Bill 1331

                    Current Status

Bill Number:               1331
Ratification Number:       499
Act Number                 428
Introducing Body:          Senate
Subject:                   Health insurance

(A428, R499, S1331)

AN ACT TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 2-7-73 SO AS TO PROVIDE THAT EVERY BILL OR RESOLUTION WHICH MANDATES A HEALTH INSURANCE COVERAGE OR THE OFFERING OF A HEALTH INSURANCE COVERAGE MUST HAVE ATTACHED TO IT A CERTAIN FISCAL IMPACT STATEMENT, AND TO PROVIDE FOR THE MANNER IN WHICH THIS FISCAL IMPACT STATEMENT MUST BE PREPARED.

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

Findings

SECTION 1. The General Assembly takes notice of the increasing number of proposals for the mandating of certain health coverages or offering of health coverages by insurance carriers, health care service contractors, and health maintenance organizations as a component of individual or group policies. Improved access to these health care services to segments of the population which desire them can provide beneficial health consequences which may be in the public interest.

However, the cost ramifications of expanding health coverages is resulting in a growing concern. The way that these coverages are structured and the steps taken to create incentives to provide cost-effective services or to take advantage of cost off-setting features of services can significantly influence the cost impact of mandating particular coverages.

This act provides for a set of guidelines which must be addressed in the consideration of all these mandated coverage proposals coming before the General Assembly.

Fiscal impact statement for health coverage bills

SECTION 2. The 1976 Code is amended by adding:

"Section 2-7-73. (A) Any bill or resolution which would mandate a health coverage or offering of a health coverage by an insurance carrier, health care service contractor, or health maintenance organization as a component of individual or group policies, must have attached to it a statement of the financial impact of the coverage, according to the guidelines enumerated in subsection (B). This financial impact analysis must be conducted by the Division of Research and Statistical Services and signed by the Chief Insurance Commissioner, or his designee. The statement required by this section must be delivered to the Senate or House committee to which any bill or resolution is referred, within thirty days of the written request of the chairman of such committee.

(B) Guidelines for assessing the financial impact of proposed mandated or mandatorily offered health coverage to the extent that information is available, must include, but are not limited to, the following:

(1) to what extent does the coverage increase or decrease the cost of treatment or services;

(2) to what extent does the coverage increase or decrease the use of treatment or service;

(3) to what extent does the mandated treatment or service substitute for more expensive treatment or service;

(4) to what extent does the coverage increase or decrease the administrative expenses of insurance companies and the premium and administrative expenses of policyholders; and

(5) what is the impact of this coverage on the total cost of health care."

Time effective

SECTION 3. This act takes effect upon approval by the Governor.

Approved the 24th day of April, 1990.