, AS AMENDED, RELATING TO ENTITIES WHOSE EMPLOYEES ARE ELIGIBLE FOR STATE HEALTH AND DENTAL INSURANCE AND REQUIREMENTS FOR ELIGIBILITY, SO AS TO INCLUDE AND DEFINE CERTAIN SMALL EMPLOYERS.
Whereas, recent studies have shown that one out of four small businesses that offered health insurance to employees three years ago no longer provide that benefit because of drastic increases in health care costs; and
Whereas, these same studies reveal that up to eighteen percent of employees who are offered coverage at work do not participate, largely because of the cost; and
Whereas, small businesses represent more than ninety percent of all employers and employ up to fifty-one percent of all private sector employees, but are least able to absorb the double-digit annual premium increases; and
Whereas, nationwide, one out of every six Americans does not have the peace of mind that health care protection provides; and
Whereas, it is both sound public and economic policy to ensure that as many workers in South Carolina as possible have access to quality and affordable health care coverage. Now, therefore,
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 1-11-710(A) of the 1976 Code, as last amended by Act 62 of 2001, is further amended to read:
"(A) The State Budget and Control Board shall:
(1) make available to active and retired employees of this State, and its public school districts, and small employers as defined in Section 1-11-720 and their eligible dependents group health, dental, life, accidental death and dismemberment, and disability insurance plans and benefits in an equitable manner and of maximum benefit to those covered within the available resources.
(2) approve by August fifteenth of each year a plan of benefits, eligibility, and employer, employee, retiree, and dependent contributions for the next calendar year. The board shall devise a plan for the method and schedule of payment for the employer and employee share of contributions. Provided that the Budget and Control Board, by July 1 of the current fiscal year, shall develop and implement a plan increasing the employer contribution rates of the State Retirement System to a level adequate to cover the employer's share for the current fiscal year's cost of providing health and dental insurance to retired state and school district employees. The plan must include a method for the distribution of the funds appropriated as provided by law which are designated for retiree insurance and also must include a method for allocating to school districts, excluding EIA funding, sufficient general fund monies to offset the additional cost incurred by these entities in their federal and other fund activities as a result of this employer contribution charge. In addition, the board may adjust separately, and at any time, the benefits and premiums for small employers as defined in Section 1-11-720 to ensure that there is no cost to the State associated with offering or administering small employer participation in the state health and dental plans. The board also may promulgate those regulations it considers necessary to implement small employer participation in the state health and dental plans; to ensure the fiscal stability of these plans; and to allow independent insurance agents licensed in South Carolina to offer access to these plans. The board shall establish a separate fund to receive small employer employee contributions, and there must be no subsidy from the public employer employee contributions for the payment of claims made by small employer employees.
The amounts appropriated in this section shall constitute the state's pro rata contributions to these programs except the State shall pay its pro rata share of health and dental insurance premiums for retired state and public school employees for the current fiscal year.
(3) adjust the plan, benefits, or contributions, at any time to insure ensure the fiscal stability of the system.
(4) set aside in separate continuing accounts in the State Treasury, appropriately identified, all funds, state-appropriated and other, received for actual health and dental insurance premiums due. Funds credited to these accounts may be used to pay the costs of administering the health and dental insurance programs and may not be used for purposes of other than providing insurance benefits for employees and retirees. A reserve equal to not less than an average of one and one-half months' claims must be maintained in the accounts and all funds in excess of the reserve must be used to reduce premium rates or improve or expand benefits as funding permits."
SECTION 2. Section 1-11-720(A) of the 1976 Code, as last amended by Act 377 of 2000, is further amended by adding an appropriately numbered item at the end:
"( ) small employers, in connection with a group health plan with respect to a calendar year and a plan year, who employed an average of at least one but not more than one hundred persons during the preceding calendar year and who employed at least one person on the first day of the plan year. 'Small employer' includes a sole proprietor and a partner of a partnership."
SECTION 3. This act takes effect January 1, 2004.
This web page was last updated on Monday, December 7, 2009 at 10:27 A.M.