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(vii) It has the option of using any type of rating arrangement with the health insurance plans and, at its discretion, premiums may be paid to the health insurance plans by the common group, by member small employers, or by eligible employees and their dependents.
(A) Health insurance plans offered through the common group which rate each member small employer separately are subject to the laws governing small employer health insurance; and

(B) Health insurance plans offered through the common group which rate the entire group as a whole must charge each insured person based on a community rate within the common group, adjusted for case characteristics as permitted by Section 38-71-940 and plan selection, and are subject to the laws governing group accident and health insurance.
(viii) It may not act as an agent or engage in any activities for which an insurance agent's license is required.

(ix) Before offering any health insurance plans through the common group, and annually thereafter, it registers with the commissioner and demonstrates continued compliance with the subitems (b)(i) through (viii).

(2) The benefits provided by the policy are based on some plan or plans precluding individual selection, except that insurance supplemental to the basic coverage may be available to persons insured under the policy.

(3) Except as hereinafter provided, For all groups, no evidence of individual insurability may be required at the time the person first becomes eligible for insurance or within thirty-one days thereafter. Nothing in this section precludes the obtaining of medical information with respect to the members of the group for use in determining the insurability

(4) The policies may contain a provision limiting coverage for preexisting conditions. The preexisting conditions must be covered no later than twelve months without medical care, treatment, or supplies ending after the effective date of the coverage or twelve months after the effective date of the coverage, whichever occurs first. Preexisting conditions are defined as `those conditions for which medical advice or treatment was received or recommended no more than twelve months before the effective date of a person's coverage'. However, whenever a covered person moves from one insured group to another, and is neither excluded from coverage nor subject to the imposition of preexisting condition limitations as permitted by Section 38-71-730(3), the insurer of the group to which the covered person moves shall give credit for the satisfaction of the preexisting condition period or portion thereof already served under the prior plan if the coverage is selected when the person first becomes eligible and the coverage is continuous to a date not more than thirty days prior to the effective date of the new coverage. Service under a probationary waiting period required by the employer is not considered to interrupt continuous service.

(5) Except as provided in item (1)(b)(vii) of this section, the The premium for the policy must be paid by the policyholder from the policyholder's funds or from funds contributed by the insured persons, or from both.

(6) A group policy or subscriber contract of accident and health insurance which is advertised, marketed, or designed primarily as a supplement to reimbursements under Medicare for the hospital, medical, or surgical expenses of persons eligible for Medicare must equal, and may exceed, the minimum standards for Medicare supplement policies as contained in regulations promulgated by the commissioner."/

Amend further, as and if amended, by striking SECTION 20 in its entirety, beginning at line 27 on page 26 and ending at line 4 on page 27, and inserting:

/SECTION 20. Section 38-71-940 of the 1976 Code, as added by Act 131 of 1991, is amended to read:

(1) The small employer insurer shall determine the actuarial base rate for each health insurance plan it offers to small employers in the State. In determining the premium rates to be charged to a small employer for a health insurance plan, the actuarial base rate for the plan may be adjusted only to reflect the case characteristics and family composition of the small employer, and the class of business to which the small employer is assigned. The adjustments to the base rate must be objective and meet sound actuarial standards.

(a) Small employer insurers shall apply case characteristics consistently with respect to all small employers within a class of business.

(b) Adjustments due to family composition shall be applied consistently with respect to all small employers across all classes of business.

(c) The maximum adjustment to the actuarial base rate, plus or minus, due to class of business is ten percent of the actuarial base rate.
The index rate for a rating period for any class of business may not exceed the index rate for any other class of business by more than twenty percent. The provisions of this item do not apply to a class of business if all of the following apply:

(a) The class of business is one for which the insurer does not reject, and never has rejected, small employers included within the definition of employers eligible for the class of business or otherwise eligible employees and dependents who enroll on a timely basis, based upon their claim experience or health status.

(b) The insurer does not transfer involuntarily, and never has involuntarily transferred, a health insurance plan into or out of the class of business.

(c) The class of business is currently available for purchase.

(2) For a class of business, the premium rates charged during a rating period to small employers with similar case characteristics for the same or similar coverage, or the rates which could be charged to these employers under the rating system for that class of business, may not vary from the index rate by more than twenty-five percent of the index rate.

(3) The percentage increase in the renewal premium rate charged to a small employer for a new rating period may not exceed the sum of:

(a) the percentage change in the actuarial base new business premium rate measured from the first day of the prior rating period to the first day of the new rating period; and. In the case of a class of business

(b) an adjustment, not to exceed fifteen percent annually and adjusted pro rata for rating periods of less than one year, due to the claim experience, health status, or duration of coverage of the employees or dependents of the small employer as determined from the insurer's rate manual for the class of business.

(c) any adjustment due to change in coverage, family composition, or change in the case characteristics of the small employer, subject to the limitations imposed by item (1) of this section and as determined from the insurer's rate manual for the class of business.

(4)(3) In the case of health insurance plans issued prior to before January 1, 1995, the effective date of this subarticle a the percentage increase in the renewal premium rate for a new rating period may also include an adjustment for claim experience, health status, or duration of coverage, not to exceed:

(a) twenty percent of the actuarial base rate for plans renewed during calendar year 1995; and

(b) ten percent of the actuarial base rate for plans renewed during calendar year 1996.

Effective January 1, 1997, all renewal premium rates must comply with the provisions of item (1) of this subsection. exceed the ranges described in subsection (A)(1) or (2) for five years following the effective date of this subarticle until January 1, 1997. In that case, the percentage increase in the premium rate charged to a small employer in such a class of business for a new rating period may not exceed the sum of:

(a) the percentage change in the new business premium rate measured from the first day of the prior rating period to the first day of the new rating period. In the case of a class of business for which the small employer insurer is not issuing new policies, the insurer shall use the percentage change in the base premium rate.

(b) any adjustment due to change in coverage or change in the case characteristics of the small employer as determined from the insurer's rate manual for the class of business.

(B) Nothing in this section is intended to affect the use by a small employer insurer of legitimate rating factors other than claim experience, health status or duration of coverage in the determination of premium rates. Small employer insurers shall apply rating factors, including case characteristics, consistently with respect to all small employers in a class of business.

(1) A small employer insurer may not transfer involuntarily a small employer into or out of a class of business.; and

(2) A small employer insurer may not offer to transfer involuntarily a small employer into or out of a class of business, unless the offer is made to transfer all small employers in the class of business without regard to case characteristics, claim experience, health status, or duration since issue.

(C) The commissioner may approve wellness incentives developed by small employer insurers that allow premium reductions from the rating limitations of this section. Wellness incentives to be considered may include, but are not limited to, smoking status, participation in physical fitness activities, and dietary habits."/

Amend further, as and if amended, by striking SECTION 21 in its entirety, beginning at line 6 on page 27 and ending at line 11 on page 27, and inserting:

/SECTION 21. The General Assembly finds and declares that it is in the public interest to study other specific health reform ideas. To that end, there is hereby created a committee on Health Reform to be appointed by the Governor, whose task will be to issue a report to the Governor on:

(1) the benefits and drawbacks to establish accountable health plans, voluntary health insurance purchasing cooperatives, and rating methodologies; and

(2) the benefits and drawbacks to passage of state-enabling legislation for the establishment of small employer medical IRA's.

The appointees to this committee shall include, at minimum, two health insurance carriers actively engaged in small group business in South Carolina, and one independent health insurance agent.

The committee shall issue a report to the Governor and General Assembly by January 1, 1995./

Amend further, as and if amended, by striking SECTION 22 in its entirety, beginning at line 13 on page 27 and ending at line 14 on page 27, and inserting:

/SECTION 22. If any provision of this act or the application thereof to any person or circumstances is for any reason held to be invalid, the remainder of the act and the application of its provisions to other persons or circumstances shall not be affected thereby./

Amend further, as and if amended, by adding SECTION 23 which shall read as follows:

Renumber sections to conform.

Amend title to conform.

Reps. NEILSON and RICHARDSON explained the amendment.

Rep. FAIR spoke against the amendment.

Rep. NEILSON spoke in favor of the amendment.

The question then recurred to the adoption of the amendment.

Rep. FAIR demanded the yeas and nays, which were not ordered.

The amendment was then adopted by a division vote of 78 to 2.

Rep. A. YOUNG proposed the following Amendment No. 4 (Doc Name L:\council\legis\amend\CYY\15832AC.94), which was adopted.

Amend the bill, as and if amended, page 541-22, by deleting Section 38-71- 730(1)(b)(i) on lines 43-44 and inserting:

/(i) It contains at least one thousand eligible employees./

Amend title to conform.

Rep. NEILSON explained the amendment.

The amendment was then adopted.

The Bill, as amended, was read the second time and ordered to third reading.

On motion of Rep. NEILSON, with unanimous consent, it was ordered that S. 541 be read the third time tomorrow.

Please record in the Journal my "no" vote on S. 541.

"The Bill is mandating to all small group insurers that the insurance company must insure anyone who makes application to their company. This similar circumstance in the automobile insurance market has created a host of problems including excessive premiums."
Thanks,

Rep. MICHAEL L. FAIR

The following Bill was taken up.

H. 4124 -- Rep. Gonzales: A BILL TO AMEND SECTION 5-7-80, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO ORDINANCES FOR UPKEEP OF PROPERTY IN A MUNICIPALITY, SO AS TO PROVIDE THAT THE COST TO THE MUNICIPALITY FOR CORRECTING PROPERTY CONDITIONS IS A LIEN WITH THE SAME PRIORITY AS MUNICIPAL TAXES.

The Medical, Military, Public and Municipal Affairs Committee proposed the following Amendment No. 1 (Doc Name L:\council\legis\amend\CYY\15575AC.94), which was adopted.

Amend the bill, as and if amended, by adding:

/SECTION 2. Section 31-15-30(6) of the 1976 Code is amended to read:

"(6) That the amount of the cost of such repairs, alterations or improvements, vacating and closing or removal or demolition by the public officer shall be a lien against the real property upon which such cost was incurred and shall be collectable in the same manner as municipal taxes and has the same priority as municipal taxes."/

Renumber sections to conform.

Amend title to conform.

Rep. GONZALES explained the amendment.

The amendment was then adopted.

Rep. GONZALES proposed the following Amendment No. 2 (Doc Name L:\council\legis\amend\CYY\15784AC.94), which was adopted.

Amend the bill, as and if amended, by striking all after the enacting words and inserting:

/SECTION 1. Section 5-7-80(2) of the 1976 Code is amended to read:

"(2) The municipality may provide by ordinance for notification to the owner of conditions needing correction, may require that the owner take such action as is necessary to correct the conditions, may provide the terms and conditions under which employees of the municipality or any person employed for that purpose may go upon the property to correct the conditions and may provide that the cost of such shall become a lien upon the real estate and shall be collectable in the same manner as municipal

SECTION 2. Section 31-15-30(6) of the 1976 Code is amended to read:

"(6) That the amount of the cost of such repairs, alterations or improvements, vacating and closing or removal or demolition by the public officer shall be a lien against the real property upon which such cost was incurred and shall be collectable in the same manner as municipal taxes and has the same priority as municipal taxes upon the filing of a final order of a public officer and

(1) its entry in the judgment rolls of the clerk of court or

(2) the recording of notice of the lien with the Register of Mesne Conveyances."

SECTION 3. Section 31-15-330(6) of the 1976 Code is amended to read:

"(6) That the amount of the cost of such repairs, alterations or improvements, vacating and closing or removal or demolition by the public officer shall be a lien against the real property upon which such cost was incurred and shall be collectable in the same manner as county taxes and has the same priority as county taxes upon the filing of a final order of a public officer and

(1) its entry in the judgment rolls of the clerk of court or

(2) the recording of the lien with the Register of Mesne Conveyances."

SECTION 4. This act takes effect upon approval by the Governor and applies to all liens existing on the effective date of this act or obtained after the effective date of this act./

Renumber sections to conform.

Amend title to conform.

The Bill, as amended, was read the second time and ordered to third reading.

Rep. GONZALES asked unanimous consent that H. 4124 be read a third time tomorrow.

Rep. DAVENPORT objected.

Rep. McTEER moved that the House recur to the morning hour, which was agreed to.

The following Bill and Joint Resolution were introduced, read the first time, and referred to appropriate committees:

H. 5006 -- Reps. Hutson, A. Young and G. Bailey: A BILL TO PROVIDE THAT THE COMMISSIONERS OF ELECTION FOR DORCHESTER COUNTY MUST BE APPOINTED BY THE DORCHESTER COUNTY COUNCIL, AND PROVIDE FOR THE MANNER IN WHICH THEY MUST BE APPOINTED.

On motion of Rep. A. YOUNG, with unanimous consent, the Bill was ordered placed on the Calendar without reference.

H. 5007 -- Reps. Walker, Davenport and Allison: A JOINT RESOLUTION TO PROVIDE THAT, FOR THE 1993-94 SCHOOL YEAR, SCHOOL DISTRICT ONE IN SPARTANBURG COUNTY IS EXEMPTED FROM THE REQUIREMENT THAT SCHOOL DAYS MISSED MUST BE MADE UP AS A RESULT OF COMPLICATIONS RESULTING FROM A SEVERE WINTER STORM.

On motion of Rep. WALKER, with unanimous consent, the Joint Resolution was ordered placed on the Calendar without reference.

On motion of Rep. A. YOUNG, with unanimous consent, it was ordered that H. 5006 be read the second time tomorrow.

On motion of Rep. WALKER, with unanimous consent, it was ordered that H. 5007 be read the second time tomorrow.

Rep. RISER moved to adjourn debate upon the following Bill until Wednesday, April 6, which was adopted.

H. 4838 -- Reps. Quinn, Wright and Riser: A BILL TO AMEND ACT 387 OF 1963, AS AMENDED, RELATING TO THE CREATION OF THE IRMO FIRE DISTRICT IN LEXINGTON COUNTY, SO AS TO REDESIGNATE THE BOUNDARIES OF THE DISTRICT, PROVIDE FOR THE ELECTION OF THE GOVERNING BOARD, AND AT THE TIME OF THE GENERAL ELECTION IN 1994, PROVIDE FOR THE TERMS OF THE MEMBERS OF THE BOARD, CHANGE THE POWERS OF THE BOARD, PROVIDE THAT THE PROPERTY OF

The following Bill was taken up.

H. 4403 -- Reps. Holt, Harrelson, Harvin and Mattos: A BILL TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 50-1-290 SO AS TO PROVIDE REQUIREMENTS FOR RAISED DEER STANDS USED AT DEER HUNTS OFFERED TO THE PUBLIC BY THE DEPARTMENT OF NATURAL RESOURCES.

Reps. FARR, DELLENEY, LITTLEJOHN, McCRAW and PHILLIPS proposed the following Amendment No. 1 (Doc Name L:\council\legis\amend\BBM\9080BDW.94), which was ruled out of order.

Amend the bill, as and if amended, by adding an appropriately numbered SECTION to read:

/SECTION . Beginning September 1, 1994, and expiring April 1, 1995, in addition to those seasons and times permitted in Section 50-11-120 of the 1976 Code, rabbits may be hunted with dogs, but not taken, in Game Zones 1, 2, and 4 only, September first through January first on private lands only, between sunset and midnight and January second through March first between sunset and midnight on private lands and Wildlife Management Area lands./

Renumber sections to conform.

Amend title to conform.

Rep. FARR explained the amendment.

Rep. HOLT raised the Point of Order that Amendment No. 1 was out of order as it was not germane.

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