S.D. Admin. R. 20:06:46:10

Current through Register Vol. 50, page 159, June 17, 2024

Section 20:06:46:10 - Employment based factors in determining two or more distinct groups of participants

Subject to § 20:06:46:12, § 20:06:46:03 does not prohibit a carrier subject to this chapter from treating participants as two or more distinct groups of similarly situated individuals if the distinction made between or among groups of participants is based on a bona fide employment-based classification that is consistent with the employer's usual business practice. Whether an employment-based classification is bona fide shall be determined based on all of the relevant facts and circumstances. Relevant facts and circumstances include whether the employer uses the classification for purposes independent of qualification for health coverages. Such classifications may include:

(1) Full-time versus part-time status;

(2) Membership in a collective bargaining unit;

(3) Date of hire;

(4) Length of service; and

(5) Current employee versus former employee status.

A classification based on a health factor may not be determined to be a bona fide employment-based classification for purposes of §§ 20:06:46:09 to 20:06:46:12, inclusive, unless the requirements of § 20:06:46:03 are satisfied.

S.D. Admin. R. 20:06:46:10

29 SDR 48, effective 10/10/2002.

General Authority: SDCL 58-18-79.

Law Implemented: SDCL 58-18-79.