November 7, 1977

Mr. Max A. Gors, Secretary 
Department of Commerce and Consumer Affairs 
State Capitol 
Pierre, South Dakota 57501

Official Opinion No. 77-94

Pertaining to insurance coverage of alcoholism treatment facilities approved by the State of South Dakota

Dear Mr. Gors:

You have requested an opinion from this office in regard to the following factual situation:

FACTS: 

SDCL 58-17-30.5 and SDCL 58-18-7.1 provide “[C]overage for the inpatient treatment of alcoholism in licensed hospitals and residential primary treatment facilities approved by the State of South Dakota which are carrying out an approved program pursuant to diagnosis and recommendation of a doctor of medicine.”

Based on the above facts, you ask the following question:

QUESTION: 

Do these statutes require that insurance companies only pay these policy benefits in hospitals licensed in the State of South Dakota and residential primary treatment facilities approved by the State of South Dakota?  In the alternative, could these statutes be interpreted to mean that this type of coverage should be provided in all licensed hospitals (regardless of whether or not they are in South Dakota) plus in these residential primary treatment facilities approved by the State of South Dakota?

SDCL 58-17-30.5 provides: 
    
Any insurer which delivers or issues for delivery in this state any insurance policy under this chapter which provides coverage on an expense incurred basis shall offer, in writing, to include in such policy or contract issued or renewed on or after July 1, 1977, coverage for the inpatient treatment of alcoholism in licensed hospitals and residential primary treatment facilities approved by the state of South Dakota which are carrying out an approved program pursuant to the diagnosis and recommendation of a doctor of medicine.

SDCL 58-18-7.1 provides: 
    
Any insurer which delivers or issues for delivery in this state group accident and sickness insurance policies which provide coverage on an expense incurred basis shall offer, in writing, to include in such group policies or contracts issued or renewed on or after July 1, 1977, coverage for the inpatient treatment of alcoholism in licensed hospitals and residential primary treatment facilities approved by the state of South Dakota which are carrying out an approved program pursuant to the diagnosis and recommendation of a doctor of medicine.

One of the well-recognized canons of statutory construction is the last antecedent rule which says basically that qualifying words or phrases are to be applied to the words or phrases immediately preceding the qualifying words or phrases, and do not extend beyond that unless the context and intent of the statute indicate to the contrary.  Wisconsin Power and Light Company v. Public Service Commission of Wisconsin, 24 Wis. 268, 272 N.W. 50, 52.  In applying the last antecedent rule to the above-cited statutes, it appears that the qualification “approved by the state of South Dakota” refers to residential primary treatment facilities and does not further extend to the term “licensed hospitals.”  This interpretation not only gives effect to this well-recognized rule of statutory construction, but also, in my opinion, leads to the most reasonable interpretation of these statutes.

Respectfully submitted,

William J. Janklow
Attorney General

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