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State of South
Dakota
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EIGHTY-THIRD
SESSION LEGISLATIVE ASSEMBLY, 2008 |
| 400P0687 | HOUSE BILL NO. 1318 |
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Introduced by:
The Committee on Commerce at the request of the Office of the Governor
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FOR AN ACT ENTITLED, An Act to
provide options for those who elect continuation of health
insurance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 58-18-7.18 be amended to read as follows:
58-18-7.18. Continuation coverage shall be the same coverage as is available to any similarly situated beneficiary under the plan with respect to whom a qualifying event has not occurred. If coverage is modified under the plan for any group of similarly situated beneficiaries who are not under continuation, such coverage shall also be modified for those continuing coverage in the same manner as for all individuals who are qualified beneficiaries under the plan pursuant to the continuation requirements of this chapter in connection with such group.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 58-18-7.18 be amended to read as follows:
58-18-7.18. Continuation coverage shall be the same coverage as is available to any similarly situated beneficiary under the plan with respect to whom a qualifying event has not occurred. If coverage is modified under the plan for any group of similarly situated beneficiaries who are not under continuation, such coverage shall also be modified for those continuing coverage in the same manner as for all individuals who are qualified beneficiaries under the plan pursuant to the continuation requirements of this chapter in connection with such group.
Any insurer providing continuation coverage pursuant to
§
58-18-7.5 or pursuant to any federal
requirement applicable to employer group plans shall offer to all beneficiaries who are eligible to elect
to continue coverage the option to decrease benefits of the continued coverage. The options shall
include, at a minimum, those coverage options available to beneficiaries who initially enroll into the
coverage if the options decrease coverage or a carrier may offer a standardized plan to all those
eligible for continuation that contains similar benefits to the beneficiaries prior coverage but at a higher
deductible or other reduced benefit features.
Section 2.
That
§
58-18C-5
be amended to read as follows:
58-18C-5.
Any employee may exercise the right to continuation within thirty days of receipt of
due notice of termination of coverage of the group and upon payment of premiums from the date of
termination.
Any insurer providing continuation coverage pursuant to
§
58-18C-1 shall offer to all beneficiaries
who are eligible to elect to continue coverage the option to decrease benefits of the continued
coverage. The options shall include, at a minimum, those coverage options that would have been
otherwise available to employees or dependents who initially enrolled into the coverage if the options
decrease coverage or a carrier may offer a standardized plan to all those eligible for continuation that
contains similar benefits to the beneficiaries prior coverage but at a higher deductible or other reduced
benefit features.
Section 3. Nothing in this Act may be construed to limit an insurer's ability to use the experience from those persons who have continued coverage pursuant to this Act for rating purposes for the employer group from which coverage was continued. An insurer is not required to offer an option that is not available in the market for the policy form or forms from which continuation is being offered. This Act applies to any person electing continuation coverage on or after July 1, 2008.
Section 3. Nothing in this Act may be construed to limit an insurer's ability to use the experience from those persons who have continued coverage pursuant to this Act for rating purposes for the employer group from which coverage was continued. An insurer is not required to offer an option that is not available in the market for the policy form or forms from which continuation is being offered. This Act applies to any person electing continuation coverage on or after July 1, 2008.
