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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING ARTICLE 8 TO CHAPTER 11, TITLE 1 SO AS TO ENACT THE "SOUTH CAROLINA RESIDENT INSURANCE PLAN" TO ESTABLISH A STATE HEALTH INSURANCE PLAN FOR NONSTATE EMPLOYEE INDIVIDUALS; TO REQUIRE THE BUDGET AND CONTROL BOARD TO ADMINISTER THE PLAN; TO PROVIDE THAT PREMIUMS PAID INTO THIS PLAN MUST NOT BE COMMINGLED WITH STATE EMPLOYEES' HEALTH INSURANCE PREMIUMS, AND TO REQUIRE BOTH PLANS TO OPERATE INDEPENDENTLY OF EACH OTHER; TO REQUIRE PARTICIPANTS TO BE SOUTH CAROLINA RESIDENTS; TO AUTHORIZE PARTICIPANTS TO OPT IN OR OUT OF THE PLAN AT ANY TIME; TO REQUIRE PARTICIPANTS TO PAY INTO THE PLAN ONE YEAR BEFORE RECEIVING BENEFITS; TO EXCLUDE PREEXISTING CONDITIONS FROM COVERAGE FOR TWO YEARS; TO PROVIDE FOR A TWO THOUSAND DOLLAR DEDUCTIBLE AND THEREAFTER PAYMENT OF EIGHTY PERCENT OF OUT-OF-POCKET EXPENSES; TO AUTHORIZE PAYROLL DEDUCTION FOR PREMIUMS; AND TO PROVIDE THAT TWO PERCENT OF THE PREMIUMS WITHHELD MAY BE RETAINED BY THE EMPLOYER FOR ADMINISTRATIVE COSTS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 11, Title 1 of the 1976 Code is amended by adding:
Section 1-11-1200. This article may be cited as the 'South Carolina Resident Insurance Plan'.
Section 1-11-1210. (A) There is established the State Health Insurance Plan for Nonstate Employees, which must be administered by the Budget and Control Board. Premiums paid into this plan must not be commingled with premiums paid into the State Employees Health Insurance Plan, and both plans must be operated independently of each other.
(B) The Budget and Control Board shall administer the plan in accordance with the following and shall promulgate regulations needed to carry out the provisions of this section:
(1) participants in the plan must be South Carolina residents and may enroll in and leave the plan at any time;
(2) coverage under the plan does not commence for an individual until the person pays premiums, as established by the Budget and Control Board based on age and health status, for twelve consecutive months;
(3) preexisting medical conditions are excluded from coverage for the first two years of coverage;
(4) each participant must meet a two thousand dollar deductible after which the plan pays eighty percent of the participant's out-of-pocket covered medical expenses;
(5) an employer may provide collection of a participant's premiums by payroll deduction in accordance with procedures prescribed by the Budget and Control Board, and an employer who provides such payroll deduction of premiums shall retain two percent of the premiums withheld to defray costs of administering the payroll deduction."
SECTION 2. This act takes effect upon approval by the Governor.
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