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Archive for January, 2012

LEG REG REVIEW 2012, 5th Issue January 30

Jan 31

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.

POLITICS AND REAPPORTIONMENT

The 2012 election season is or will soon be in disarray for state legislative candidates thanks to a PA Supreme Court January 25 ruling that invalidated Reapportionment Commission-drawn boundary lines for House and Senate districts.  It is uncertain as to what district lines will be used this election cycle since nominating petitions are already circulating based on the NEW district lines.  New congressional district lines are unaffected by the ruling.  In addition, special elections for unexpired terms for open House seats are at risk since constitutionally they would have had to have been in the new district boundaries, not the old.  Side note: in one of those districts former Rep. Chelsea Wagner (D-Allegheny) decided to resign her post in the General Assembly after all despite early indications to the contrary because the new district would have been a Lehigh Valley vote, not a Pittsburgh vote where her district had been before reapportionment.

Other state political news:

-          House Majority Leader Mike Turzai (R-Allegheny) will not run for Congress.  In that district, there is a hot contest between two Democratic incumbents, Mark Critz and Jason Altmire.

-          Senator John Pippy (R-Allegheny) has decided not to stand for re-election.

HEARING UPDATES

  • The House Insurance Committee hearing on SB 338 (Vance-R-Cumberland) that was originally scheduled for January 26 was cancelled and is rescheduled for February 9.
  • February 16 remains the date for a House Insurance Committee hearing on HB 717 (Matzie-D-Allegheny) that would establish a Consumer Advocate for Health Insurance based in the Department of Community & Economic Development.

NAHU CAPITOL CONFERENCE REPORT

The National Association of Health Underwriters (NAHU)’s annual Washington, DC Capitol Conference ended with major developments on insurance agents’ quest to have agent compensation removed from calculations of the Patient Protection Affordable Care Act (PPACA) Medical Loss Ratio (MLR).  First, congressional visits landed 11 more sponsors to HR 1206 as of 1/27/12 including two more from Pennsylvania, Republicans Glenn Thompson and Patrick Meehan.  This brings the PA sponsorship up to 12, a majority of the 19-person House delegation.  HR 1206 has 160 House sponsors.  Another development is the promise to introduce a similar bill in the Senate by Democratic Senator Mary Landrieu (LA).

HHS Director of the Center for Consumer Information and Insurance Oversight Steve Larsen stated that HHS would not consider exempting agent compensation from MLR.

Another presenter of note was Speaker of the House John Boehner (R-OH).  Coming the morning after the President’s State of the Union speech, Boehner said that President Obama had changed into the “Great Divider” which as a campaign theme does not help the country.  He also pointed to Senate inaction as an obstacle to constructive legislation since the House had passed 30 economic development bills, only three of which had been taken up by the Democratic-controlled U.S. Senate.

HOUSE COMMITTEE MOVES RBC BILL

On January 24, the House Insurance Committee moved House Bill 2134 (Micozzie-R-Delaware) to strengthen the Insurance Department’s tools in analyzing insurance company solvency.  It  provides a “trend test” to better gauge insurer solvency in the life and health market.  This legislation gives the Insurance Department an additional monitoring tool and helps the state maintain its NAIC accreditation as being equipped to evaluate company solvency.

REGULATORY UPDATE

  • On January 28, the PA Bulletin published a list of eligible Surplus Lines Insurers.  This replaces in its entirety the list published on January 4, 2011.  Details: www.pabulletn.com
  • Philadelphia-United Fire Insurance Company, a domestic stock property insurance company, has submitted an application for approval to surrender its Insurance Department Certificate of Authority.
  • Per PA Compensation Rating Bureau Circular 1594 issued January 10, the U.S Department of Labor wants to transit away from hard copy submissions of form LS 570 from insurers reporting coverage under the Longshoreman and Harbor Workers Compensation Act.  This is not finalized.  Details: www.pcrb.com

INSURANCE DEPARTMENT TO HOLD BRIEFINGS ON EXCHANGE IN PA

Next week the PA Insurance Department is holding briefings on the Corbett Administration’s approach to establishing Health Insurance Exchanges in Pennsylvania.  Briefings will be held separately for legislative staffs and stakeholder groups such as PAHU and the PA Chamber.  Expected in the presentations will be an overview and background as well as discussing enabling legislation that might be proposed by the Administration.  This announcement comes on the heels of the Insurance Department’s seeking of $33 million implementation money from HHS, a move that evoked some controversy from conservatives who regarded it as a de facto endorsement of the Patient Protection Affordable Care Act (PPACA).  The counter to this was the argument that PA has until 1/1/13 to pass Exchange legislation or HHS will impose its version on the Commonwealth.

2011 ENFORCEMENT ACTIONS LISTED

On January 25, the PA Insurance Department reported that in 2011, it closed 334 enforcement actions and market conduct exams, issued 141 orders and adjudications, collected $900,000-plus in fines and recovered more than $3.2 million in restitution for consumers.  Some specific outcomes:

-          37 individual producer licenses were revoked or surrendered

-          57 licensees were placed on probation

-          16 waivers were granted from section 1033 of the Federal Violent Crimes Act which prohibits anyone with a criminal past from working in the insurance industry

Examples of what caused the department to take action were using unapproved insurance contracts, misappropriating insurance premium dollars, forging or altering signatures on applications, failing to disclose prior felony and misdemeanor convictions, selling unlicensed health plans, and lying on license applications or renewal forms.  Details: www.insurance.pa.gov .

ITEMS TO WATCH IN HARRISBURG…On January 20, Rep. Marguerite Quinn (R-Bucks) introduced House Bill 2135 which would permit electronics vendors to have a limited lines license to sell, solicit or negotiate coverage for portable electronic devices.  It follows House Bill 20 sponsored by Rep. Katherine Watson (R-Bucks) which would allow staff at self service storage units to sell, solicit and negotiate property policies for the storage unit contents.  Both representatives are members of the House insurance Committee.

SPARKS NOTE: The SPARKS Club is holding two seminars on disaster March 27 in Monroeville and March 28 in Grantville.  The class is pending Insurance Department approval for six credits and will focus on disaster strategies undertaken by agencies and their clients.  It will also examine endorsement language issues (E&O?) for earthquake, storms, flood, hail, etc.  Details: www.sparksclub.com

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LEG REG REVIEW 2012, 4th Issue January 23

Jan 23

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 CLEARS NURSING HOME TORT REFORM BILL

A bill sponsored by Rep. Glenn Grell (R-Cumberland) which limits punitive damage awards in civil liability cases against nursing care facilities passed the PA House January 18 by a 103-89 vote.  House Bill 1907 limits such awards to 200 percent of the compensatory award and now goes to the Senate for consideration.  An exception to this legal limitation would be in cases where there was clear intentional misconduct.

 

INSURANCE COMMITTEE HOLDS DENTIST INSURANCE HEARING

On January 26, the House Insurance Committee will hold a hearing on Senate Bill 338 (Vance-R-Cumberland) to mandate that dentists purchase medical malpractice liability insurance as doctors and hospitals do now.  The PA Dental Association supports the legislation.

 

SOLVENCY BILL ON HOUSE INSURANCE AGENDA

A voting meeting of the House Insurance Committee January 25 will consider House Bill 2134 (Micozzie-R-Delaware) to provide a “trend test” to better gauge insurer solvency in the life and health market.  This legislation gives the Insurance Department an additional monitoring tool and helps the state maintain its NAIC accreditation as being equipped to evaluate company solvency.

 

POLITICS

  • U.S. Representative and former PA House member Todd Platts (R-19) is not running again, citing a promise to abide by term limits.  Already announcing is PA House Member Scott Perry (R-York).  According to media reports, Senator Mike Waugh (R-York) is also regarded as a possible candidate.  The person who opposed Platts in the last congressional primary, Mike Smeltzer, head of the Manufacturers Association of South Central PA, has not given an indication as to his 2012 plans.
  • Rep. Chesea Wagner (D-Allegheny) apparently decided to resign after all.  Earlier, she had reportedly wanted to keep her legislative seat in Harrisburg and her new Allegheny County post after it became clear that the special election to replace her would take place in the Lehigh Valley and not in Pittsburgh.

 

CLASS REPEAL MOVES FORWARD

An attempt to repeal PPACA’s Community Living Assistance Services and Supports Act (CLASS) moved a step closer with this last week’s 23-13 vote by the US House Ways and Means Committee for HR 1173.   CLASS was PPACA’s employer-based long-term care program which ran into actuarial trouble when it became apparent that CLASS could not sustain itself because of adverse selection.  Earlier, the Obama administration backed off from implementation but the legal authority still exists.  Joining the majority to repeal was Ways & Means Committee member Rep. Jim Gerlach from southeast PA.  In addition, five PA congressmen are sponsoring the bill. They are Reps. Mike Kelly, Tim Murphy, Glenn Thompson, Tom Marino and Bill Shuster.

 

OBIT NOTE FOR JACK LOSH…Reported in the January 22 Patriot-News is the passing of pre-licensing instructor icon Jack Losh.  For decades, he was a fixture in the training conducted by the former Independent Agents of PA.  The Big I thought so much of him that they named their educational award after him.  We’ll miss you Jack.

 

MEDICAL RECORDS FEE SCHEDULE ANNOUNCED

On January 21 the PA Bulletin re-published the PA Department of Health’s list of what fees might be charged by health care providers to those seeking copies of medical records.  Exempted from this fee schedule are insurers who are trying to validate charges in settlement of an insurance claim (except for Workers’ Compensation).  A request from a Social Security or any Federal or state financial needs based program or for a district attorney have a flat fee.  X-ray film is not covered by this Notice since it “is not susceptible to photostatic reproduction.” The DOH originally published this schedule December 3, 2011 but it turns out there was a typographical error and so the list was re-released.

 

Schedule of charges is as follows:

- Pages 1-20                                        not to exceed $1.39 per page

- Pages 21-60                                      not to exceed $1.03 per page

- Pages 61 and above                          not to exceed 34 cents per page

- Microfilm per page charge               $2.04

- Flat fee re Social security claim        $26.12

- Flat fee for records sought by DA     $20.62

 

In addition to these fees, charges for postage, shipping and delivery may be imposed.

 

DEPARTMENT ISSUES EXCHANGE RATIONALE

On January 19, the PA Insurance Department issued a statement from Commissioner Consedine that spells out the rationale for the Corbett Administration’s seeking of a $33 million grant from the US Department of Health & Human Services when PA is seeking an unconstitutional ruling from the US Supreme Court against the Patient Protection Affordable Care Act (PPACA).  The document restates the Corbett view that the Federal law is unconstitutional but unless repealed or knocked down by the Supreme Court, it is still the law of the land and Pennsylvania must still have legislation in place January 1, 2013 establishing a state Health Insurance Exchange or HHS will impose its own Exchange on the Commonwealth.

 

NFIP OFFERS WEBINARS

Three Webinars will be offered this coming week by the National Flood Insurance Program (NFIP).  Topic for January 24 is FEMA Mapping Changes.  Advanced Flood Training is offered January 26 as is Elevation Rating. Details:  http://www.fema.gov/business/nfip/a_wshop.shtm  NOTE: In-agency Flood Insurance CE is offered by PHILLIPS ASSOCIATES.

 

CROP INSURANCE LOSSES LISTED BY COUNTY

On January 17 USDA Risk Management Agency (RMA) issued a county by county loss statement for Crop Insurance payouts for 2011.  Eight PA counties had RMA crop indemnities exceeding one million dollars (figures slightly rounded): Franklin $7 million; Berks $2.7 million; Blair $1.9 million; Huntingdon $1.5 million; Adams $1.3 million; Lancaster and Lebanon $1.2 million each; and Schuylkill with $1.1 million.  Posting close to the $1 million mark was Bedford County at $900,000.  Most counties sustained claims ranging from $100,000 to $600,000.  Three counties had no indemnities for Crop Insurance (Forest, Pike, and Cameron).  Details:  http://www.rma.usda.gov/data/indemnity/2011/11712table.pdf . These numbers may become important after Governor Corbett releases his Budget proposal for FY 2012-13 which would likely NOT resurrect the PA Crop Insurance Premium Subsidy Program

 

MARYLAND EXCHANGE NOTE

According to Insurance & Financial Advisor of January 6, 2012, , Executive Director of Maryland Health Benefit Exchange Rebecca Pierce told lawmakers that agents and brokers should sell the exchange products and serve as Navigators since duplicating services with unlicensed navigators would be expensive and inefficient.

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LEG REG REVIEW 2012, 3d Issue January 16

Jan 19

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.

 

TORT BILL ON HOUSE CALENDAR

A bill addressing tort reform issues is on the House calendar when the General assembly reconvenes this week.  House Bill 1976 (Cutler-R-Lancaster) would require that trials involving damages take place in the counties where the event allegedly occurred.  This is designed to reduce the practice of trial attorneys seeking to move the trial to jurisdictions known for high jury awards. A similar approach was taken with medical malpractice lawsuits and the result was a 50% drop in new medical malpractices cases going to Philadelphia courts.  Allegheny County saw a one-third drop.

 

BUDGET HEARING SCHEDULE SET

Budget hearings by the House and Senate Appropriations Committees start in February after Governor Corbett’s February 7 address to the General Assembly… (www.legis.state.pa.us for a full schedule)

 

Agency                                               Date/Time/House/Senate

Aging                                                   2/29 3:00 House; 2/21 3:00

Agriculture                                           2/28 9:30 House; 2/28 1:00 Senate

Attorney General                                 2/22 9:00 House; 2/15 1:00

Auditor General                                   2/22 11:00; 2/15 9:30

Community Economic Dev.                3/1 1:00 House; 2/27 3:00 Senate

Conservation & Nat. Resources           2/28 10:30 House; 2/16 3:00 Senate

Environmental Protection                    2/28 1:00 House; 2/22 9:30 Senate

Health                                                  2/29 1:30; 2/21 1:00

Insurance                                             2/27 3:00; 2/14 3:00

Labor & Industry                                 3/1 10:00 House; 2/23 3:00 Senate

Transportation                                     2/29 9:30 House; 2/22 1:00 Senate

 

COMMITTEE WORK

  • On January 26, the House Insurance Committee holds a hearing on Senate Bill 388 (Vance-R-Cumberland) on dental liability insurance.
  • It is confirmed that the House Insurance Committee will have a hearing Feb. 16 on House Bill 717 (Matzie-D-Allegheny) which would establish an Office of Consumer Advocate for Health Insurance to be housed in the Department of Community & Economic Development. (DCED)

 

NAIC CLOSES LIFE COMMENTS BY JANUARY 30

The National Association of Insurance Commissioners announced January 13 that the cut-off date for public comment on the new Draft Framework that outlines an approach for evaluating the reserves for a category of life insurance products.  The purpose of the Draft Framework is to develop a uniform interpretation regarding existing reserving requirements for universal life with secondary guidance and term universal life products.  Comments should be addressed to Dan Schelp at dschelp@naic.org or 816/783-8027.

 

HHS STRIKES AGAIN re RATES

On January 12, HHS again hit a health insurer doing business in Pennsylvania for seeking a rate increase exceeding ten percent.  Trustmark Life Insurance Company, a division of Trustmark Companies in Lakeforest, Illinois, was attacked for its “excessive” increase of 13 percent and was told to “rescind the rates, issue refunds to consumers or publically explain their refusal to do so.”  HHS was using its authority granted by the Patient Protection & Affordable Care Act (PPACA) in reviewing insurer rate increases despite Pennsylvania’s passage of Act 134 of 2011 (SB 1336) restoring rate review authority to the state’s Insurance Department.  Trustmark markets health products in five states: Alabama, Arizona, PA, Virginia and Wyoming.  Earlier, HHS slammed a Mennonite insurance company, Everence, for a ten-percent increase for PA small groups and the company refused to back down despite HHS condemnation.

 

POLITICS & RETIREMENTS

  • State Senator John Rafferty (R-Montgomery) has suspended his campaign for the Republican nomination for Attorney General.
  • State Rep. Mario Scavello (R-Monroe) announced that he is seeking the GOP nomination for State Senator in the new Monroe county district created by reapportionment.
  • Rep. Larry Curry (D-Montgomery) is retiring at the end of this legislative session as is Democratic Rep.  Dante Santoni (Berks).
  • Senator Stewart Greenleaf (R-Montgomery) was a candidate for President in the New Hampshire primary.
  • New Allegheny County Chelsea Wagner says she has no plans to relinquish her PA House seat per PoliticsPA after receiving word that a special election to fill her seat would have to be held in Allentown where reapportionment moved her legislative district from Pittsburgh.  She will keep her legislator salary but forgo the county salary for Controller.
  • Arguments for the eleven lawsuits challenging the new reapportionment maps will be heard by the PA Supreme Court on January 23, one day before the first day nominating petitions may be circulated.

 

NAIC ADDS DI TO INTERSTATE COMPACT LIST

On January 11, the National Association of Insurance Commissioners (NAIC) announced that individual disability income (DI) insurance policies are included in the product mix addressed by the Interstate Insurance Product Regulation Commission.  This means that a DI product approved in one Compact state, if approved by the Commission, could be sold in the other Compact states without prior approval from each separate regulator.  Seen as a way to speed product to market, the concept was advanced by former PA Insurance Commissioner Diane Koken and of course, Pennsylvania is a part of the Commission.  NAIC is offering webinars January 25, February 2 and February 8.  Details: www.insurancecompact.org.   In addition, there is a new Filing Information Notice to assist companies wanting to submit their DI products for compact approval.

Per the Milliman Interstate Compact Survey report released January 10, the number of insurers utilizing the Compact is 132, a 78% increase from 2009.

 

MARKET NOTES

  • Rough Notes magazine profiled two Pennsylvania agencies in its January 2012 issue.  First is The Seltzer Group from Orwigsville, PA as a candidate for the 2011 Agency of the Year.  Second is Pittsburgh’s Seubert & Associates in an article ‘Taking Control of Health Risks Pays Off’.
  • The Bureau of Labor Statistics says that the U.S. insurance industry added 3,300 jobs in December 2011.  This puts it about on a par with April 2011 and 0.39% above December 2010.  November’s job picture was virtually unchanged with the insurance industry losing 100 jobs.
  • In 2012, the National Insurance Crime Bureau (NICB) marks its 100th year of fighting insurance fraud.
  • According to Insurance & Financial Advisor January 6, Maryland’s Health Benefit Exchange wants to build on the expertise of Maryland’s agents and brokers as it develops the Navigators in MD.

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LEG REG REVIEW 2012, 2d Issue January 9

Jan 10

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.

 

SESSION DAYS FOR 1st QUARTER 2012

Session days through March are:

January: 17, 18, 23, 24, 25 (both House and Senate)

February: 6, 7, 8 (both House and Senate); 13, 14, 15 (House)

March: 5, 6, 7 (Senate), 12, 13, 14 26, 27, 28 (both House and Senate)

Governor Corbett delivers his Budget proposal for FY 2012-13 on February 7.  Legislative appropriations hearings on the proposed State Budget take place in February and March.

 

CORBETT FREEZES BUDGET

On January 4, Governor Corbett announced a freeze in spending in the State Budget in many categories and reduced expenditures on average by three percent because state revenues simply have not met expectations.  December’s shortfall was 5.9 percent off projections with $2.3 billion in revenues, or $141.5 million less than anticipated.  This followed Budget numbers for November showing $1.719 billion with $63.3 million (3.5%) below the estimate. The year-to-date shortfall through November 30 was $486.8 million or 4.0% below expectations.  The only areas where tax revenues exceeded estimates in December were inheritance taxes which garnered $100,000 over estimate (although the YTD is 4.4% below) and taxes on cigarettes, gambling, beer and alcohol which were $2.6 million over estimates in December and 1.3% above for the fiscal year thus far.

The Insurance Department lost $555,000 in general government operations because of Governor Corbett’s decision to now be $17.9 million but did not lose any CHIP program funding ($97.365 million).

Others losing 3 percent in general operating monies were the Governor’s and Lt. Governor’s and other Executive Offices, the General Assembly, the State Judiciary, Health Department, Labor & Industry, Agriculture, DCED, Conservation & Natural Resources, Corrections, Education (although not to Pupil Transportation or Libraries or Basic Education Funding) , DEP, Public Welfare, Revenue, State, and PennDOT.  State Police lost one percent as did the Probation and Parole Board.  Spared from the budget knife were PA Emergency Management Agency, Environmental Hearing Board, and Office. of the Treasurer.  Sure to generate political fire are five-percent cuts to State System of Higher Education, Head Start Supplemental Assistance, and the state-affiliated schools of Penn State, University of Pittsburgh, Temple and Lincoln Universities.

 

IRS ISSUES W2 PPACA NOTICE

The Internal Revenue Service issued Notice 2012-9 regarding employer obligations to report benefits on employees’ W-2s in 2013 for calendar year 2012.  The IRS says that the aggregate value of health benefits will include the cost of coverage provided under hospital indemnity or other fixed indemnity insurance or cost of coverage only for a specified disease such as cancer insurance.  Not included are costs of supplemental health benefits that employees pay for with after-tax dollars.  The Patient Protection Affordable Care Act (PPACA) specified that W-2s contain aggregate cost of health benefits for 2011 but the IRS made it voluntary for this last year.  A link to the IRS Notice appears below.

http://www.irs.gov/pub/irs-drop/n-12-09.pdf

 

HOUSE INSURANCE COMMITTEE MAY CONVENE OCA HEARING

On February 16, the House Insurance Committee may schedule a hearing on legislation that would establish an Office of Consumer Advocate (OCA) for Health Insurance.  HB 717 (Matzie-D-Allegheny) would establish the OCA as a watchdog office within the Department of Community & Economic Development (DCED) to assist consumers if they feel unfairly or illegally treated by a health insurance company or health insurance producer.  While similar legislation has been sponsored for years, the bill is somewhat more noteworthy because of PPACA’s requirement that each state establish an ombudsman for health insurance consumers, something which Pennsylvania has not done.  The bill has 26 sponsors, 24 of which are Democrats.  In the Rendell Administration, the Office of Consumer Liaison was established within the Insurance Department as an alternative to creating a new government entity.  It is unclear as to what the Corbett Administration will do relative to the PPACA mandate.  Funding for OCA would come from grant applications to HHS under PPACA.  The bill gives OCA these powers:

- to represent interests of consumers as a party or represent an interest of consumers before the Insurance Department

- represent consumers in court or before an agency or regulatory body as deemed appropriate by the OCA

PAHU’s position is that HB 717 is unnecessary given the Insurance Department’s traditional responsibilities to protect insurance consumers.  Rather than create a new office, PAHU holds that the Department should receive adequate funding and staff in the Budget to better meet this need.

 

POLITICAL UPDATE

Two members of the PA Senate announced that they will not seek re-election next year.  They are Mary Jo White (R-Venango) and Jane Earll (R-Erie).  Senator White chairs the Senate Environmental Resources & Energy Committee.  Senator Earll chairs the Senate Community, Economic & Recreational Development Committee and is a member of the Senate Banking & Insurance Committee.

 

NUMBERS, NUMBERS

  • FEMA reports that disaster assistance of grants and loans to Pennsylvanians following Hurricane Irene and Tropical Storm Lee totaled more than $383.4 million.
  • RE Workers Compensation, per a January 7 Notice from the PA Department of Labor & Industry, the Statewide Average Weekly Wage is $888.00 per week for injuries occurring on or after January 1, 2012.

 

PA DEPARTMENTS ISSUE NOTICE REGARDING HHS AND PPACA

Published in the December 31, 2011 PA Bulletin was a joint Notice from the PA Insurance Department and the PA Health Department regarding HHS’ external reviews allowed by the Patient Protection Affordable Care Act (PPACA).  Specifically, the Notice says that unless there is an explicit replacement by Federal law, Act 68 (Article XXI of the Insurance Company Law) remains in effect.  Examples where authority will be retained by the Department are: complaints, network adequacy, prompt payment of health claims, contract review, and credentialing.   Adverse benefit discrimination is dealt with by the US Department of Health & Human Services under PPACA.

The Insurance Department does however require from health insurers by January 31, 2012 a certification that policy language changes re review processes comply with PPACA.

 REMINDER…Insurance agencies and companies are invited to have PHILLIPS ASSOCIATES provide your in-house Continuing Education.  It is time well spent considering that staff does not need to travel and can still put out ‘brush fires’ during breaks and during a lunch period.  It is also economical and will not represent a strain on resources.  Insurers combine this CE with their own product updates to agents during their company agent meetings.  NOTE: Part of an agency’s subscription to Producer Plus includes two hours of free in-house CE.  Go to www.vphillipsassoc.com for a listing of courses or call 717/732-7255 for more information.

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LEG REG REVIEW 2012, 1st Issue January 3

Jan 6

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.

 

BAKER TO INTRODUCE EXCHANGE LEGISLATION

Rep. Matt Baker (R-Bradford) is planning to introduce Health Insurance Exchange shortly after the New Year.  It establishes a regulatory framework within the PA Insurance Department to meet the requirements of the Patient Protection Affordable Care Act (PPACA).  It falls more in line with the Utah Model where the Exchange acts as a facilitator to help people find coverage in the private sector.  Those seeking an Exchange insurance product would be required to utilize a licensed insurance producer and Navigator responsibilities would be limited to distributing general information but not advising regarding the particular aspects of the Exchange unless there would be an insurance license.  Baker chairs the House Health Committee.  PAHU strongly favors the Baker approach and is launching a grass roots campaign during the legislative recess to help gain sponsors for the legislation.  The Corbett Administration is still working on its own Exchange proposal with language expected by mid-January.

 

NFIP GETS ANOTHER LIFELINE

The National Flood Insurance Program (NFIP) received a short-term extension of its authority to offer flood insurance due to the signing of the FY 2012 Omnibus Appropriations bill by President Obama on December 23.  The program is functional through May 31, 2012 and Congress will again have to address the issue then.

 

CHANGES FOR THE NEW YEAR

  • Teen driving means more supervised driving (from 50 to 65 hours) including nighttime driving (10 hours) and driving in adverse weather conditions (5 hours).  Except for family members, there is a new restriction on the number of passengers.
  • No more texting behind the wheel.
  • Under Unemployment Compensation legislation, a claimant must actively search for work in order to be eligible for benefits.  For benefit years beginning on or after January 1, receipt of severance pay will cut into a person’s UC benefits.
  • Mileage rates for 2012 per IRS Notice 2012-1 are 55.5 cents per mile for business miles driven, 23 cents per mile for moving or medical purposes and 14 cents per mile may be counted for miles driven in service of charitable organizations.
  • On January 1, the PA Turnpike is penalizing those preferring to pay with cash instead of EZ Pass.  Cash customers will pay ten percent more. The Turnpike doesn’t like cash?

 

REGULATORY UPDATE

  • The comment period has expired for the PA Banking Department’s proposed regulation on continuing education under the Debt Management Services Act.  This CE is required for all credit counselors, supervisors, and managers.  Text of the rule is found in the PA Bulletin December 3, 2011.  (www.pabulletin.com)
  • Torus National Title Insurance Company has filed an application to acquire First Sealord Surety, a PA casualty insurance company.
  • The Title Insurance Rating Bureau has filed a request for the Insurance Department to approve an overall 7.0% increase which will take effect March 1, 2012.

AN OPEN LETTER FROM PHILLIPS ASSOCIATES

 

Dear Professional Colleague:

PHILLIPS ASSOCIATES began on April 1, 1999.  In October 2002, we expanded our services to agencies and these have been expanded several times since then.  My letter to you is simply to ask that you take advantage of what my firm has to offer.  Please also check some of these services out at our web site www.vphillipsassoc.com or call me at 717/346-1063.  My email is xenobun@aol.com.

 

Continuing Education

There are over 70 PHILLIPS ASSOCIATES courses approved by the PA Insurance Department to help your producers and CSRs meet their Continuing Education requirements.  Why not have us teach your people in-house?  They (and you) will save time and money AND they won’t be away from the office!.

 

Speaking to Groups

Dozens of speeches and CE presentations are given each year to organizations such as various I Days, NAIW or NAIFA chapters, etc. on a range of topics from Insurance Legislative Updates to the Patient Protection Affordable Care Act (PPACA), the massive federal health care law (125 talks in 2011).  Many presentations are also approved for one and two-credits of CE.  Many nonprofit speeches are given pro bono or in trade.  PHILLIPS ASSOCIATES has also been a CE resource for insurance companies as part of their agent meetings.

 

PRODUCER PLUS and Agency Services

These are available on a subscription basis and offer many benefits including in-house CE, access to legal counsel specializing in insurance, and assistance in the regulatory realm.  These are limited to twenty agencies per year to make sure that subscribers receive as much individual attention that they need.

 

LEG REG REVIEW

A free member service if you are a member of the Pennsylvania Association of Health Underwriters or Manufacturers Association of South Central PA and available by subscription for $100 per year otherwise.

 

Lobbying and Advocacy

NOT meant to take away from any association’s lobbying value to its members, PHILLIPS ASSOCIATES has done some “boutique” advocacy for special needs or tightly focused projects.

I look forward to hearing from you as to how my firm can be a resource to yours.  Best wishes for the New Year.

Vince Phillips

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