Governor Sanford recently signed legislation that will allow small businesses to pool together to purchase competitive health insurance. Traditionally, small businesses have been crippled in efforts to offer their employees health insurance because of the high costs of purchasing insurance in small numbers. The general rule is that a group with a larger number of participants can purchase insurance less expensively than smaller groups. This legislation is intended to help small businesses in many ways. It makes it easier for them to assist their employees with exorbitant healthcare costs. Also, this allows the “little guy” to attract quality personnel necessary to compete in the ever-changing global market. Small businesses are our economy’s backbone; employing approximately 70% of our citizens.
Here is an excerpt from the Department of Insurance’s plan as to how they will implement the new law:
An entity interested in serving as a cooperative shall submit an application to the South Carolina Department of Insurance for approval. The following information must be attached to the application for review: 1) a business plan; 2) biographical affidavits of the board of directors; 3) operating bylaws; 4) evidence of financial security; 5) membership criteria; 6) management agreements; 7) evidence of approval by the Secretary of State’s Office; and 8) any other information deemed necessary for the Department to appropriately evaluate the application. In considering the application, the Department will evaluate whether the business plan and other application and organizational documents comply with applicable state and federal law.
Details will soon follow on the Department’s Website