Current Status Introducing Body:House Bill Number:3570 Primary Sponsor:J. Bailey Committee Number:26 Type of Legislation:GB Subject:Health insurance pool and major medical expense Residing Body:House Current Committee:Labor, Commerce and Industry Companion Bill Number:460 Computer Document Number:BBM/10283JM.93 Introduced Date:19930225 Last History Body:House Last History Date:19930225 Last History Type:Introduced, read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:J. Bailey Corning McElveen Quinn Scott Type of Legislation:General Bill
Bill Body Date Action Description CMN Leg Involved
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3570 House 19930225 Introduced, read first time, 26
referred to Committee
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TO AMEND ACT 127 OF 1989, AS AMENDED, RELATING TO THE SOUTH CAROLINA HEALTH INSURANCE POOL AND MAJOR MEDICAL EXPENSE COVERAGE, SO AS TO PROVIDE THAT, IF THE TOTAL TAX CREDIT PROVIDED IN ACT 127 OF 1989 EXCEEDS SEVEN MILLION DOLLARS, RATHER THAN FIVE MILLION DOLLARS, IN ANY ONE YEAR FOR ALL MEMBERS OF THE POOL, THE BOARD OF DIRECTORS OF THE POOL IS REQUIRED TO ESTABLISH A RATE FOR ALL POLICIES WHICH ASSURES THAT THE TAX CREDIT DOES NOT EXCEED SEVEN MILLION DOLLARS, RATHER THAN FIVE MILLION DOLLARS, IN THE FOLLOWING YEAR OF OPERATION.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Paragraph (2) of subsection (C) of Section 6 of Act 127 of 1989 is amended to read:
"(2) The board shall determine the standard risk rate by taking into account the individual standard rate charged by the five largest insurers offering individual coverages in the State comparable to the pool coverage. If five insurers do not offer comparable coverage, the standard risk rate must be established using reasonable actuarial techniques and must reflect anticipated experience and expenses for coverage. Rates initially established for pool coverage are two hundred percent of rates established as applicable for individual standard risks. Rates subsequently established must provide fully for the expected costs of claims and expenses of operation taking into account investment income and any other cost factors, but may not exceed three hundred percent of rates established as applicable for individual standard risks subject to the limitations described in this section. If the total tax credit provided in Section 8 exceeds five seven million dollars in any one year for all members of the pool, the board shall establish a rate for all policies which assures that the tax credit does not exceed five seven million dollars in the following year of operation. All rates and rate schedules must be submitted to the commissioner for approval."
SECTION 2. This act takes effect upon approval by the Governor.