Small Group Health Insurance Coverage Law

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In 1992, small group rating went into effect. These rating reforms, however, did not address all of the issues plaguing the small group health market, and did not adequately stabilize health insurance premium rates for the small group market.

In 1994, significant changes were made to South Carolina's small group market. The South Carolina Small Employer Health Insurance Availability Act essentially allowed for accessibility, availability and portability of health care coverage to small employers.

Effective July 1, 1995 in South Carolina, small group carriers were required to guarantee issue two statutory plans - basic and standard.

Effective July 1, 1997, HIPAA addressed these same issues and in some situations applied additional restrictions, which affected South Carolina laws in both the small and large group market. These include guarantee issue of all plans offered to small employers, and the inclusion of portability and renewability provisions to both small and large group plans.

Also in 1997, the Small Employer Availability Act was modified to allow some rating flexibility. Group size was added as a rating characteristic. The allowable case characteristics for rating purposes now include age, gender, geographic area, industry, family composition and group size.

Small Employer Health Insurance Availability Act

Palmetto Project
P.O. Box 31075
Charleston, SC 29417
Phone: 843.577.4122
E-mail: charleston@palmettoproject.org

S.C. Budget & Control Board
Office of Research and Statistics
1919 Blanding St.
Columbia, SC 29201