Our lawyers-attorneys can advise you or your nonprofit organization on the newly enacted Health Group Cooperative Act and other applicable South Carolina and federal law.
South Carolina legislation now authorizes the creation of Health Group Cooperatives, nonprofit organizations providing shared group insurance services to members within one or more contiguous counties in the state.
Health Group Cooperatives are registered with the South Carolina Department of Insurance and may purchase for its members health insurance and other supplemental health coverages such as dental, vision, and long-term care. A Health Group Cooperative, however, much establish separate rates for its services, distinguishable from both health insurance premiums and any regular membership fees.
An application to become a Health Group Cooperative must also include a business plan, biographical affidavits of the board of directors, operating bylaws, evidence of financial security, membership criteria, management agreements, evidence of approval by the South Carolina Secretary of State's Office, and any other information deemed necessary by the South Carolina Department of Insurance.
Health Group Cooperatives must also comply with other applicable South Carolina and federal law.
Qualified members can include any person, firm, corporation, partnership, association, or employer, as defined in Section 3(5) of the Employee Retirement Income Security Act of 1974, that is actively engaged in business that, on at least fifty percent of its working days during the preceding calendar year, employed no more than fifty eligible employees or employed an average of not more than fifty employees on business days during the preceding calendar year and who employeed at lest one employe on the first day of the plan year. A Health Group Cooperative also may, at its option, accept for membership sole proprietors regardless of whether they have employees or not.
To find out more information on how you or your nonprofit organization can form a Health Group Cooperative, please contact a lawyer-attorney with our firm or schedule an appointment now.