the Department of Health and Human Services and coverage provided by selfinsured groups. (8) ‘Insurer’ is as defined in Section 3871840(16), but for purposes of this chapter excludes Medicaid Managed Care Organizations that only offer coverage to eligible individuals through programs established by the Department of Health and Human Services and organizations that only provide third party administrator services for selfinsured groups. (9) ‘Plan of operation’ means the plan of operation for the program established pursuant to this chapter and includes the initial South Carolina HealthNet plan approved by the director or his designee. (10) ‘Program’ means the South Carolina HealthNet Program. (11) ‘Resident’ means an individual who is a legal resident of the State of South Carolina as that term is defined by law. (12) ‘Small employer’ is as defined in Section 38711330(17). (13) ‘Small employer insurer’ is as defined in Section 38711330(18). (14) ‘South Carolina HealthNet Plan’ means a plan of insurance coverage that has been approved by the director or his designee for participation in the program. Section 386040. The provisions of this chapter apply only to small employer insurers and health group cooperatives. Section 386050. (A) The board consists of fifteen voting members. The director or his designee shall serve as a member of the board in an ex officio capacity for the duration of the program. The consumer advocate, as defined in Section 376602, shall serve as a member of the board for the duration of the program. The other members of the board must be selected as follows: (1) the chairman must be appointed by the Governor for a threeyear term; (2) the director shall appoint: (a) two representatives from the hospital community from a list of nominees submitted by the South Carolina Hospital Association. One must be appointed for a twoyear term and the other for a threeyear term. Subsequent terms are for three years; (b) one representative appointed from a list of nominees submitted by the South Carolina Association of Health Underwriters appointed to a oneyear term. Subsequent terms are for three years;
(3) at the time a person ceases to meet the eligibility requirements of this section. Section 3860130. (A) An insurer participating in the program shall report claims data to the program in the manner prescribed by the board. The department may specify, by bulletin, the requirements for reporting claims data and other required information to the department. (B) The board shall submit a report to the Governor, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives no later than January 1, 2014, regarding the effectiveness of the program, including any recommendations relating to the successful implementation and administration of the program. Section 3860140. The department may promulgate regulations necessary for implementation of this chapter. Section 3860150. Before termination of the program, insurers participating in the plan shall: (1) offer to continue the South Carolina HealthNet coverage for a maximum of one additional year to allow the participant the opportunity to find alternative coverage; or (2) offer to replace the South Carolina HealthNet policy with a policy underwritten by the insurer that provides coverage similar to or better than the South Carolina HealthNet policy at applicable rates offered by the insurer.” SECTION 2. The General Assembly shall provide initial funding for the program in the amount of ninetyfive thousand dollars appropriated from the insurance premium taxes deposited in the general fund of the State pursuant to Section 38720. SECTION 3. This act takes effect upon approval by the Governor. The program takes effect no earlier than January 1, 2010, but not later than July 1, 2010. This program terminates five years from the date of its first date of operation unless extended by action of the General Assembly. XX