Posts Tagged Healthcare Reform

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

Tags: 14th Issue April 18, 2011, GPAHU, Healthcare Reform, LEG REG REVIEW 2011, NAHU, PAHU, Phillips Associates, Vince Phillips

LEG REG REVIEW 2011, 8th Issue February 28, 2011

Mar 2

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SPRINKLER REPEAL BILLS INTRODUCED

House Bill 377 (Everett-R-Lycoming) would repeal the mandatory residential sprinkler requirement for new construction in the PA Construction Code Act. The provision became effective January 1, 2011 after an appeal for injunctive relief from the PA Builders Association was rebuffed by the court. HB 377 also exempts log walls in structures exceeding certain energy standards. The legislation does require that sprinklers be offered by the builder as an option. Another sprinkler mandate repeal bill entered the mix on February 16 with the introduction of House Bill 725 by Rep. Donna Oberlander (R-Clarion). HB 377 is up for a vote this week in the House Labor & Industry Committee (formerly called House Labor Relations Committee).

Already, fire protection groups and their legislative allies led by Senator Tim Solobay (D-Washington) have convened a rally to oppose the bill. In addition to builders, insurance companies are concerned regarding law and ordinance coverage and what accidental sprinkler claims will do to homeowners’ insurance rates.

adultBasic UPDATE

Senator Michael Stack (D-Phila.), Minority Chair of the Senate Banking & Insurance Committee introduced legislation to fund adultBasic for the next year by using legislative account surplus money. SB 420 would allocate $188.5 million to fund the insurance of 40,000 adults who lose coverage because of the financial demise of the adultBasic program. In his press conference, he did recognize the Blues’ role in sustaining the program through the Community Reinvestment Agreement which expired December 31, 2010. In the meantime, Senate Minority Leader Jay Costa (D-Allegheny) convened a press conference on February 22 to propose that the state chip in $25 million, insurance companies $25 million and adultBasic enrollees $4 million. The Corbett Administration answer to the demise of adultBasic funding issue has been to provide coverage access to the Blues’ Special Care plans. This resulted in some political pushback from those who felt that a price jump from adultBasic’s $36 per month for individual coverage to about $135.00 a month under Special Care worked a hardship on those enrollees. Corbett also requested funds from unspent Federal Risk Pool money under the Patient Protection Affordable Care Act (PPACA) but HHS has not yet ruled on the request.

PHIX CANCELLED

According to TechQuest Communications headed by former House member Kelly Lewis, the PA Health Information Exchange Project (PHIX) contract has been cancelled by the Department of General Services. PHIX was keenly supported by the Rendell Administration as a way to help doctors’ access test data done by others so as to reduce duplicative diagnostic testing. The project which received start-up Federal money was halted because of the state budget situation. ARRA (Stimulus Package) funding would have come for only one more year and there was no clear way to fund the project. Despite Rendell Administration persuasion, health carriers remained skeptical about PHIX’ financial sustainability. In addition, other groups such as PAHU said that PHIX would not be embraced by doctors who, because of lawsuit fears, would continue to oversee their own testing even if recent tests performed by others were available. On March 2 the Senate Communications & Technology Committee will conduct a hearing on medical information exchanges. (Details: klewis@tccp.org)

This upcoming hearing on the exchange idea includes witnesses favorable to the concept such as the PA Medical Society and the PA Hospital & Healthsystem Association of PA as well as a specific hospital in Lancaster and the Lehigh Valley Health Network.

ADDITIONAL COMMITTEE ACTIONS

• House Labor Relations Committee held an informational hearing February 15 on the state of the PA Workers’ Compensation market. The PA Compensation Rating Bureau testified that the frequency of WC claims has continued an annual decline of about 6% a year in Pennsylvania. PCRB also added that the Workers’ Compensation market in PA is competitive with 360 carriers active in that market.

• The House Judiciary Committee February 15 moved House Bill 495 (Gillespie-R-York) to protect medical care providers from medical malpractice liability when they apologize for a mistake. Doctors and the Hospital & Healthsystem Association of PA maintain that doctors do not apologize for fear of admitting wrongdoing and triggering a lawsuit. When they do not apologize, angry patients will sue anyway. Their answer is to encourage doctors in having frank conversations with patients. A companion bill is Senate Bill 565 (Vance-R-Cumberland) which also provides liability protection for a benevolent gesture.

A NEW LAW RAISES AGENT CONCERN

PA’s NEW Construction Workplace Misclassification Act has generated concern from an agents’ trade association. IA&B suggested that the law’s ambiguity has resulted to “the law’s lack of clarity, equating to confusion and potential exposure for (IA&B) members.” Details: IA&B 800/998-9644

FEDERAL HEALTH CARE UPDATE

Two congressional bills would repeal Flexible Spending Accounts FSA Cap Provision in the Patient Protection Affordable Health Care Act. U.S. Sen. Kay Bailey Hutchison (R-Texas) introduced S. 312, which would repeal provisions of PPACA that limits money employees can contribute to flexible spending accounts (FSAs) to $2,500.00 starting in 2013. A companion bill (HR 605) was introduced in the U.S. House by Rep. Erik Paulsen (R-MN.). Two Pennsylvania Representatives are part of the 38 sponsors to this House Bill. They are Republicans Charles Dent from the Lehigh Valley and Jim Gerlach from southeast PA.

CONFIRMATION HEARINGS BEGIN

The PA Senate begins confirmation hearings on Governor Tom Corbett’s nominees this week as follows:

• March 1: C. Alan Walker as Secretary of Community & Economic Development (Senate Committee on Economic Development & Recreational Development)

• March 1: John Wetzel, Secretary, Corrections Dept. (Senate Judiciary Committee)

• March 1: Sheri Phillips, Secretary, Dept. General Services (Senate State Government Committee)

• March 1: Michael Krancer, Secretary, Dept. of Environmental Protection (Senate Environmental Resources & Energy Committee)

• March 7: Ronald Tomalis as Secretary of Education (Senate Education Committee)

MARCH CE ‘SPRINGS’ INTO ACTION

March sees a number of Continuing Education opportunities. Approved for six credits are classes on the Insurance Implications of Marcellus Shale offered by the SPARKS Club in conjunction with Phillips Associates on March 22 in Williamsport and March 23 in Warrendale. (Details: www.sparksclub.com) At month’s end, eight hours of Long-Term Care Insurance education will be offered in Horsham to enable agents to meet the new Insurance Department CE requirement for agents in that market. March 30 and April 1 are the dates. (Content questions- rfs70@aol.com; registration information jtrout2798@aol.com.

Tags: 2011, 8th Issue February 28, GPAHU, Healthcare Reform, LEG REG REVIEW 2011, Legislative Review, NAHU, PAHU, Vince Phillips

LEG REG REVIEW 2011, 6th Issue February 7, 2011

Feb 9

Posted by GPAHUAdmin in Legislative | No Comments

CORBETT PICKS MORE; TWO LEFT

Governor Corbett has nominated three more to round out his Cabinet, leaving only two major spots unfilled. Remaining are the Secretaries of the Department of Conservation & Natural Resources (DCNR) and Labor & Industry (L&I). Most recent nominations are:

- George Greig for Secretary of Agriculture. He serves on the State Board of the PA Farm Bureau and is a practicing farmer from northwest PA. One of his many challengers will be to continue state funding for the Crop Insurance Premium Subsidy Program given the state’s dismal budgetary situation.

- Brian Duke for Secretary of Aging. He is Director of the Bucks County Area Agency on Aging and former Executive Director of the New Jersey Foundation on Aging.

- Major General Wesley Craig as Adjutant General. He is chairman of the PA Committee for Employer support of the National Guard and retired as Commanding General of the 28^th Division, PA National Guard in 2006.

POLITICAL UPDATES

Maria Donatucci won the special election in Philadelphia’s 185^th district to succeed her husband, the late Rep. Robert Donatucci who passed away in November. She received 94% of the vote in this heavily Democratic district. The R v. D margin in the House is now 112 Republicans to 91 Democrats.
Rep. Josh Shapiro (D-Montgomery) is seeking the position of Montgomery County Commissioner after his former boss Joe Hoeffel decided not to seek re-election.
Rep. Dennis O’Brien (R-Phila.) appears to be seeking a spot on the Philadelphia City Council. A former Speaker of the House, O’Brien is also known for his advocacy on behalf of families facing autism. He shepherded an autism spectrum mandated benefit through the General Assembly.
Former Rep. David Steil (R-Bucks) has been named President of single payer advocacy group HealthCare4AllPA.
Rep. Doug Reichley (R-Lehigh) is running for Judge of the Court of Common Pleas in Lehigh County.

JANUARY REVENUES EXCEED PREDICTION

According to the PA Department of Revenue, revenues exceeded estimates in January by 3.4% or $72.8 million. This is important in that it helps set the stage for Governor Corbett’s March presentation of the proposed state Budget for FY 2011-12 by suggesting that economic activity is at last being seen in increased state revenues. Year to date revenues are $13.7 billion, showing $267 million over estimate.

PPACA REPEAL EFFORT FAILS IN SENATE but PPACA LOSES A COURT ROUND

Nationally, the Patient Protection Affordable Care Act (PPACA) saw a courtroom loss but was vindicated of sorts by a partisan vote in the US Senate. The Florida decision designated PPACA’s individual mandate as unconstitutional but fell short of imposing an injunction that stops implementation. The ruling does propel calls to the US Supreme Court to consider at least some of the lawsuits winding their way through the judicial system. Pennsylvania’s two Senators reflected the partisan divide with Republican Pat Toomey voting to repeal and Democrat Bob Casey Jr. voting to support PPACA.

HHS STUDY SAYS PPACA SAVINGS ABOUND

The Obama Administration claims that some families can save up to $14,900 annually because of the Patient Protection Affordable Care Act (PPACA). The January 28 report says that a family of four with a $33,525 income could see as much as $14,900 because of tax credits and reduced cost sharing; small employers could save up to $350 per family policy; and “all businesses will likely see lower premiums of $2,000 per family by 2019.” The small business health insurance premium tax credits are supposed to save small businesses six billion dollars in 2010 and 2111. The report text can be found at:

http://www.healthcare.gov/center/reports/premiums01282011a.pdf

CIVILITY MAY BE ECLIPSED

The national conversation on civility may be taking a back seat to political attacks. In recognition of conservative charges that PPACA is a stepping stone towards socialized medicine and the recent court setback for PPACA, Democrats upped the ante with the following e-mail blast from Organizing for America, a Democratic National Committee program:

We’re on the side of the young adults who can now stay on their parents’ health plan until they turn 26. …We’re on the side of the seniors who used to pay thousands out of pocket because they fell in the “donut hole” in prescription drug coverage…. We’re on the side of the people the insurance companies can no longer discriminate against, like children who have a pre-existing condition.

That’s why we fought for reform in the first place.

That’s why we can’t stand by while the other side tries to tear it down, exposing millions of Americans once again to the whims of the insurance industry. It’s why we can’t just sit back while a few activist judges rehash last year’s debate as they attempt to legislate from the bench and strike down provisions in the bill.

REGULATORY UPDATE

L&I announced that the maximum Workers’ Compensation payable based on the Statewide Average weekly Wage is $858.00 per week in 2011.
The PA Council on Aging announced 2011 meeting dates as February 23; April 20; June 8; September 7; December 7 Details: William White 717/783-1550
United Fire & Casualty Company is seeking to acquire Mercer Insurance Company and Franklin Insurance Company (stock P/C).
Penn Reserve Insurance Co. Ltd. has applied for a Certificate of Authority from the Insurance Department to operate as a stock casualty insurance company in PA.

TWO SURPLUS LINES NOTICES

Surplus Lines licensees might take note of two regulatory items. First is PA Bulletin Vol. 41, Number 4 (www.pabulletin.com) which lists the Eligible Surplus Lines Insurer List which replaces in its entirety the list published July 1, 2010. The second is a February 5 posting where the Insurance Department has issued its annual call to the Surplus Lines community to determine if there are any types of insurance deemed to be so unavailable in the standard market that there are automatically considered E&S with no need for the usual declinations. This is called the Export List. Comments are due the first week of March to Cressinda Bybee FAX 717/787-8557 (cbybee@state.pa.us )

INDUSTRY NOTES

SPARKS Club is offering two seminars on the Insurance Implications of Marcellus Shale in Williamsport and Warrendale/Mars on March 22 and 23 respectively. This course is pending approval for six CE credits. Details: www.sparksclub.com

Central PA I Day will be held April 21 in Camp Hill. Among the speakers is NAHU’s Adam Brackmyre who will brief attendees on PPACA implementation and prospects for change or repeal at the national level. Details: Sharon Lane (slane@centralpaiday.com) or Rob Berger (rberger@MyBBSonline.com)

Tags: 2011, 6th Issue February 7, Former Rep. David Steil, GPAHU, Healthcare Reform, LEG REG REVIEW 2011, Maria Donatucci, NAHU, PAHU, POLITICAL UPDATES, PPACA, Rep. Dennis O’Brien, Rep. Doug Reichley, Rep. Josh Shapiro, Vince Phillips

LEG REG REVIEW 2011, 4th Issue January 24, 2011

Jan 25

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INSURANCE COMMITTEE MEMBERS NAMED

Both the House and Senate have finalized their membership list for the committees which oversee insurance and financial services. In the Senate, the Senate Banking & Insurance Committee handles both banks and insurance while the House has split responsibilities between Insurance and Commerce Committees. Republicans are the Majority Chairs in both House and Senate.

SENATE BANKING & INSURANCE COMMITTEE

Republicans

Chairman Don White (Indiana)

Members: Kim Ward (Luzerne); Pat Browne (Lehigh); Jake Corman (Centre); Jane Earl (Erie); Stewart Greenleaf (Montgomery); Tom Rafferty (Montgomery); Pat Vance (Cumberland)

Democrats

Chairman Mike Stack (Phila.)

Members: Lisa Boscola (Northampton); Larry Farnese (Phila.); Christine Tartaglione (Phila.); Anthony Williams (Phila.)

HOUSE INSURANCE COMMITTEE

Republicans

Chairman Nicholas Micozzie (Delaware)

Members: Scott Boyd (Lancaster); Gary Day (Berks); Bob Godshall (Montgomery); Glen Grell (Cumberland); Seth Grove (York); C. Adam Harris (Juniata); Tom Killion (Delaware); Marguerite Quinn (Bucks); Brad Roae (Crawford); Curt Schroder (Chester); Justin Simmons (Lehigh); Curtis Sonney (Erie); Mike Tobash (Schuylkill); Katherine Watson (Bucks)

Democrats

Chairman Tony DeLuca (Allegheny)

Members: Bryan Barbin (Cambria); Brendan Boyle (Montgomery); Dom Costa (Allegheny); Florinda Fabrezio (Erie); Nick Kotik (Allegheny); Robert Matzie (Allegheny/Beaver); Eddie Day Pashinsky (Luzerne); Josh Shapiro (Montgomery); Matthew Smith (Allegheny)

Those more focused on financial services than insurance will note that the two House Commerce Committee Chairs are unchanged except that the Republicans are now in charge of that committee. Majority Chair is Dick Hess (Bedford) and Minority Chair is Peter Daley (Fayette). Other committees of interest to those in the Workers’ Compensation insurance market are the Senate Labor & Industry Committee chaired by John Gordner (Columbia) for the Republicans and Christine Tartaglione (Phila.) as Democratic (Minority) Chair. The House Labor Relations Committee is chaired by Republican Ron Miller (York) and Democrat (Minority) Bill Keller (Phila.)

Those interested in Crop Insurance will take note that both the Majority and Minority Chairs of the Senate Agriculture & Rural Affairs have changed with former Chair Mike Brubaker becoming Finance Committee Chair and the death of former Senator Michael O’Pake on the Democratic side. New Chairs are Senator Elder Vogel (R-Lawrence) and Minority Chairman Lisa Boscola (D-Northampton). House Agriculture & Rural Affairs Committee Majority Chair is Rep. John Maher (R-Allegheny/Washington) while the new Minority Chair is Rep. Joseph Petrarca (D-Westmoreland).

RENDELL COMMITTEE ISSUES FINAL EXCHANGE REPORT

The Rendell Administration committee tasked with developing recommendations on how to implement parts of the Patient Protection Affordable Care Act in Pennsylvania has done so. These suggestions are not binding on the Corbett Administration. Link to text follows below:

http://mail.aol.com/33069-111/aol-1/en-us/mail/get-attachment.aspx?uid=1.30944505&folder=NewMail&partId=4&saveAs=Health%2520Care%2520Reform%2520Implementation%5b1%5d.pdf

CORBETT ADMINISTRATION UPDATE

Guy Ciarrocchi, 46, will serve as Chief of Staff to Lieutenant Governor Jim Cawley. Ciarrocchi was Executive Director of the PA Coalition of Public Charter Schools and previously was PA U.S. Rep. Jim Gerlach’s (R-6^th) Chief of Staff.
Another Deputy Chief of Staff is Luke Bernstein, who had previously worked for former U.S. Senator Rick Santorum.

CORRECTION: Last week’s Leg Reg Review posted Andrew Dinniman as hailing from Delaware County. He of course actually represents constituents in Chester and Montgomery Counties.

GENERAL ASSEMBLY UPDATES SESSION SCHEDULE for First Half 2011

January 24, 25, 26

February 7, 8, 9, 14, 15, 16, 28

March 1, 2, 7, 8, 9

April (4 House only) 5, 6, 11, 12, 13, (25 House non-voting) 26, 27

May 2, 3, 4, 9, 10, 11, 23, 24, (25 House only)

June 6, 7, 8, 13, 14, 15, 20, 21, 22, 23, 24, 27, 28, 29, 30

ITEMS TO NOTE

· The vote last week by congressional House Republicans to repeal the Patient Protection Affordable Care Act (PPACA) went according to party lines per the vote by the Pennsylvania delegation to the U.S. House. All PA Democrats voted against repealing it including two who had voted against original passage, Jason Altmire from Allegheny County and Tim Holden from central PA. All Republican Members of Congress voted for repeal.

· NAHU convenes national Capitol Conference for health insurance brokers to discuss PPACA and other reform issues in Washington, DC February 13-16. In addition to legislative appointments, there are a number of workshops on the Exchanges and other current topics. Details; www.nahu.org

Tags: 11th Issue, Excess and Surplus Lines, GPAHU, Healthcare Reform, IRRC, Joan Troutman, LEG REG REVIEW 2010, MASCPA, NAHU, Risk Pool, Vince Phillips

LEG REG REVIEW 2011, 3d Issue January 17, 2011

Jan 19

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INSURANCE COMMISSIONER DESIGNATED BY CORBETT

Governor Corbett has tapped Harrisburg attorney Michael F. Consedine to be his Insurance Commissioner. A senior insurance attorney for Saul Ewing, Consedine has specialized in a number of insurance areas with particular focus on Pennsylvania’s Mutual Insurance Companies (property casualty) and his representation of “a major central Pennsylvania health insurer in raising anticompetitive and legal objections to the proposed merger of two other dominant Pennsylvania health insurers” (source: www.saul.com/attorneys/bio.aspx?attID=410 )

Prior to joining Saul Ewing, Consedine saw government service during the Ridge Administration as Insurance Department Counsel. Among the areas on which he worked was the legal work connected with Act 40, the statute regulating how banks may sell insurance, and Act 154, the legislation designed to prevent “churning” by life insurance companies. He was also a member of Corbett’s Transition Team. His nomination requires Senate confirmation. Once confirmed, he will succeed Acting Commissioner Robert Pratter.

CORBETT ADMINISTRATION UPDATE

A number of other Corbett choices have also been made. Cabinet appointments require Senate confirmation.

Another Saul Ewing attorney, Steve Aichele of Chester County, will be General Counsel to the Administration.
Department of Education Secretary pick is Ron Tomalis, a former U.S. Department of Education official.
PennDOT Secretary will be Barry Schoch who currently is vice president for transportation company McCormick Taylor in central PA and is President of the PA Highway Information Association.
Inspector General will be Kenya Mann Faulkner, a partner in the Philadelphia law firm of Ballard Spahr.
Secretary of the Commonwealth will be Carol Aichele. She is now a Chester County Commissioner and is married to fellow appointee Steve.
Glenn Cannon will direct PA Emergency Management Agency (PEMA). He worked for FEMA and Hillard Heintze Strategic Security Advisors.
DEP Secretary will be Mike Krancer, a Bryn Mawr attorney who has served under Governors of both political parties as a judge of the Environmental Hearing Board
Gary Alexander, Rhode Island’s former Secretary of Health & Human Services will head the Department of Public Welfare.
Department of Revenue will be headed by Dan Meuser, President of Pride Mobility Products.

In addition, Todd Shamash, Senior Counsel and Director of Governmental Affairs at Jefferson Health System is one of Governor Corbett’s Deputy Chiefs of Staff.

LEGISLATIVE STAFF MOVE TO ADMINISTRATION

Two senior legislative aides are taking up positions within the Corbett Administration. Andrew Ritter, formerly Executive Director of the House GOP Policy Committee, becomes Deputy Secretary of Legislative Affairs while former Senate Environmental Resources & Energy Committee Executive Director Pat Henderson will be the Administration’s point person on energy issues.

SURCHARGE EXPLANATION

Former Rep. Roy Reinard (R-Bucks) contacted Leg Reg Review to explain that the surcharge prohibition threshold increase noted in Leg Reg Review of January 10 “is in excess of one’s deductible so the new limit of $1,450.00 is added to a deductible to make one’s individual limit.” Former Rep. Reinard was the author of the original legislation establishing the surcharge restriction.

FEDERAL FINANCIAL SERVICES COMPLAINT DATA BASE ANNOUNCED

Under interim authority granted by the Dodd-Frank Act, the U.S. Treasury Department has issued a Notice with a detailed description of the complaint database that will be used by the new Consumer Financial Protection Bureau (CFPB) Implementation Team. The database provides a record of consumer complaints against the financial services industry and will be used as a resource record for use by agencies, the U.S. Department of Justice and/or courts. Comments on the Notice, which can be found here, are due on Feb. 9.

LEGISLATIVE POLITICAL MOVES

Two veteran legislators are reportedly seeking other political office. Republican Kate Harper (Montgomery) may be seeking the GOP nomination for Montgomery County Commissioner while Democrat Chelsea Wagner (Allegheny) may run for the Democratic nomination for Allegheny County Controller.

SENATE COMMITTEE CHAIRS NAMED

Committee	Republican (Majority) Chair	Democrat (Minority) Chair
Aging & Youth	Kim Ward (Westmoreland)	LeAnna Washington (Phila.)
Agriculture & Rural Affairs	Elder Vogel (Lawrence)	Lisa Boscola (Northampton)
Appropriations	Jake Corman (Centre)	Vincent Hughes (Phila.)
Banking & Insurance	Don White (Indiana)	Mike Stack (Phila.)
Communications & Technology	Mike Folmer (Lebanon)	Larry Farnese (Phila.)
Community, Econ & Rec. Dev.	Jane Earll (Erie)	Wayne Fontana (Allegheny)
Consumer Protection Prof. Lic.	Tommy Tomlinson Bucks)	Lisa Boscola (Northampton)
Education	Jeff Piccola (Dauphin)	Andrew Dinniman (Delaware.)
Envir. Resources & Energy	Mary Jo White (Venango)	John Yudichak (Luzerne)
Finance	Mike Brubaker (Lancaster)	John Wozniak (Cambria)
Game & Fisheries	Richard Alloway (Franklin)	Richard Kasunic (Fayette)
Inter-Gov. Operations	Lloyd Smucker (Lancaster)	John Blake (Lackawanna)
Judiciary	Stewart Greenleaf (Mont.)	Daylin Leach (Mont.)
Labor & Industry	John Gordner (Columbia)	Christine Tartaglione (Phila.)
Law & Justice	John Pippy (Allegheny)	Jim Ferlo (Allegheny)
Local Government	John Eichelberger (Blair)	John Blake (Lackawanna)
Public Health & Welfare	Pat Vance (Cumberland)	Shirley Kitchen (Phila.)
Rules	Dominic Pileggi (Delaware)	Jay Costa (Allegheny)
State Government	Chuck McIlhinney (Bucks)	Anthony Williams (Phila.)
Transportation	John Rafferty (Mont.)	John Wozniak (Cambria)
Urban Affairs & Housing	Eugene Yaw (Lycoming)	Jim Brewster (Westmoreland.)
Veterans & Emergency Prep.	Lisa Baker (Luzerne)	Tim Solobay (Washington)

Tags: 11th Issue, Excess and Surplus Lines, Healthcare Reform, Joan Troutman, LEG REG REVIEW 2010, Legislative Review, MASCPA, NAHU, PAHU, Phillips Associates, REGULATORY UPDATE, Risk Pool, Vince Phillips

LEG REG REVIEW 2011, 2d Issue January 10, 2011

Jan 12

Posted by GPAHUAdmin in Legislative | No Comments

GENERAL ASSEMBLY SWORN IN

On January 4, the 2011-12 session of the PA General Assembly officially began with the swearing in of members and election of Rep. Sam Smith as House Speaker and Joseph Scarnati as Senate President Pro Tempore. Another development marking a huge change for the Senate is the retirement January 6 of Steve MacNett, the long-tenured counsel who guided the Senate for decades.

One other development marking the early days of the new Senate session is the date of March 15 to fill the vacancy created by the untimely December death of Senator Michael O’Pake (D-Berks). Neither party has selected their nominee as of this writing. O’Pake’s term would have run through 2012.

Senate Republicans also picked majority committee chairmen for the new session. Leg Reg Review will print the complete list when the Senate Democrats finalize their selection. Some key Republican changes are the move of Agriculture & Rural Affairs chair Mike Brubaker to chair the Finance Committee. New Agriculture & Rural Affairs chair is Elder Vogel (Westmoreland). A new committee was established, Inter-Governmental Affairs to be chaired by Lloyd Smucker from Lancaster County.

CORBETT ADMINISTRATION UPDATE

Tapped as Secretary of Health is New Yorker Eli Avila who is now Suffolk County Chief Deputy Commissioner Dept. of Health Services where he oversees a staff of more than 1,600 and an annual budget of more than $400 million. This requires Senate confirmation.
Chief of Staff will be William F. Ward from Pittsburgh law office Ward McGough, LLC. He had previously worked for Tom Corbett in the Attorney General’s office, the state’s Probation Board, and Solicitor of the Pittsburgh Citizen Police Review Board. This does not need legislative approval.

NONDISCRIMINATION Section 105(h) RULE DELAYED

Per Notice 2011-1, the IRS announced that it is not going to force compliance with the provision of the Patient Protection Affordable Care Act that prohibits discrimination in favor of highly compensated individuals right now pending further guidance on how to comply from the agency. This provision was effective for new plan years after September 23, 2010 for non-grandfathered plans but is now on hold. IRS had earlier issued Notice 2010-63 requesting public comments on how 105(h) could be implemented.

In the new Notice, the IRS asked for additional public comments on:

- Whether the rate of employer contributions should be tested as a nondiscriminatory benefit

- Whether application of nondiscrimination standards should be conducted on a geographic basis

- What should a potential ‘safe harbor’ plan design look like

Comments are due by March 11, 2011 either in writing or by e-mail. Please refer to this link the Notice for the IRS text and details on how to submit comments.

DEP ISSUES MINE SUBSIDENCE and MINE SUBSIDENCE INSURANCE STUDY

On January 4, Department of Environmental Protection (DEP) issued a University of Pittsburgh report documenting mine subsidence from 2003-2008 over ten SW PA counties going as far as Indiana and Cambria Counties. It showed 1,247 “effects” or mine subsidence incidents reported to DEP, a 14 percent increase over the previous five-year reporting period with most centered in Greene and Washington Counties. There are only 58,000 policies in force out of an estimated one million homes potentially affected by mine subsidence. Insurance agents are able to market mine subsidence insurance due to a 2002 law. Details: 717/787-1323

REVENUE PICTURE IMPROVES AT BUDGET HALF-WAY MARK

Current doom and gloom over the Budget is tempered somewhat by revenue numbers which have picked up slightly over projections. January 3, 2011 Revenue Department numbers for December showed a 1.7 percent year-to-date collection over projections. This marks the half-way point in the state’s fiscal year with $11.5 billion collected so far. This is the first time since 2007 that half-year receipts exceeded estimates but falls short of the needed $28 billion or so needed to balance the Budget for this FY. Corporate taxes for December were above estimate by 8.1%; Sales tax was 4.9% over estimate; Personal Income Tax for December was 12.2% over estimate. Other taxing categories: Inheritance taxes were over estimate but real estate transfer tax collections continued to be below projections year to date despite a slight increase over estimate in December.

REGULATORY UPDATE

The PA Insurance Department has increased the Accident Surcharge Dollar threshold to $1,450.00 per Notice 2011-01. This threshold is revised at least once every three years. The old cap of $1,350.00 was effective July 1, 2008. This means that effective July 1, 2011, an insurer will not by law penalize their policyholders by cancelling or imposing a surcharge on a personal automobile policy where an accident has occurred with damages less than $1,450.00.
The PA Health Care Cost Containment Council (PHC4) is meeting January 13. Details: 717/232-6787
The PA Bulletin for January 1, 2011 (Vol. 41, No. 1) Part II contains an index of 2010 Notices issued by the Insurance Department, Banking Department, and other state agencies sorted by topic.
PA Department of Transportation issued a correction to a regulation previously issued October 9 relevant to denial of a driver’s license due to medical, vision, and mental standards. Details: www.pabulletin.com

WINTER DRIVING HOME REMEDIES (Courtesy of PA Moving & Storage Associates)

- Keep your headlights clear with car wax Just wipe ordinary car wax on your

headlights. It contains special water repellents that will prevent that messy mixture

from accumulating on your lights – lasts 6 weeks.

- Squeak-proof your wipers with rubbing alcohol Wipe wipers with a cloth

saturated with rubbing alcohol or ammonia. This one trick can make badly streaking

& squeaking wipers change to near perfect silence & clarity.

- Ice-proof your windows with vinegar Frost on its way? Just fill a spray bottle with three

parts vinegar to one part water and spritz it on all your windows at night. In the

morning, they’ll be clear of icy mess. Vinegar contains acetic acid, which raises the

melting point of water—preventing water from freezing!

- De-ice your lock in seconds with hand sanitizer Just put some hand sanitizer gel on

the key & the lock and the problem is solved!

CORRECTION: Leg Reg Review for December 29, 2010 contained an inaccuracy regarding the Top 25 Fastest Growing Independent Insurance Agencies in the United States. The substance of the article was correct. Keystone Insurors Group won that distinction of being second from 2008-2009 but the citation was wrong. The correct citation should have been Insurance Journal National Region edition for December 6, 2010.

Tags: 11th Issue, Excess and Surplus Lines, Flood Insurance, Governor, Healthcare Reform, LEG REG REVIEW 2010, Phillips Associates, REGULATORY UPDATE, Risk Pool, Vince Phillips

LEG REG REVIEW 2011, 1st Issue January 3, 2011

Jan 4

Posted by GPAHUAdmin in Legislative | No Comments

HOUSE PICKS COMMITTEE CHAIRS

Both Republicans and Democrats designated who will chair the 2011-2012 PA House committees. Major organizational developments are the elimination of the House Intergovernmental Affairs Committee which had been chaired by W. Curtis Thomas (D-Phila.) and Chris Ross (R-Chester) and the split of the House Health & Human Services Committee into two, the Health Committee and the Human Services Committee. In all, there are ten new GOP chairs and eleven new Democratic chairs. The other shift is ideological where some committees now have chairs more conservative than their predecessors. New Labor Relations Committee Chair is Ron Miller (R-York); succeeds more moderate Gene Digirolamo (R-Bucks) who was re-assigned to chair the Human Services Committee. Labor Relations Committee originates Workers’ Compensation legislation. New State Government Chair is Daryl Metcalfe (R-Butler) replacing Kerry Benninghoff (R-Centre) who is the new Finance Committee Chair. The Finance Committee is pivotal since that’s where tax legislation originates.

Continuity prevailed in two other committees although roles of the committee chairs were reversed with the Republican being the Majority Chairman. Insurance Committee Chair is Nicholas Micozzie (R-Delaware) with Tony DeLuca (D-Allegheny) becoming Minority Chair. The Commerce Committee which handles banking and financial services is now chaired by Dick Hess (Bedford) with Peter Daley (Wash.) becoming Minority Chair.

Committee Republican (Majority) Chair Democrat (Minority) Chair

Aging & Older Adult Services Tim Hennesey (Chester) Larry Curry (Montgomery)

Agriculture & Rural Affairs John Maher (Butler) Joe Petrarca (Westmoreland)

Appropriations Bill Adolph (Delaware) Joe Markosek (Westmoreland)

Children & Youth Dennis O’Brien (Phila.) Louise Williams Bishop (Phila.)

Commerce Dick Hess (Bedford) Peter Daley (Washington)

Consumer Affairs Bob Godshall (Mont.) Joseph Preston (Allegheny)

Education Paul Clymer (Bucks) James Roebuck (Phila.)

Envir. Resources & Energy Scott Hutchinson (Venango) Bud George (Clearfield)

Game & Fisheries John Evans (Erie) Edward Staback (Lackawanna)

Health Matt Baker (Tioga) John Myers (Phila.)

Human Services Gene DiGirolamo (Bucks) Mark Cohen (Phila.)

Insurance Nicholas Micozzie (Del.) Tony DeLuca (Allegheny)

Judiciary Ron Marsico (Dauphin) Tom Caltagirone (Berks)

Labor Relations Ron Miller (York) William Keller (Phila.)

Liquor Control John Taylor (Phila.) Dante Santoni (Berks)

Local Government Tom Creighton (Lancaster) Robert Freeman (Northampton)

Prof. Licensure Julie Harhart (Lehigh) Harry Readshaw (Allegheny)

State Government Daryl Metcalfe (Butler) Babette Josephs (Phila.)

Tourism Jerry Stern (Blair) Thaddeus Kirkland (Delaware)

Transportation Richard Geist (Blair) M McGeehan (Phila.)

Urban Affairs Chris Ross (Chester) W. Curtis Thomas (Phila.)

Veterans & Emergency Prep. Stephen Barrar (Delaware) Chris Sainato (Lawrence)

RED FLAG RULE SOFTENS

According to Reading-based Stevens & Lee, the Federal Trade Commission’s Red Flag Rule which became effective December 31, 2010, has been softened to reduce the numbers/types of businesses covered by the new privacy rule. Originally advanced in 2007, the Red Flag Rule suffered enactment delays because of a succession of law suits from those interests claiming that they should not be considered as ‘creditors’ and thus subject to the Rule. The Red Flag Rule governs a firm’s identification of business customers so as to reduce identity theft and lists privacy breach compliance requirements. Traditional lenders such as banks, credit unions, and consumer discount companies are still governed by the December 31, 2011, Red Flag Rule. Although not updated with this latest information, the FTC’s web site www.ftc.gov has a quick tutorial regarding the Rule. The link to the Stevens & Lee material follows:

http://www.stevenslee.com/news/HC/redflagalert_phs_1210.pdf

LICENSE CYCLE FROM THE INSURANCE DEPARTMENT

The Insurance Department has asked PAHU and PHILLIPS ASSOCIATES to remind members and others in the Insurance Community that the licensing cycle has changed from two years from date of issue to two years from month of birth. This change was implemented last spring resulting in a change in licensing cycles. What this means is that the license expiration date on your printed license may not be accurate if your last renewal took place before April 2010. A link to the Department Notice follows:

Conversion to Birth Month Expiration Date for Individual Insurance Producers & Title Agents-Update

DECEMBER 31 MARKS END OF SURPLUS LINES 1609-X MORATORIUM

(This article is an excerpted reprint of the PA Surplus Lines Association December 15, 2010 Bulletin to Surplus Lines licensees.)

Per PSLA Bulletin of February 22, 2010, the Pennsylvania Insurance Department Directive 1609-X Filing Type, PSLA developed the process that became known as the 1609-X filing type. This process allowed surplus lines licensees to make filings that, for one reason or another, did not exist in PSLA’s database. In addition, the newly created 1609-X filing type enabled surplus lines licensees who never made filings in the first place to do so as required by law, without penalty. The discovery of these issues was a result of the reconciliation and examination process that has been in effect since June 2009.

In order to encourage surplus lines licensees to comply with these procedures, the Pennsylvania Insurance Department instituted a moratorium period during which surplus lines licensees have been permitted to waive the late stamping fee by selecting an “Omissions” box. During this moratorium period of March 1, 2010 through December 31, 2010 only the applicable stamping fee was due. As indicated in the February 22, 2010 Bulletin, the moratorium period ends December 31, 2010. The availability of the “Omissions” box and the option to waive the late stamping fee will be eliminated for these procedures. In addition, the 1609-X filing type will only be available for use in certain circumstances approved by the Department. The use of the 1609-X filing type is a means to maintain database integrity where a violation has taken place.

FEDS ASK FOR INPUT ON VALUE-BASED INSURANCE DESIGN re PREVENTIVE CARE

The US Department of Labor, US Department of Health and Human Services, and the IRS posted a request in the December 28 Federal Register pages 81554-81547 for information regarding Value-Based Design (VBID) plans relative to preventive care services mandated by the Patient Protection Affordable Care Act (PPACA), comments due by February 28, 2011. According to the Notice, VBID plans are described as including “provision of information and incentives for consumers that promote access to and use of higher value providers, treatments and services”. For more information please refer to:

http://webapps.dol.gov/FederalRegister/HtmlDisplay.aspx?DocId=24556&AgencyId=8

Tags: 11th Issue, Blues, COBRA, Excess and Surplus Lines, Flood Insurance, Governor, Healthcare Reform, LEG REG REVIEW 2010, Legislative Review, PAHU, Phillips Associates, REGULATORY UPDATE, Risk Pool, Vince Phillips

LEG REG REVIEW 2010, 33rd Issue December 21, 2010

Dec 29

Posted by GPAHUAdmin in Legislative | No Comments

ADVISORY COMMITTEE WRAPS UP WORK

Governor Rendell’s PA Health Reform Advisory Committee wrapped up its work December 14 by reviewing recommendations on the Patient Protection Affordable Care Act (PPACA) – mandated Insurance Exchanges. An area where relative consensus was reached include a prevailing view expressed by Acting Insurance Commissioner Robert Pratter that insurance producers do bring value to the insurance equation by helping consumers understand insurance and help settle legitimate claims by working with carriers, consumers and health providers. Punted was a formal decision as to their specific role in marketing the Exchanges. PAHU had testified November 17 on the value agents bring to the table and that Act 147 requires producer involvement in selling, soliciting and negotiating terms of the insurance contract. Vigorous discussion followed on the amount of money producers make with one Advisory Committee member suggesting that agent commissions could be eliminated by businesses/unions going directly to the carriers. Insurers successfully argued that fundamental decisions re formation of Exchanges had to wait until the new session of the General Assembly although again, there was spirited discourse.

DEPARTMENT CE REGULATION APPROVED

The Insurance Department’s long-awaited Continuing Education Regulation (11-240) was approved by the Independent Regulatory Review Commission (IRRC) on December 16. It becomes effective 60 days after publication in the PA Bulletin, something that is anticipated by year’s end (www.pabulletin.com). This rule sets forth training requirements for those selling long-term care insurance and repeats the Department’s requirement that producers selling Qualified LTC Partnerships take a special course dealing with Medicaid estate recovery. Details; Peter Salvatore 717/787-4429

IRRC also approved Insurance rules on P/C actuarial opinions, Life actuarial opinions, the 2001 CSO mortality table, and a regulation on valuation of life insurance policies.

CUT-OFF NOTICE ON adultBASIC POSTED

The PA Insurance Department posted a warning on its web site to those receiving adultBasic benefits and those on the waiting list that, absent additional monies, the program will be terminated by the end of February. At issue is the inconsistency between the end of the state’s fiscal year where the Budget assumed funding from the Community Reinvestment Agreement through June 30, 2011 even though the CRA expires December 31, 2010. CRA uses Blues’ reserves to help fund the Commonwealth’s programs for the uninsured. Originally using Tobacco Settlement dollars, adultBasic’s funding stream shifted to using CRA while the Tobacco money was diverted to meet other Rendell Administration budgetary priorities.

POLITICS

January 3, 2011, is the deadline for voters in PA’s 185^th Philadelphia district to register to vote. This registration deadline is for a special election February 1 to fill the seat of Representative Robert Donatucci (D-Phila.) who passed away. Maria Donatucci, the widow of the late Representative, is running on the Democratic side while the Republicans have Lewis Harris as their banner carrier.

RENDELL DISPUTES MEDICAID WASTE CHARGE

Per a December 20 press conference, Governor Rendell and Acting DPW Secretary Michael Nardone took sharp exception to assertions by Auditor General Jack Wagner and incoming Republicans that the Department of Public Welfare Medicaid program wasted money. Calling DPW a “convenient whipping boy”, the Governor pointed to a 28 percent reduction in errors since 2008 amounting to $5 billion since the start of his Administration. Currently, he said, the error rate is 4.07% while the eligibility error rate was 1.97%. The Department was said to monitor 27 million claims per year looking for waste. Governor Rendell also said that there is “not a chance” that the incoming Corbett Administration could save an additional one billion dollars.

BUDGET MATTERS

November $1.6 billion General Fund collections for the state were $4.5 million less than anticipated although the year to date numbers show $9.2 billion, or $14 million over estimates. Some specifics:

- Sales Tax collections for November were $661 million ($28.6 million above projections)

- Personal Income Tax collections were $657 million or $22.4 million below expectations)

- Corporation taxes were $48.3 million ($6.6 million below estimates)

- Inheritance taxes were $65.6 million (+ $3.8 million); Realty Transfer taxes were $20.6 million ($4.7 million below)

Governor Rendell Administration’s mid-year assessment projected a $63 million deficit by the end of the 2010-2011 FY ending June 30, 2011.

WORKERS’ COMPENSATION FILING SHOWS LITTLE CHANGE

On November 30, 2010, the Department received a filing request from the PA Compensation Rating Bureau (www.pcrb.com) requesting an overall 0.87% increase in loss costs effective April 1, 2011, if approved. A separate filing came from the Coal Mine Compensation Rating Bureau December 3 which requested an overall 15.3% percent decrease in collectible loss costs. (www.cmcrba.com) The Mine Compensation filing would also go into effect April 1, 2011 if approved. Both notices appeared in the December 18, 2010 PA Bulletin.

REGULATORY UPDATE

Conifer Holdings Inc. has filed papers with the Insurance Department to acquire Mid-Continent Insurance Co., a PA-domiciled stock property insurance company.
Baltimore Life is seeking to merge with Philadelphia-United Life Insurance Company with Baltimore Life surviving the merger.

FEDERAL TAX NOTES

Tax Bill: All PA House members except for two defeated Democrats, Kathy Dahlkemper and Paul Kanjorski, voted for final passage of the legislation extending Bush-Era tax cuts, extending Unemployment Compensation, reducing employee payroll taxes by two-percent for one year etc. The vote was roll Call Vote Number 647 on HR 4853 taken December 17 at 12:00 a.m.
The Internal Revenue Service released instructions to help employers implement the new 2011 cut in payroll taxes which reduce the employee Social Security tax withholding rate from 6.2% to 4.2% of wages paid. The cut is only for one year and the employer withholding rate is unchanged. Details: Notice 1036 released December 17 is available at www.irs.gov.
The mileage rate for 2011 is 51 cents per mile and 19 cents per mile for medical or moving purposes. Mileage for volunteer and charitable work is 14 cents per mile.

Tags: Excess and Surplus Lines, Flood Insurance, Healthcare Reform, IRRC, Joan Troutman, LEG REG REVIEW 2010, Legislative Review, MASCPA, NAHU, NFIP, REGULATORY UPDATE, Vince Phillips

LEG REG REVIEW 2010, 32d Issue December 6, 2010

Dec 29

Posted by GPAHUAdmin in Legislative | No Comments

TRANSITION TEAMS BEGIN WORK

The Transition Teams have begun their work in helping the incoming Corbett Administration better understand the agencies, recommend policy and reorganization changes as well as assisting in personnel placement.

Insurance Team Members are:

- David Simon, Jefferson Health Systems

- Darleen Fritz, AEGIS

- Greg Martino, Aetna

- Capitol Blue Cross: Bob Baker

- Fildelio Insurance Co.: Mario Mele

- Gateway Health Plan: Mike Blackwood

- Greenlee: Matt Steck

- Highmark: Mike Warfield and Gary Truitt, recently with Highmark

- Insurance Federation of PA: Sam Marshall

- Jefferson Health Systems: Todd Shamash

- NEPA: Denise Cesare

- PA Chamber of Business & Industry: Sam Denisco

- PA Orthopedic Society: Chip Hummer, MD

- PA State Senate: Hon. Don White, Chair of the Senate Banking & Insurance Committee

- Saul Ewing (law firm): Michael Considine

- UnitedHealthcare of PA: Sue Schick

In addition to these, IA&B’s newsletter said that Rick Russell has also been named to this Team.

Chairs of other Transition Teams are:

Agriculture: Keith Eckel

Banking: Jim Biery, PA Bankers Association

Budgets, Pensions & Revenue: Ron Henry, Esq., Capitol Strategies

Commonwealth (Ofc. Administration and DGS): Co-chairs are Nancy Dering Mock of Nancy Dering, Inc. and Charlie Gerhards

Criminal Justice: Co-chairs are Ed Marsico, Dauphin County DA and John Wetzel, Franklin County Warden

Economic Development: Alan Walker, Bradford Coal Company

Education Committee: Co-chairs are Joel Greenberg of Susquehanna international Group and Mark Nordenberg University of Pittsburgh Chancellor

Energy & Environment: David Kleppinger, McNees Wallace & Nurick (law firm)

Health & Aging: Co-chairs are Bob Cindich of Conemaugh Health System and Todd Shamash of Jefferson Health Systems

Labor & Workforce Development: Mike Acker, Triad Strategies, LLC

Local Government: Co-chairs are Carol Aichele, Chester County Commissioner and Keith Hite, PA State Association of Township Supervisors

Public Safety: Co-chairs are Marko Bourne, Booz Allen Hamilton, Carl Bucholz, Blank Rome LLP, and Wesley Craig, (ret.) US Army

State: Lawrence Tabas, Obermayer, Rebmann Maxwell & Hippel

Transportation/Infrastructure: Co-chairs are Vahan Gueghian, Charter School Management, Inc., Brad Malloy, Michael Baker Corporation and Pete Tartline

Welfare: Co-chairs are Charles Curie and David Simon

Veteran: Co-chairs are Robert DeSousa, PA National Guard and William Lynch, (ret.) PA Air Nat’l Guard

TRANSITION OPENS WEB SITE

www.corbetttransition.org is the web site for Governor-elect Tom Corbett. As of December 6, it contained Corbett’s acceptance speech and a link for those seeking a Corbett appointment in the new administration. The personnel link uses governmentjobs.com but the link does not appear to allow the applicant the opportunity to specify which position he/she is seeking.

RENDELL RESCINDS EXECUTIVE ORDER

Governor Rendell has apparently rescinded his own Executive Order 2010-04 after being faced with possible court action striking it down. This Executive Order would have mandated collective bargaining under one labor unit for personal health workers. The Order had attracted the ire of numerous business and manufacturing interests as well as evoking legal action by Senate Republicans.

PA REGULATORY UPDATE

The Patient Safety Authority is meeting December 14 in Harrisburg. Details: 717/346-0469
PA Mine Subsidence Insurance Board meets in Harrisburg December 9. Details: 717/783-9590
Capitol City Insurance Company, a South Carolina-based stock casualty company, is seeking to merge into PA-domiciled North Pointe Insurance Company.
The PA Bulletin has published proposed Standards whereby the Insurance Department can update its criteria for assessing the financial stability of insurance companies. This updates the 1993 Standards to Define Insurers Deemed to be in Hazardous Financial Condition. Details: Peter Salvatore 717/787-4429.
Independent Regulatory Review Commission (IRRC) is meeting December 16 in Harrisburg to consider:

Reg No. Title

11-240 CE and Training for Insurance Producers11=244

11-245 P/C Actuarial Opinions

11-246 Recognition of 2001 CSO Mortality Table

11-247 Valuation of Life Insurance Policies

GORDNER TAKES SENATE LEADERSHIP POST

Senator John Gordner (R-Columbia) has been selected for a Senate Leadership post. He will be 2011-12 Majority Caucus Administrator succeeding Sen. Pat Browne R-Lehigh.

2011 SURVEY: PHILLIPS ASSOCIATES would like to know what Continuing Education for 2011 would interest you most. Please email jtrout2792@aol.com with your ideas.

Tags: 2010, Excess and Surplus Lines, federal, GPAHU, Healthcare Reform, LEG REG REVIEW 2010, Legislative Review, Malpractice, MASCPA, May 3 2010, NAHU, NFIP, PA budget, REGULATORY UPDATE, Vince Phillips

LEG REG REVIEW 2010, 13th Issue May 17

May 17

Posted by GPAHUAdmin in Legislative | No Comments

TUESDAY IS PRIMARY ELECTION DAY

May 18 is show-time for hundreds of PA state legislative candidates and the state contests for Congress, Governor and Lt. Governor, partially overshadowed by the Senate Democratic contest between incumbent Arlen Specter and challenger Rep. Joe Sestak. An unsettled mood seems to have gripped the electorate and this does not bode well for some incumbents such as Specter as shown by polls. Despite polls, the only poll that really counts is the one you decide with your vote on Election Day. Please exercise your right to vote!

WHILE THEY’RE ON BREAK, CATCH UP ON NEWS…

The General Assembly is on break because of the Primary election but there are a number of legislative items of interest to help bring you up to speed when they return.

Risk pool legislation went through the Senate 49-1. Senate Bill 507 (Folmer-R-Lebanon) was amended to meet new federal requirements of the Patient Protection and Affordable Care Act such as having a six-month no insurance period prior to getting into the Risk Pool. This is a program for the medically uninsurable that will last until 2014. Although Pennsylvania is opting to have a risk pool, 18 states including neighbor Delaware have chosen to let the federal government operate a risk pool instead of the state doing it since, if the program exceeds premium revenues, the Federal Government would be on the hook rather than the state. SB 507 may have competition from a House bill being drafted now. Of interest to agents is the provision that referral fees could be paid to non-licensed persons in addition to licensed insurance agents who place people in the Risk Pool
PEO hearing was held by the House Labor Relations Committee on House Bill 2450 (Brennan-D-Lehigh). This legislation would recognize Professional Employer Organizations as a pooling of small businesses’ employees who would be covered by master contract for health benefits and Workers’ Compensation. Employees remain under direction and control of the small business but legally would be employed by the PEO. Pennsylvania Association of Health Underwriters (PAHU) submitted a statement criticizing PEOs as vulnerable to Workers’ Compensation fraud and as being destructive to the employer-broker relationships at the local level.
HB 2392 (Shapiro-D-Montgomery) extends mini-COBRA insurance coverage to 15 months instead of the current nine months. This would enable addition Federal ARRA 65% subsidy money to flow to those former employees. HB 2392 also requires reverting to nine months for mini-COBRA when the Federal subsidy ends. This has passed the House and sits in the Senate Banking & Insurance Committee.
The House Insurance Committee convened its hearing on the Community Health Reinvestment Agreement (CHRA) legislation (HB 2455-Eachus-D-luzerne) pointing to differences between the Blues versus the House Majority Leader and Insurance Commissioner Ario. HB 2455 would extend the CHRA and dedicate an increased part of the Blues’ reserves to fund the adultBasic program until 2014. The Blues maintained that they had already contributed significantly and asked lawmakers to appreciate the tightened economic conditions facing the Blues now.

A cell phone and texting while driving ban (HB 2070 sponsored by Rep. Joe Markosek-D-Westmoreland) passed the House, was amended in the Senate Transportation Committee and awaits full Senate consideration.
Senate Bill 237 (Corman-R-Centre) was signed into law as Act 14 of 2010. The law does a number of things including:

- Updating Pennsylvania’s Surplus lines Law

- Setting suitability standards for annuities

- Protecting insurers’ confidential actuarial analyses submitted to the Insurance Department from public scrutiny

- CHIP is extended through 2013

Also signed into law by the Governor was House Bill 526 (DeLuca-D-Allegheny) as Act 17. This ensures a refund of unearned credit insurance premium to consumers who pay off loans early. This was a priority of the PA Financial Services Association.

FEDERAL IMPLEMENTATION ACCELERATED

In addition to specific PA legislation required by the new federal law (Risk Pool, Insurance Ombudsman, etc.) the Federal Government has moved ahead with a number of implementations ahead of the statutory deadlines.

Some of these include:

- Ban on company rescissions from HHS (now accepted by companies; original deadline Sept. 23))

- FAQs on the new small business health insurance tax credits from the IRS

- Descriptive rules on the age 26 dependent provision of the new law by HHS, IRS and the US Department of Labor (May 10; original deadline Sept. 23 with Blues and other major carriers agreeing to keep graduating young adults as dependents June 1 rather than canceling them out and reinstating them in September)

- Early compliance by companies for the September requirement that there be no pre-existing conditions for children (March 29)

- Early retiree insurance program offers claim reimbursements to companies that will offer medical insurance for retirees aged 55-64 (May 4)

- Closing the Medicare Donut Hole: HHS says that the first $250 checks will go out to seniors June 15.

- Medical Loss Ratio (MLR) methodology by June 1 instead of end of year

MEDICAL LOSS RATIO DECISION ACCELERATED

One important new requirement is that insurers must meet a Medical Loss Ratio (MLR). This MLR methodology (what constitutes a claim versus non-claim insurer overhead) was originally set for December 31, 2010. Now, HHS has said that NAIC must submit its findings by June 1. The MLR for large groups is 85% and 80% in the small group market. If carriers violate the MLR they would have to issue refunds for the difference to customers. On May 14, the NAIC issued a press release stating that a preliminary letter had been sent to HHS regarding its efforts thus far. Also noted in the press release was an NAIC letter to HHS regarding HHS’ new authority to review health insurer premium increases as a major expansion of federal authority into the traditionally state-regulated area of rate review. (www.naic.org)

ARE YOU and your business clients CONFUSED ABOUT THE NEW FEDERAL HEALTH REFORM LAW? Vince Phillips has made dozens of presentations to business and insurance groups on the new law and its implementation timetable as it relates to Pennsylvania. If interested in such a program please contact Vince Phillips via Joan Troutman at 717/732-7255 jtrout2792@aol.com.

Tags: 13th Issue May 17, Cell Phone Ban, CHRA, Election Day, Extending Mini COBRA, Healthcare Reform, Insurance, LEG REG REVIEW 2010, Legislative, Legislative Review, MLR, PEO, Risk Pool

Posts Tagged Healthcare Reform

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GPAHU 13th Annual Golf Outing

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