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 โmost-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 billโs sponsor, admits itโs a long shot because Blue Cross Blue Shield has โa pretty significant lobbying arm.โ
โThegoal is really to make the private health insurance market more competitive,โ he said. โWith competition, youโll 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 โan appropriate and legal tool.โ
Embry-Tauten said the companyโs contracts with health care providers are confidential, but โthe 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.
โThis is the long-awaited first step,โ Knapp said. โWe will have a better sense of (the billโs future) after (today).โ
Original Article:ย http://www.postandcourier.com/article/20130320/PC16/130329968