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TO ENACT THE "HEALTH CARE ACCESSIBILITY FOR YOUNG AMERICANS ACT", INCLUDING PROVISIONS, TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 38-71-295 SO AS TO PROVIDE HEALTH INSURANCE COVERAGE UNDER A PARENT'S POLICY FOR CERTAIN MILITARY PERSONNEL ON TERMINATION OF ACTIVE DUTY STATUS, AMONG OTHER THINGS; BY ADDING SECTION 38-71-300 SO AS TO DEFINE THE TERMS "DEPENDENT" AND "ELIGIBLE DEPENDENT" FOR HEALTH INSURANCE POLICIES ISSUED IN THIS STATE; TO AMEND SECTION 38-71-350, RELATING TO THE REQUIRED CONTINUATION OF COVERAGE FOR HANDICAPPED CHILDREN UNDER A PARENT'S INDIVIDUAL POLICY, SO AS TO MAKE CONFORMING CHANGES; TO AMEND SECTION 38-71-360, RELATING TO THE REQUIRED CONTINUATION OF COVERAGE FOR NONHANDICAPPED CHILDREN UNDER A PARENT'S INDIVIDUAL POLICY, SO AS TO MAKE CONFORMING CHANGES; TO AMEND SECTION 38-71-780, RELATING TO THE REQUIRED CONTINUATION OF COVERAGE TO HANDICAPPED AND DEPENDENT CHILDREN UNDER A PARENT'S GROUP POLICY, SO AS TO MAKE CONFORMING CHANGES; AND TO AMEND SECTION 38-71-1330, RELATING TO DEFINITIONS CONCERNING SMALL EMPLOYER HEALTH INSURANCE, SO AS TO MAKE CONFORMING CHANGES.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. This act is known and may be cited as the "Health Care Accessibility for Young Americans Act".
SECTION 2. Article 1, Chapter 71, Title 38 of the 1976 Code is amended by adding:
"Section 38-71-295. (A) Notwithstanding another provision of this chapter or regulation promulgated pursuant to this chapter, an insurance policy issued pursuant to a provision of this chapter must provide coverage to the child of a policyholder if the child has served at least six months of active duty in the National Guard of this State, the United States armed services, or reserves upon the termination of the child's active duty status, except where the child's active duty status terminates due to a dishonorable discharge.
(B) Coverage under this section:
(1) is cumulative to the rights available under section 38-71-300;
(2) begins on the date of the child's honorable discharge from active duty and must extend for no more than:
(a) twenty-four months if the child has served at least six months of active duty; or
(b) thirty-six months if the child has served twelve months of active duty;
(3) terminates if the child:
(a) marries;
(b) receives coverage under another health insurance policy;
(c) returns to active duty status;
(d) is dishonorably discharged from military service; or
(e) attains the age of thirty-three years."
SECTION 3. Article 1, Chapter 71, Title 38 of the 1976 Code is amended by adding:
"Section 38-71-300. Notwithstanding another provision of this chapter or regulation promulgated pursuant to this chapter, as used in this chapter, 'dependent' or 'eligible dependent' means:
(1) a spouse of a policyholder or subscriber;
(2) an unmarried child under the age of twenty-five years;
(3) an unmarried child under the age of thirty who is attending an accredited college, university, trade school, or secondary school on a full-time basis and is primarily dependent upon his parent who is a policy holder or subscriber for financial support;
(4) an unmarried child who is incapable of self-support because of mental retardation or physical handicap and is primarily dependent upon his parent who is a policyholder or subscriber for financial support; and
(5) an unmarried child who has served on active duty in the National Guard of this State or the United States armed services or reserves as provided in Section 38-71-295."
SECTION 4. Section 38-71-350 of the 1976 Code is amended to read:
"Section 38-71-350. An individual hospital or medical expense insurance policy, hospital service plan contract, or medical service plan contract delivered or issued for delivery in this State, which provides that coverage of a dependent child terminates upon attainment of the limiting age for dependent children specified in the policy or contract and must be subject to Section 38-71-300 shall also provide in substance that attainment of the limiting age does not operate to terminate the coverage of the child while the child is and continues to be both (a) incapable of self-sustaining employment by reason of mental retardation or physical handicap and (b) chiefly dependent upon the policyholder or subscriber for support and maintenance, so long as proof of the incapacity and dependency is furnished to the insurer by the policyholder or subscriber within thirty-one days of the child's attainment of the limiting age and subsequently as may be required by the insurer but not more frequently than annually after the two-year period following the child's attainment of the limiting age."
SECTION 5. Section 38-71-360 of the 1976 Code is amended to read:
"Section 38-71-360. An individual hospital, medical, or surgical expense incurred insurance policy, hospital service plan contract, or medical service plan contract, other than a limited classification policy, delivered or issued for delivery in this State, which provides that coverage of a nonhandicapped dependent child terminates upon attainment of the limiting age for the child as specified in the policy or contract and must be subject to Section 38-71-300, shall also shall contain a provision to the effect that upon the attainment of the limiting age the child is entitled to have issued to him, without evidence of insurability, upon application made to the insurer within thirty days following the attainment of the age, and upon payment of the appropriate premium, an individual policy of accident and health insurance. The policy shall must provide the coverage then being issued by the insurer, which is closest to, but not greater than, the terminated coverage. Any A probationary or waiting period set forth in the policy must be considered as met to the extent coverage was in force under the prior policy. For purposes of this section, 'limited classification policy' means an accident-only policy, a limited accident policy, a travel accident policy, or a specified-disease policy."
SECTION 6. Section 38-71-780 of the 1976 Code is amended to read:
"Section 38-71-780. A group hospital or medical expense insurance policy, hospital service plan contract, or medical service plan contract delivered or issued for delivery in this State, which provides that coverage of a dependent child of an employee or other member of the coverage group terminates upon attainment of the limiting age for dependent children specified in the policy or contract and must be subject to Section 38-71-300 shall also provide in substance that attainment of the limiting age does not operate to terminate the coverage of the child while the child is and continues to be both (a) incapable of self-sustaining employment by reason of mental retardation or physical handicap, and (b) chiefly dependent upon the employee or member for support and maintenance, as long as proof of the incapacity and dependency is furnished to the insurer by the employee or member within thirty-one days of the child's attainment of the limiting age and subsequently as may be required by the insurer, but not more frequently than annually after the two-year period following the child's attainment of the limiting age."
SECTION 7. Section 38-71-1330(5) of the 1976 Code is amended to read:
"(5) 'Dependent' means a spouse, an unmarried child under the age of nineteen years, an unmarried child who is a full-time student between the ages of nineteen and twenty-two and who is financially dependent upon the parent, and an unmarried child of any age who is medically certified as disabled and dependent upon the parent a dependent or eligible dependent as defined in Section 38-71-300."
SECTION 8. If any section, subsection, paragraph, subparagraph, sentence, clause, phrase, or word of this act is for any reason held to be unconstitutional or invalid, such holding shall not affect the constitutionality or validity of the remaining portions of this act, the General Assembly hereby declaring that it would have passed this act, and each and every section, subsection, paragraph, subparagraph, sentence, clause, phrase, and word thereof, irrespective of the fact that any one or more other sections, subsections, paragraphs, subparagraphs, sentences, clauses, phrases, or words hereof may be declared to be unconstitutional, invalid, or otherwise ineffective.
SECTION 9. This act takes effect upon approval by the Governor.
This web page was last updated on Monday, June 22, 2009 at 2:23 P.M.