Proposed Action Regarding The Health Insurance Premium Payment Program (HIPP)


The South Carolina Department of Health and Human Services (SCDHHS) gives notice of the following proposed action regarding the Health Insurance Premium Payment program (HIPP) under the State Plan under Title XIX of the Social Security Act Medical Assistance Program (Medicaid).

Effective on or after September 1, 2015, SCDHHS proposes to amend the South Carolina Title XIX State Plan to include reimbursement for individual health insurance coverage when cost effective in regards to participation in the HIPP Program.

Currently, HIPP will reimburse for group health insurance coverage premiums only. Allowing reimbursement for both group and individual insurance plans will promote program growth that will help reduce SC Medicaid's overall cost.

Expanding participation in the HIPP program to include individual plans could result in an estimated 10% annual enrollment increase (based on today's private health market), yielding an estimated increase of $95,724 in premium payments. Based on the program cost effectiveness guidelines, the reduction in SC Medicaid's cost for HIPP participants will exceed the amount paid to maintain private health insurance. Medicaid savings are estimated to be $397,621, assuming enrollment in the HIPP program increases by 10%.

Copies of this notice are available at each County Department of Health and Human Services Office and at for public review. Additional information regarding this proposed action is available upon request at the address cited below.

Written comments may be sent to Third Party Liability - Health, SCDHHS, Post Office Box 8206, Columbia, South Carolina 29202-8206. Comments may also be submitted to Written and e-mailed comments must be received by close of business August 18, 2015.

Any written comments submitted may be reviewed by the public at the SCDHHS, Third Party Liability, Jefferson Square Building, 1801 Main Street, Columbia, South Carolina, Monday through Friday between the hours of 9:00 A.M. and 5:00 P.M.

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