Committee Report

February 28, 2024

 

H. 4218

 

Introduced by Reps. Pope, Sandifer, Carter, Kirby, Jefferson and Hardee

 

S. Printed 02/28/24--H.                                                                           [SEC 3/1/2024 1:17 PM]

Read the first time March 29, 2023

 

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The committee on House Labor, Commerce and Industry

To whom was referred a Bill (H. 4218) to amend the South Carolina Code of Laws by adding Sections 38-63-110, 38-65-130, 38-71-300, and 38-72-110 all so as to define terms and to prohibit certain insurers, etc., respectfully

Report:

That they have duly and carefully considered the same, and recommend that the same do pass with amendment:

 

    Amend the bill, as and if amended, SECTION 1, by striking Section 38-63-110(B), (C), and (D) and inserting:

    (B) A life insurer shall not require an individual to whom the insurer provides life insurance coverage, or an individual who applies for life insurance coverage, to take a genetic test as a precondition of insurability and shall not require the complete genome sequencing of an individual's DNA.

    (C) A life insurer shall not request, obtain, or use an individual's genetic information for underwriting purposes without first obtaining the individual's signed, written consent.

    (D) Provided that an individual's signed, written consent is obtained, no life insurer authorized to transact insurance in this State may cancel, limit, or deny coverage based solely on an individual's genetic information.

    (E) This section does not apply to the underwriting or issuance of an accident-only policy, hospital indemnity or fixed indemnity policy, dental policy, or vision policy or any other actions of an insurer directly related to an accident-only policy, hospital indemnity or fixed indemnity policy, dental policy, or vision policy.

    (F) Nothing in this section may be construed as preventing a life insurer from accessing an individual's medical record as part of an application exam. Nothing in this section prohibits a life insurer from considering a medical diagnosis included in an individual's medical record, even if a diagnosis was made based on the results of genetic testing.

Amend the bill further, SECTION 2, by striking Section 38-65-130(B), (C), and (D) and inserting:

    (B) A life insurer shall not require an individual to whom the insurer provides life insurance coverage, or an individual who applies for life insurance coverage, to take a genetic test as a precondition of insurability and shall not require the complete genome sequencing of an individual's DNA.

    (C) A life insurer shall not request, obtain, or use an individual's genetic information for underwriting purposes without first obtaining the individual's signed, written consent.

    (D) Provided that an individual's signed, written consent is obtained, no life insurer authorized to transact insurance in this State may cancel, limit, or deny coverage based solely on an individual's genetic information.

    (E) This section does not apply to the underwriting or issuance of an accident-only policy, hospital indemnity or fixed indemnity policy, dental policy, or vision policy or any other actions of an insurer directly related to an accident-only policy, hospital indemnity or fixed indemnity policy, dental policy, or vision policy.

    (F) Nothing in this section may be construed as preventing a life insurer from accessing an individual's medical record as part of an application exam. Nothing in this section prohibits a life insurer from considering a medical diagnosis included in an individual's medical record, even if a diagnosis was made based on the results of genetic testing.

Amend the bill further, SECTION 3, by striking Section 38-71-300(B) and (C) and inserting:

    (B) A health insurer shall not require an individual to whom the insurer provides health insurance coverage, or an individual who applies for health insurance coverage, to take a genetic test as a precondition of insurability and shall not require the complete genome sequencing of an individual's DNA.

    (C) A health insurer shall not request, obtain, or use an individual's genetic information for underwriting purposes without first obtaining the individual's signed, written consent.

    (D) Provided that an individual's signed, written consent is obtained, no accident and health insurer authorized to transact insurance in this State may cancel, limit, or deny coverage based solely on an individual's genetic information.

    (E) This section does not apply to the underwriting or issuance of an accident-only policy, hospital indemnity or fixed indemnity policy, dental policy, or vision policy or any other actions of an insurer directly related to an accident-only policy, hospital indemnity or fixed indemnity policy, dental policy, or vision policy.

Amend the bill further, SECTION 4, by striking Section 38-72-110(B), (C), and (D) and inserting:

    (B) A long-term care insurer shall not require an individual to whom the insurer provides long-term care insurance coverage, or an individual who applies for long-term care insurance coverage, to take a genetic test as a precondition of insurability and shall not require the complete genome sequencing of an individual's DNA.

    (C) A long-term care insurer shall not request, obtain, or use an individual's genetic information for underwriting purposes without first obtaining the individual's signed, written consent.

    (D) Provided that an individual's signed, written consent is obtained, no long-term care insurer authorized to transact insurance in this State may cancel, limit, or deny coverage based solely on an individual's genetic information.

    (E) This section does not apply to the underwriting or issuance of an accident-only policy, hospital indemnity or fixed indemnity policy, dental policy, or vision policy or any other actions of an insurer directly related to an accident-only policy, hospital indemnity or fixed indemnity policy, dental policy, or vision policy.

    (F) Nothing in this section may be construed as preventing a long-term care insurer from accessing an individual's medical record as part of an application exam. Nothing in this section prohibits a life insurer from considering a medical diagnosis included in an individual's medical record, even if a diagnosis was made based on the results of genetic testing.

 

Renumber sections to conform.

Amend title to conform.

 

W.E. "BILL" SANDIFER for Committee.

 

 

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

This bill prohibits changes to insurance coverage or premiums as a result of genetic information for life insurers, accident & health insurers, and long-term care insurers.

 

Department of Insurance. DOI supervises and monitors insurance companies in South Carolina and would be responsible for enforcement of this bill. The agency indicates that this bill's changes will be managed by existing staff and resources with existing appropriations. Therefore, this bill will have no expenditure impact for DOI.

 

Public Employee Benefit Authority. PEBA administers the State Health Plan for South Carolina. PEBA indicates that the State Health Plan does not use genetic information in any way that would be prohibited by this bill and would not change the operations of any plan that they administer. Therefore, this bill will have no expenditure impact for PEBA.

 

 

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

 

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A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTIONS 38-63-110, 38-65-130, 38-71-300, AND 38-72-110 ALL SO AS TO DEFINE TERMS AND TO PROHIBIT CERTAIN INSURERS FROM CANCELING, LIMITING, OR DENYING COVERAGE, OR ESTABLISHING DIFFERENTIALS IN PREMIUM RATES BASED UPON GENETIC INFORMATION.

 

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

 

SECTION 1.  Article 1, Chapter 63, Title 38 of the S.C. Code is amended by adding:

 

    Section 38-63-110. (A) For purposes of this section:

       (1) "Genetic information" means information derived from genetic testing to determine the presence or absence of variations or mutations, including carrier status, in an individual's genetic material or genes that are scientifically or medically believed to cause a disease, disorder, or syndrome, or are associated with a statistically increased risk of developing a disease, disorder, or syndrome, which is asymptomatic at the time of testing. Such testing does not include routine physical examinations or chemical, blood, or urine analysis, unless conducted purposefully to obtain genetic information, or answer questions regarding family history.

       (2) "Life insurer" is an insurer providing life insurance, as defined in Section 38-1-20(35).

    (B) In the absence of a diagnosis or condition related to genetic information, no life insurer authorized to transact insurance in this State may cancel, limit, or deny coverage, or establish differentials in premium rates based on genetic information.

    (C) This section does not apply to the underwriting or issuance of an accident-only policy, hospital indemnity or fixed indemnity policy, dental policy, or vision policy or any other actions of an insurer directly related to an accident-only policy, hospital indemnity or fixed indemnity policy, dental policy, or vision policy.

    (D) Nothing in this section may be construed as preventing a life insurer from accessing an individual's medical record as part of an application exam. Nothing in this section prohibits a life insurer from considering a medical diagnosis included in an individual's medical record, even if a diagnosis was made based on the results of genetic testing.

 

SECTION 2.  Article 1, Chapter 65, Title 38 of the S.C. Code is amended by adding:

 

    Section 38-65-130. (A) For purposes of this section:

       (1) "Genetic information" means information derived from genetic testing to determine the presence or absence of variations or mutations, including carrier status, in an individual's genetic material or genes that are scientifically or medically believed to cause a disease, disorder, or syndrome, or are associated with a statistically increased risk of developing a disease, disorder, or syndrome, which is asymptomatic at the time of testing. Such testing does not include routine physical examinations or chemical, blood, or urine analysis, unless conducted purposefully to obtain genetic information, or answer questions regarding family history.

       (2) "Life insurer" is an insurer providing life insurance, as defined in Section 38-1-20(35).

    (B) In the absence of a diagnosis or condition related to genetic information, no life insurer authorized to transact insurance in this State may cancel, limit, or deny coverage, or establish differentials in premium rates based on genetic information.

    (C) This section does not apply to the underwriting or issuance of an accident-only policy, hospital indemnity or fixed indemnity policy, dental policy, or vision policy or any other actions of an insurer directly related to an accident-only policy, hospital indemnity or fixed indemnity policy, dental policy, or vision policy.

    (D) Nothing in this section may be construed as preventing a life insurer from accessing an individual's medical record as part of an application exam. Nothing in this section prohibits a life insurer from considering a medical diagnosis included in an individual's medical record, even if a diagnosis was made based on the results of genetic testing.

 

SECTION 3.  Article 1, Chapter 71, Title 38 of the S.C. Code is amended by adding:

 

    Section 38-71-300. (A) For purposes of this section:

       (1) "Genetic information" means information derived from genetic testing to determine the presence or absence of variations or mutations, including carrier status, in an individual's genetic material or genes that are scientifically or medically believed to cause a disease, disorder, or syndrome, or are associated with a statistically increased risk of developing a disease, disorder, or syndrome, which is asymptomatic at the time of testing. Such testing does not include routine physical examinations or chemical, blood, or urine analysis, unless conducted purposefully to obtain genetic information, or answer questions regarding family history.

       (2) "Health insurer" is an insurer providing accident and health insurance, as defined in Section 38-1-20(1).

    (B) In the absence of a diagnosis or condition related to genetic information, no accident and health insurer authorized to transact insurance in this State may cancel, limit, or deny coverage, or establish differentials in premium rates based on genetic information.

    (C) This section does not apply to the underwriting or issuance of an accident-only policy, hospital indemnity or fixed indemnity policy, dental policy, or vision policy or any other actions of an insurer directly related to an accident-only policy, hospital indemnity or fixed indemnity policy, dental policy, or vision policy.

 

SECTION 4.  Chapter 72, Title 38 of the S.C. Code is amended by adding:

 

    Section 38-72-110. (A) For purposes of this section:

       (1) "Genetic information" means information derived from genetic testing to determine the presence or absence of variations or mutations, including carrier status, in an individual's genetic material or genes that are scientifically or medically believed to cause a disease, disorder, or syndrome, or are associated with a statistically increased risk of developing a disease, disorder, or syndrome, which is asymptomatic at the time of testing. Such testing does not include routine physical examinations or chemical, blood, or urine analysis, unless conducted purposefully to obtain genetic information, or answer questions regarding family history.

       (2) "Long-term care insurer" is an insurer providing long-term care insurance, as defined in Section 38-72-40(1).

    (B) In the absence of a diagnosis or condition related to genetic information, no long-term care insurer authorized to transact insurance in this State may cancel, limit, or deny coverage, or establish differentials in premium rates based on genetic information.

    (C) This section does not apply to the underwriting or issuance of an accident-only policy, hospital indemnity or fixed indemnity policy, dental policy, or vision policy or any other actions of an insurer directly related to an accident-only policy, hospital indemnity or fixed indemnity policy, dental policy, or vision policy.

    (D) Nothing in this section may be construed as preventing a long-term care insurer from accessing an individual's medical record as part of an application exam. Nothing in this section prohibits a life insurer from considering a medical diagnosis included in an individual's medical record, even if a diagnosis was made based on the results of genetic testing.

 

SECTION 5.  This act takes effect upon approval by the Governor.

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