Published on March 20, 2013

By Lauren Sausser, The Post and Courier

South Carolinians covered by companies other than Blue Cross Blue Shield could see lower health insurance premiums if a proposed bill is signed into state law.

Senate Bill 145 is attempting to even the playing field among competing companies in astate that is dominated by one health insurer.

BlueCross Blue Shield writes almost 45 percent of the health and accident insurance premiums here.

Thenext largest company in South Carolina, United Healthcare, claims less than 10 percent of the market share, according to the S.C. Department of Insurance.

The new bill would prohibit insurance companies from writing clauses into their contracts with health care providers that obligate doctors and hospitals to charge lower rates for patients insured by that company and equal or even higher rates for patients insured by the competition.

The Post andCourier first reported in 2011 that these clauses, known as โ€œmost-favored-nationโ€ clauses, are being investigated by the federal governmentas potentially anti-competitive.

The proposed bill will be taken up for discussion in the Senate Banking and Insurance subcommittee today โ€” the first step toward a vote by the full General Assembly.

Buteven Sen. Shane Massey, R-Edgefield, the billโ€™s sponsor, admits itโ€™s a long shot because Blue Cross Blue Shield has โ€œa pretty significant lobbying arm.โ€

โ€œThegoal is really to make the private health insurance market more competitive,โ€ he said. โ€œWith competition, youโ€™ll get lower prices and better service for consumers.โ€

PattiEmbry-Tauten, a spokeswoman for Blue Cross Blue Shield, said the company is communicating its position on the bill to the Legislature that most-favored-nation clauses are โ€œan appropriate and legal tool.โ€

Embry-Tauten said the companyโ€™s contracts with health care providers are confidential, but โ€œthe majority of our hospital contracts do not contain (most-favored-nation) agreements.โ€

Frank Knapp, president of the S.C. Small Business Chamber of Commerce, said hisorganization supports the legislation but cannot predict its fate.

โ€œThis is the long-awaited first step,โ€ Knapp said. โ€œWe will have a better sense of (the billโ€™s future) after (today).โ€

 

Original Article:ย http://www.postandcourier.com/article/20130320/PC16/130329968

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