H 3509 General Bill, By Long, D.C. Moss, Limehouse, Thayer, Toole, Neilson, 
Allison, Umphlett, Spires, Bowen, Parker, Gambrell, Murphy, Agnew, Bales, 
Bingham, Brady, Branham, Corbin, Crawford, Dillard, Erickson, Lowe, Merrill, 
J.M. Neal, Norman, G.R. Smith, J.E. Smith and Willis

Similar(S 320, S 472)
 A BILL TO AMEND SECTION 38-71-10, CODE OF LAWS OF SOUTH CAROLINA, 1976,
 RELATING TO COVERAGE THAT MAY BE WRITTEN BY A LICENSED ACCIDENT AND HEALTH
 INSURER, SO AS TO PROHIBIT THE INSURER FROM DIRECTLY PAYING MONEY TO AN
 INSURED FOR A HEALTH CARE SERVICE PROVIDED TO THE INSURED, AND TO PROVIDE
 EXCEPTIONS.

   01/27/11  House  Introduced and read first time (House Journal-page 44)
   01/27/11  House  Referred to Committee on Labor, Commerce and
                     Industry (House Journal-page 44)
   02/02/11  House  Member(s) request name removed as sponsor: Hiott,
                     Pinson
   02/03/11  House  Member(s) request name removed as sponsor: Hixon
   02/08/11  House  Member(s) request name removed as sponsor: Sandifer

TO AMEND SECTION 38-71-10, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO COVERAGE THAT MAY BE WRITTEN BY A LICENSED ACCIDENT AND HEALTH INSURER, SO AS TO PROHIBIT THE INSURER FROM DIRECTLY PAYING MONEY TO AN INSURED FOR A HEALTH CARE SERVICE PROVIDED TO THE INSURED, AND TO PROVIDE EXCEPTIONS.

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

SECTION    1.    Section 38-71-10 of the 1976 Code is amended to read:

"Section 38-71-10.    (A)    All A licensed accident and health insurers are entitled to insurer must:

(a)(1)    issue and deliver a service benefit contracts contract to provide for prepayment of any a health care service and to make payment directly to the provider of the services service, in whole or in part, including, but not limited to, a professional services service, any institutional care, a personal services service, and supplies.

(b)(2)    issue and deliver contracts a contract of indemnity or contracts contract providing for payment of money directly to the insureds or for them on behalf of an insured for a health care services service provided to an insured.

(B)    Notwithstanding another provision of law, a licensed accident and health insurer may not make a payment of money directly to an insured for a health care service received by the insured.

(C)    The provisions of this section do not apply to:

(1)    supplemental or secondary insurance coverage; or

(2)    a person who documents to the insurer that he has fully paid the health care provider for the service rendered."

SECTION    2.    This act takes effect upon approval by the Governor.