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Archive for April, 2011

LEG REG REVIEW 2011, 14th Issue April 18, 2011

Apr 20

Posted by GPAHUAdmin in Legislative | No Comments

LEG REG REVIEW is a periodic newsletter produced by PHILLIPS ASSOCIATES, a professional lobbying and consultant firm located near the State Capitol.  It contains news on the legislative and regulatory scene in Pennsylvania that may be of interest to the Insurance and Business Communities.  It is a free member benefit for those who are members of the Pennsylvania Association of Health Underwriters (PAHU) or Manufacturers Association of South Central PA (MASCPA).  Subscription information may be obtained by contacting PHILLIPS ASSOCIATES at 717/728-1217 FAX 717/728-1164 or e-mail to xenobun@aol.com.  Please email jtrout2792@aol.com supplying both your name and e-mail address if you wish to be removed from this list.

HOUSE MOVES HOUSE BILL 1

On April 11, the PA House voted to pass the Fair Share Act (HB1 sponsored by Rep. Curt Schroder-R-Chester).  By a 112-88 vote, the measure moved to the Senate where it will face competition from competing versions.  First is the Fair Share Act advanced by Senator Jake Corman (R-Centre), Chair of the Senate Appropriations Committee. (SB 2)  Second is Senate Bill 500 (Greenleaf-R-Montgomery).  SB 2 is the same as HB 1 while SB 500 is a lessened version.  Stewart Greenleaf chairs the Senate Judiciary Committee where the bill was referred on April 13.  Governor Corbett applauded the House vote, saying that “Pennsylvania should no longer remain as one of the few states where the legal system can hold a person, company, or local government agency liable for 100% of the damages, despite having had only a minor role in any incident resulting in a lawsuit.”

This legislation is a repeat of legislation passed twice by the General Assembly in recent years. It was stymied by the courts the first time and by a veto by former Governor Rendell the second.  The intent is to change joint and several liability to comparative negligence where a person with small liability can end up paying the entire award.  Small businesses in particular have complained about being dragged into cases where they have little if anything to do with the occurrence prompting the lawsuit.  SB 2 and SB 500 were the subjects of an informational hearing conducted by the Senate Judiciary Committee on April 11.

SPRINKLER MANDATE REPEAL PASSES GENERAL ASSEMBLY

HB 377 (Everett-R-Lycoming), a bill to repeal a January 1 requirement that new houses have built-in sprinkler systems,  has passed the General Assembly and was sent to the Governor on April 13.  Despite a conclusive final vote by the House to concur with Senate amendments to HB 377, there was rancorous debate led by Democrats who attacked the Senate amendments as not being germane to the bill’s original purpose and for making it harder for Pennsylvania to promote green construction.  The amendments expanded the purview of the legislation to make changes in the Uniform Construction Code more difficult by requiring a 2/3 vote of the state’s Review and Advisory Council as well as requiring public hearings.

WORKERS’ COMP BILL PASSED BY SENATE

The Senate unanimously passed Senate Bill 654 (Argall-R-Schuylkill) to classify certain types of cancer as a covered disease under the state’s Workers’ Compensation law for both volunteer and professional firefighters.  Conditions include at least four year’s service as a firefighter and a link between duties as a firefighter showing direct exposure as well as a physical exam done prior to the claim which shows the individual to have been cancer free.  Cancers include those listed as Group 1 Cancers by the International Agency for Research on Cancer.

EXECUTIVE BRANCH ACTION

  • Senate Banking & Insurance Committee moved Governor Corbett’s nominee Glen Moyer to head up the Banking Department to the full Senate for confirmation.
  • Confirmed by the Senate were PA State Police Commissioner Frank Noonan, DGS Secretary Sheri Phillips, PennDOT Secretary Barry Schoch and C. Alan Walker as Secretary of the Department of Community and Economic Development.

HOUSE LABOR & INDUSTRY COMMITTEE MOVES TWO MUSTIO BILLS

The House Labor & Industry Committee moved two bills sponsored by Rep. Mark Mustio (R-Allegheny) with relevance to insurance.

  • House Bill 1055 recognizes and sets up a system to regulate PEOs or Professional Employer Organizations.  Traditionally, agent groups have been less than receptive to this approach because of possible Workers’ Compensation abuse and a reduction in customer service to a smaller business when a local insurance agent is replaced by insurance through the larger corporate entity, the PEO.  Some of these concerns in Workers’ Compensation were muted by amendments from the insurers and by the fact that Mustio is himself a licensed agent.  PAHU remains opposed to the bill.
  • House Bill 440 permits Workers’ Compensation insurers and the State Workers’ Insurance Fund (SWIF) to insure sole proprietors and partners.

INSURANCE COMMITTEE HELD MCARE HEARINGS

The House Insurance Committee held two educational meetings on the Medical Care Availability and Reduction of Error Fund (MCARE) last week.  The hearings included testimony from the Insurance Federation of PA representing insurers and the PA Insurance Department.  The second hearing featured presentations from medical groups including the Hospital and Health System of PA and the PA Medical Society.  The last hearing will include testimony from PA Association for Justice (trial lawyers) and will take place on April 27.

COMING UP

  • On April 20, the House Transportation Committee will hold a hearing on House Bill 896 (Ross-R-Chester) imposing an additional $50 fine for distracted driving which would include “use of any electronic, electrical, mechanical, personal grooming device, food, drink, book or printed material”.
  • On April 27 the House Professional Licensure Committee will look at changes to PA’s public adjuster law via HB 424 sponsored by Rep. Robert Godshall (R-Montgomery).  It makes a violation of the law a felony of the third degree with increased penalties governed by the Unfair Trade Practices and Consumer Protection Law.
  • The Patient Safety Authority will meet April 26 in Harrisburg. Details: 717/346-0469

LABOR DEPARTMENT ISSUES VIEWS ON ESSENTIAL MEDICAL BENEFITS

The U.S. Department of Labor issued a report on the essential medical benefits mandated by the Patient Protection Affordable Care Act (PPACA) which governs plans offered in the new Health Insurance Exchanges and in the individual and small group markets. While HHS is the lead agency, it sought Labor’s views as well as findings of HHS’ own Institute of Medicine.  HHS announced April 15 that it will seek public comments this fall.  Read the report: http://www.bls.gov/ncs/ebs/smb_health.htm

REGULATORY NOTES

  • The Department of Public Welfare has issued a notice specifying the income levels for the Federal Poverty Income Guidelines as it relates to eligibility to PA programs (based on HHS 1/20/11).  A family of four at 100% makes $22,350; at 133% (the amount specified in PPACA for expansion of Medicaid eligibility in 2014), a family of has $29,726 in annual income.
  • Shared Services Insurance Group, a domestic stock casualty company, is seeking to surrender its Certificate of Authority to do business in the Commonwealth.
  • April is Financial Education Month per a proclamation issued by Governor Tom Corbett on April 14.  His proclamation notes that PA’s Office of Financial Education had received numerous awards for its work in promoting financial literacy and that the Office’s work is especially important today with the economy and with the need for consumers to better understand the new credit rules that have come from Washington. Details: www.moneysbestfriend.com

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LEG REG REVIEW 2011, 13th Issue April 11, 2011

Apr 13

Posted by GPAHUAdmin in Legislative | No Comments

LEG REG REVIEW is a periodic newsletter produced by PHILLIPS ASSOCIATES, a professional lobbying and consultant firm located near the State Capitol.  It contains news on the legislative and regulatory scene in Pennsylvania that may be of interest to the Insurance and Business Communities.  It is a free member benefit for those who are members of the Pennsylvania Association of Health Underwriters (PAHU) or Manufacturers Association of South Central PA (MASCPA).  Subscription information may be obtained by contacting PHILLIPS ASSOCIATES at 717/728-1217 FAX 717/728-1164 or e-mail to xenobun@aol.com.  Please email jtrout2792@aol.com supplying both your name and e-mail address if you wish to be removed from this list.

FAIR SHARE ACT CONTINUES DRIVE

The stage is set for a vote on House Bill 1 (Schroder-R-Chester) this week in the House after an April 4 Judiciary Committee vote.  This legislation is a copy of legislation passed twice by the General Assembly in recent years which was stymied by the courts the first time and by a veto by former Governor Rendell the second go-round.  The bill’s intent is to change joint and several liability to comparative negligence where a person with small liability can end up paying the entire award.  Small businesses in particular have complained about being dragged into cases where they have little if anything to do with the occurrence prompting the lawsuit.  Proponents are trying to keep the bill clean (no amendments) for the vote.

SPRINKLER BAN REPEAL PROGRESSES

The Senate Labor & Industry Committee approved House Bill 377 (Everett-R-Lycoming) which reverses the 1/1/2011 requirement that new construction of residential homes include sprinkler systems.  As amended, it addresses the very practice that instituted the sprinkler requirement, automatic embrace of a construction code versus spelling out its components before being voted on by the General Assembly.  HB 377 would also require hearings on any Uniform Construction Code change and require that it go through a regulatory review process to make sure that it is thoroughly vetted before going into effect.  It goes to the Senate for a full floor vote.

LONG-TIME DEPARTMENT OFFICIAL NAMED TO PROMINENT POST

Randy Rohrbaugh, a 16-year Insurance Department veteran, has been named to the post of Executive Deputy Insurance Commissioner.  Rohrbaugh, with wide regulatory experience, will in effect be the operations manager for the Department’s many activities including both programmatic and administrative.  He will serve as the number two official after Acting Commissioner Michael Consedine.

THREE PA CONGRESSMEN SIGN ON TO MLR BILL

Three Pennsylvania congressmen have signed on to legislation sponsored by Rep. Mike Rodgers (R-MI) to remove agent compensation from the calculation of the Medical Loss Ratio (MLR).  HR 1206 was introduced in response to concerns raised by NAHU and other agent organizations that insurers were reducing compensation in order to meet the MLR requirement imposed by PPACA that either 80 or 85% (depending on group size) of premiums go towards claims. The sponsors are Democratic Rep. Tim Holden and Republicans Mike Fitzpatrick and Todd Platts.

SENATE REPEALS PPACA 1099

The United States Senate agreed with the U.S. House to repeal Section 9006 of the Patient Protection & Affordable Care Act (PPACA) requiring businesses to file a 1099 form with the IRS for any other vendor or business with which they did $600 worth of business.  That was seen as creating a huge administration burden on businesses and it was a top priority of business groups such as the Chamber and NFIB.  Even President Obama noted the issue in his State of the Union address as something that needed to be dealt with.  Both Pennsylvania Senators Casey and Toomey voted for repeal.

INSURANCE COMMITTEE PLANS MCARE HEARINGS

The House Insurance Committee plans three weekly educational meetings on the Medical Care Availability and Reduction of Error Fund (MCARE) starting April 12.  The first hearing will include testimony from the Insurance Federation of PA representing insurers and the PA Insurance Department.  The second hearing will include presentations from medical groups including the Hospital and Health System of PA, the PA Medical Society and the PA Orthopedic Society.  The last hearing will include testimony from PA Association for Justice (trial lawyers).  Although MCARE has been discussed many times at numerous hearings, this is the first one which is not expected to focus on the provider retention account which no longer exists.  That was a program that assisted doctors with an MCARE assessment in trade for them staying in Pennsylvania.  Additionally, the Department under Governor Corbett has testified that it does not want to be in the medical professional liability insurance business and that it would like the state to bow out of the picture.

FEDERAL BUDGET UPDATE

Unless you chose a weekend news blackout, you already know that the impasse between House Republicans, Senate Democrats and President Obama came to an end at the 11th hour, averting a federal shutdown Friday night.  Following is the joint statement from Speaker Boehner and Senate Majority Leader Reid:

“We have agreed to an historic amount of cuts for the remainder of this fiscal year, as well as a short-term bridge that will give us time to avoid a shutdown while we get that agreement through both houses and to the President.  We will cut $78.5 billion below the President’s 2011 budget proposal, and we have reached an agreement on the policy riders.  In the meantime, we will pass a short-term resolution to keep the government running through Thursday.  That short-term bridge will cut the first $2 billion of the total savings.”

Although full details have not been published via www.thomas.gov, the bottom line is that another Continuing Resolution keeps the government functioning until Thursday so that final votes on the new Agreement can be taken by both House and Senate.  According to Speaker Boehner, there were a number of items affecting the Patient Protection Affordable Care Act (PPACA). These did not include de-funding of some of the major components such as the Office of Exchanges which is headed by former PA Commissioner Joel Ario.  Rather, (per Speaker Boehner) the list includes

-          A promise by Senate Democrats that a Senate vote would take place on total repeal of PPACA including parts already in place

-          A study of the numerous mandates in PPACA including impact of premiums from expanded benefits, an audit of who received the Mini-Med waivers (so-called McDonalds Waiver), audit of comparative effectiveness research funding and a list of all contractors chosen by the Administration to implement the law and their cost

-          Deletion of additional IRS funding for new IRS agents to enforce unspecified PPACA rules

COMMITTEE ACTION

  • Senate Banking & Insurance Committee meets Tuesday to consider Governor Corbett’s nominee Glen Moyer to head up the Banking Department and SB 118 (White-R-Indiana) re risk based capital
  • The Senate Public Health & Welfare Committee approved Senate Bill 5 (Erickson-R-Delaware) which establishes the Community Based Health Program within the Health Department.  This unit would assist community health clinics to provide direct care to the needy.

REGULATORY NOTES

  • PA Health Cost Care Containment Council (PHC4) Audit Committee has scheduled a teleconference meeting April 14. The public may monitor it from PHC4’s office in Harrisburg. Details: Renee Greenawalt 717/232-6787
  • Mid-Continent Insurance Company (stock property) is seeking to redomesticate from Pennsylvania to Michigan.

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LEG REG REVIEW 2011, 12th Issue April 4, 2011

Apr 5

Posted by GPAHUAdmin in Legislative | No Comments

LEG REG REVIEW is a periodic newsletter produced by PHILLIPS ASSOCIATES, a professional lobbying and consultant firm located near the State Capitol.  It contains news on the legislative and regulatory scene in Pennsylvania that may be of interest to the Insurance and Business Communities.  It is a free member benefit for those who are members of the Pennsylvania Association of Health Underwriters (PAHU) or Manufacturers Association of South Central PA (MASCPA).  Subscription information may be obtained by contacting PHILLIPS ASSOCIATES at 717/728-1217 FAX 717/728-1164 or e-mail to xenobun@aol.com.  Please email jtrout2792@aol.com supplying both your name and e-mail address if you wish to be removed from this list.

THE GENERAL ASSEMBLY IS BACK IN TOWN

After a recess for the Budget hearings, the full General Assembly is back in town.  In addition to the legislative and committee activity is the swearing in of new Senator Judy Schwank (D-Berks).  A former Dean of Delaware Valley College, she replaces the late Senator Michael O’Pake who died last fall.  She is slated to assume the position of Minority Chair of the Senate Agriculture & Rural Affairs Committee, replacing Lisa Boscola (D-Northampton).

JOINT & SEVERAL REPEAL SET TO MOVE

After a March 31 House Judiciary Committee hearing on House Bill 1, called the Fair Share Act, (Schroder-R-Chester) the committee is slated to take action to replace the state’s joint and several liability legal standard with one of comparative negligence.  This means that a party with less than 60 percent liability would not be dragged into a lawsuit.  The legislation does make exceptions for liquor liability and certain environmental toxic liability issues.  Once the Judiciary Committee acts upon HB 1, the full House will take it up since this is a top priority of the Republican majority.  The Fair Share Act had been passed by the General Assembly twice before but was blocked by a court ruling and by a veto from former Governor Ed Rendell.

COMMITTEE SCHEDULE

  • On April 5 the House Labor & Industry Committee meets to discuss the solvency of the Unemployment Compensation Trust Fund.
  • On the same day, the House Health Committee has a packed agenda including action on four bills designed to tighten public assistance rules.  They are: HB 960 on DPW fraud detection; HB 1251 regarding false statements and fraud reporting; HB 1254 prohibiting use of welfare monies for tobacco products; and HB 1261 re eligibility for public assistance
  • April 6 the House Aging & Older Adult Committee holds a hearing to discuss hospice and homecare.
  • Also on April 6, the Senate Labor & Industry Committee meets to consider SB 552 (Brubaker-R-Lancaster), an industry partnership bill supported by manufacturers and other business groups.

COMMITTEE TO CONSIDER SPRINKLER REPEAL

As further evidence of the fast track nature of the issue of sprinkler repeal is consideration this week by the Senate Labor & Industry Committee of House Bill 337 (Everett-R-Lycoming).  This legislation repeals changes in the Uniform Construction Code mandating that sprinkler systems be installed in new home construction. Proponents of the law regard it as an essential component of fire safety.  Opponents point to the added cost of new home construction as a negative, particularly in today’s dismal new housing market.  Repeal almost occurred at the end of last year’s legislative session but lawmakers simply ran out of time.

REVENUE NEWS GIVES MIXED RESULT for MARCH

According to the Revenue Department, overall tax revenues coming in to the state were $10.5 million less than expected. This was attributed to a drop in corporate tax revenue of $2.2 billion, $112.3 million below forecast. However, Personal Income Taxes were up by $57.9 more than anticipated and sales taxes also were up by $26.5 million over estimates. Net revenue this fiscal year is 1.2 percent over projections.

ADMINISTRATION UPDATES

  • Governor Corbett has nominated Julie Hearthway to fill the only vacant spot left in his Cabinet, the position of Secretary of the Department of Labor & Industry (L&I).  Hearthway headed the Automobile Theft Prevention Authority and worked for the Office of Attorney General. L&I govern Workers’ Compensation and Unemployment Compensation. She was also a Montgomery County Assistant DA.
  • A nomination hearing will take place this week for David Meuser, Governor Corbett’s nominee for Secretary of Revenue (Senate Finance Committee).  On April 12, Secretary of Banking nominee Glen Moyer will face the Senate Banking & Insurance Committee.
  • Correction: Last week’s Leg Reg Review incorrectly identified the Acting Secretary of the Department of Public Welfare in an article on Rep. Pitts’ hearing in Harrisburg on the Patient Protection & Affordable Care Act.  He of course is Gary Alexander.

US LABOR DEPARTMENT HEARING DISCUSSES INVESTMENT FEE ADVICE

On March 28, the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) announced that they have posted online the transcript from the public hearing on defining when a person is deemed a “fiduciary” by reason of giving investment advice for a fee under the Employee Retirement Income Security Act. The transcript is posted on EBSA’s webpage at http://www.dol.gov/ebsa and has been placed in EBSA’s Public Disclosure Room.  Additional comments will be accepted from the public until April 12 by contacting EBSA via  e-ORI@dol.gov with subject line: Public Hearing on Definition of Fiduciary, or, on paper to EBSA’s Office of Regulations and Interpretations, Attn: Public Hearing on Definition of Fiduciary, Room N-5655, U.S. Department of Labor, 200 Constitution Ave. NW, Washington, DC, 20210. Warning: Do not include any personally identifiable information (such as name, address, or other contact information) or confidential business information that you do not want publicly disclosed. All comments may be posted on the Internet and can be retrieved by most Internet search engines. Comments may be submitted anonymously.

REGULATORY UPDATE

  • Pennsylvania Health Care Cost Containment Council (PHC4) issued a request for proposal for attorney services on a retainer basis.  Proposals are due to PHC4 by April 20.  Details: Renee Greenawalt 717/232-6787
  • No assessments will be needed for the funding of the Workers’ Compensation Security Fund per Insurance Department Notice 2011-02.
  • Capitol Guaranty Holding Company is seeking Department permission to acquire Capitol Insurance Company, a domestic property insurance company.
  • Two changes to the Export List were announced by the Insurance Department on April 2 effective April 16.  They are Pest Control (Exterminators) Liability and Tattoo Parlors Liability.  This means that insurance producers wishing to write those two coverages no longer need to obtain declinations from the admitted market before seeking placement in the Excess & Surplus Lines market.

KAISER RELEASES HEALTH SURVEY FINDINGS

The Kaiser Family Foundation released findings from its Health Tracking Poll for March 2011 showing that the public remains as divided as ever in its views of the Patient Protection & Affordable Care Act (PPACA) with 42% liking it and 46% not.  53% state that they are confused about what’s in the law and 52% say that they do not know enough to know how it will impact them personally.  Seniors however remain strongly distrustful of PPACA with 52 percent skeptical.  The numbers of favorable seniors did increase seven percent from February to March but that was before US House committee hearings accusing AARP of supporting passage of PPACA for its own profit motives. Still, by a two-to-one margin, seniors believe Medicare will be worse off under PPACA.

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LEG REG REVIEW 2011, 11th Issue March 28, 2011

Apr 5

Posted by GPAHUAdmin in Legislative | No Comments

LEG REG REVIEW is a periodic newsletter produced by PHILLIPS ASSOCIATES, a professional lobbying and consultant firm located near the State Capitol.  It contains news on the legislative and regulatory scene in Pennsylvania that may be of interest to the Insurance and Business Communities.  It is a free member benefit for those who are members of the Pennsylvania Association of Health Underwriters (PAHU) or Manufacturers Association of South Central PA (MASCPA).  Subscription information may be obtained by contacting PHILLIPS ASSOCIATES at 717/728-1217 FAX 717/728-1164 or e-mail to xenobun@aol.com.  Please email jtrout2792@aol.com supplying both your name and e-mail address if you wish to be removed from this list.

PPACA HEARING HELD ON PPACA’S ANNIVERSARY

March 23, 2011 was the one-year anniversary of the Patient Protection Affordable Care Act (PPACA) and a congressional hearing in Harrisburg was held to mark the occasion.  This was convened by the U.S. House Energy & Commerce Committee to showcase some of the fault lines in the law and to look specifically at PPACA’s implications to job creation or jobs-inhibition.

Witnesses included Governor Tom Corbett who, as Attorney General, was one of those who filed a lawsuit against PPACA’s individual mandate in the Federal courts. He was followed by Secretary-designates for the Departments of Insurance and Public Welfare, Michael Consedine and Gary Alexander respectively.  Another panel included Rep. Matt Baker (R-Tioga), Chair of the House Health Committee and Senator Pat Vance (R-Cumberland), Chair of the Senate Public Health & Welfare Committee.  The last panel included the PA Chamber of Business & Industry, the NFIB Pennsylvania State Director and an employer from Rep. Joe Pitt’s district.  Rep. Pitts chairs the Energy & Commerce Committee’s health subcommittee. Details: Heidi Stirrup Heidi.Stirrup@mail.house.gov Rep. Glen Thompson (R-5th) also participated.

Some of the more telling commentaries were statements by Alexander that the expansion of Medicaid eligibility to 133% of the Federal Poverty Level means an additional $2 billion cost to PA taxpayers for the state’s required match and Consedine that “the road to health reform is a Toll Road” Medicaid now demands 30% of the  State Budget now. The NFIB noted that while small businesses may take advantage of the PPACA tax credit, any benefit is swallowed by increases in premiums resulting from the Federal law.  Several speakers commented on the uncertainty as to how states should proceed in implementation given the size and complexity of the law and stressed the need for more state flexibility rather than a top-down one size fits all approach.

CONFIRMATION HEARINGS

  • Barry Schoch received a favorable nod from the Senate Transportation Committee in his quest to be confirmed as Secretary of the PA Dept. of Transportation.
  • A similar outcome came from the Senate Education Committee as it moved the nominee for Education Department Secretary Ronald Tomalis to the full Senate for a vote.
  • Going for three, the Corbett nomination for Department of Health Dr. Eli Avila also passed Senate Public Health & Welfare Committee review.
  • Nominated to serves as Secretary of the Department of Conservation & Natural Resources is Richard Allen, Executive Director of PA, MD and DE Scrap Recycling Industries.

LABOR INDUSTRY COMMITTEE HEARS WC TESTIMONY

The House Labor & Industry Committee heard testimony March 23 on extending Workers’ Compensation coverage to partnerships, LLCs and sole proprietors via House Bill 440 (Mustio-R-Allegheny).  It authorizes insurers and the State Workers’ Insurance Fund (SWIF) to provide Workers’ Compensation coverage.  The new language repeals existing language in statute which permits SWIF to provide coverage to sole proprietors or partners engaged in logging or logging-related businesses and replaces it with the more expansion language mentioned above.  Passage of HB 440 is a major IA&B priority and is supported by the insurance companies.

FLOOD INSURANCE GETTING SOME U.S. ACTION

The National Flood Insurance Program (NFIP) is attracting interest after a series of embarrassing episodes where the U.S. Congress let the program’s authority lapse several times.  NFIP was the subject of a congressional hearing convened by the House Financial Services Committee subcommittee on Insurance, Housing & Community Opportunity March 11 entitled ‘Legislative Proposals to Reform the NFIP’.

EXCHANGE UPDATES

Implementation of the Insurance Exchanges and the role of the insurance producer is the focus of the of the Pennsylvania Association of Health Underwriters (PAHU) Day on the Hill.  Being held April 12, the event will draw approximately 100 brokers to remind legislators and staff of the primacy of Act 147 when considering Exchange legislation.  Act 147 says that only licensed producers can sell, solicit or negotiate contracts of insurance but state lawmakers have discretion to make agents a marginal part of the equation if they so choose.  Details: 717/232-0022 or xenobun@aol.com. So far, only a few pieces of legislation have been introduced re Exchanges. First is HB 42 which says that PA is not going to comply with PPACA’s individual mandate, SB 3 governing prohibition on Exchanges being used to fund abortions and HB 627 sponsored by House Insurance Committee Minority Chair Tony DeLuca (D-Allegheny).  This bill is the NAIC Model language and is meant to be a starting point.  HB 627 text is available from www.legis.state.pa.us.

At the national level, the National Association of Insurance Commissioners (NAIC) Subcommittee on exchanges met on March 25 to look at Exchanges. The agenda included comparison of existing Exchange prototypes (MA, UT) and on states that have received HHS money recognizing them for being far along in their exchange implementation. (KS, WI).  Former Insurance Commissioner Joel Ario provided an update as to the HHS Office of Insurance Exchanges.  PA Acting Insurance Commissioner Michael Consedine is not a member of this NAIC subcommittee. A link to the NAIC page follows. It also provides links to the NAIC White Paper establishing the limits from NAIC’s point of view on what Navigators can and can not do.

http://www.naic.org/committees_b_exchanges.htm

REGULATORY UPDATE

  • The PA Health Care Cost Containment Council (PHC4) published a list of the more than 80 requests it received for health data in 2010. These ranged from the Governor’s Office to other Pennsylvania Cabinet offices to numerous educational institutions such as Duke University, Northwestern University Law School and the University of Pittsburgh.  There was also a sprinkling of special interest groups seeking data.  Details: JoAnne Z. Nelson 717/232-6787, jnelson@phc4.org
  • MCARE’s Patient Safety Authority Trust Fund assessments were announced in the March 5 PA Bulletin.  The Notice sets the Trust Fund total at $5 million (same as last year) and describes procedures the Health Department used in establishing the surcharge paid for by hospitals and other medical facilities.  Another Notice set the amount that nursing homes pay into the Trust Fund at $9.15 per bed. Details: Joanne Salsgiver 717/783-8980

POLITICAL UPDATE: Democrat Judy Schwank defeated Republican Larry Medaglia in the Berks County special election that was held to replace the late Michael O’Pake (D-Berks).  Her win does not change the political ratio where Republicans control the Senate since O’Pake was also a Democrat.  She will likely be the new Minority Chair of the Senate Agriculture & Rural Affairs Committee.

UPCOMING

  • Senate Public Health & Welfare Committee is slated to consider SB 5 (Erickson-R-Chester) on April 6. The bill is designed to provide state support for community-based health care clinics and divert patient care needs that would otherwise go to the ER. PAHU supports the bill.
  • Appropriations Committee hearings are wrapping up this coming week with selected hearings listed:

March 28 L&I (Senate); March 29: Education; DCED (Senate); March 30: L&I (House); D

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