Posts Tagged LEG REG REVIEW 2010

LEG REG REVIEW 2011, 5th Issue January 31, 2011

Feb 2

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.

CE REGULATION PUBLISHED

The January 29 edition of the PA Bulletin shows the text of the long-awaited Insurance Department Rule on insurance producer Continuing Education. This includes provisions affecting those producers who write Flood Insurance to meet the NFIP training requirements and a separate requirement for those writing long-term care insurance. For those in the long-term care market, please note:

- If you already sell, solicit or negotiate contracts of LTC insurance and have not met the training requirement of eight hours specific to LTC insurance, you have until April 1, 2012 to do so.

- Those who completed the training requirement previously (before the Department Rule was approved) shall be considered to be in compliance if they document their training per their transcript from www.sircon.com . Insurers must check before appointing producers to sell LTC products.

- The training required may not include training that is product-specific to any insurer or company or include any sales or marketing information, materials or training, other than those required by State and Federal law.

- The ongoing training requirement shall be at least 4 hours on LTC insurance in every subsequent 24- month licensing cycle.

- One item to note is that the one-hour mandated CE for those involved in qualified LTC Partnership plans may be included in the eight-hour training requirement. Please note the link below for the full text of the new Rule which is effective April 1, 2011.

http://www.pabulletin.com/secure/data/vol41/41-5/136.html

OTHER INSURANCE REGULATIONS PUBLISHED

A number of other insurance regulations are also posted in the January 29 PA Bulletin. These include:

• Life valuation reserves standards; life actuarial opinion re regulatory adequacy

• Life mortality tables

• P/C actuarial opinion standards to address privacy concerns

SENATE DEMOCRATS FINISH LEADERSHIP LINEUP

Senate Democrats have rounded out their leadership selections so that the leadership team is Jay Costa (Allegheny) as Democratic Leader; Vincent Hughes (Phila.) as Appropriations Chair; Anthony Williams (Phila.) as Whip; Rich Kasunic (Fayette) as Caucus Chair; Lisa Boscola (Northampton) as Policy Committee Chair; and Wayne Fontana (Allegheny) as Caucus Administrator.

POLITICAL UPDATE

• February 1 is the date of the special Philadelphia election to fill the term of former Rep. Robert Donatucci. With an overwhelming Democratic registration, Democratic candidate and widow Maria Patelmo Donatucci is expected to win over Republican Lewis Harris.

• In Berks County the parties have chosen their nominees for the Senate seat opened up by the death of former Senator Michael O’Pake (D). Republican nominee is Berks County Register of Wills Larry Medaglia. He will face former Berks County Commissioner Democrat Judy Schwank.

CORBETT ADMINISTRATION SEEKS HHS FUNDING FOR adultBasic

In his first policy initiative, Acting Insurance Commissioner Michael Consedine proposed to the U.S. Department of Health & Human Services (HHS) that some of the Federal Risk Pool monies not used by other states be re-allocated to assist those enrolled in Pennsylvania’s adultBasic program for the adult uninsured population and that PA’s adultBasic enrollees would not have to meet federal Risk Pool requirements for six months without insurance. PA has had some success in enrolling people in the PA Fair Care risk pool for those who could medically not otherwise get insurance while the national numbers are below capacity from some of the other states. These were established via the Patient Protection Affordable Care Act with $5 billion in funding for the Risk Pools before 2014. The Pennsylvania move was necessitated by adultBasic’s running out of money in February 2011. Originally funded by Tobacco Settlement money in the Ridge Administration, adultBasic moved under Rendell to be almost wholly dependent on the Community Reinvestment Agreement (CRA) using Blues’ reserves. The CRA expired December 31, 2010 without a replacement source of funding named.

NFIP SETS TRAINING OPPORTUNITIES

The National Flood Insurance Program (NFIP) announced that it plans to conduct two Flood Insurance training programs designed to enable PA insurance producers to meet the NFIP’s training requirements. Registration is free but attendees must pre-register. Scheduled are sessions in Erie February 8 and Lancaster February 16 from 9:00 a.m. to 12:00 noon. Details: 1(800) 427-4661 nfiptraininginfo@h2opartnersusa.com or www.nfipiservice.com/training.

DATE SET FOR READING I DAY

April 14, 2011 is the date for the 2011 Reading I Day at the Crowne Plaza in Wyomissing. Keynote speaker is Scott Addis of the Addis Group who will speak on “The Great Escape: Essential Strategies to win the Battle Against Commoditization”. Also speaking is lobbyist Vince Phillips on “Legislation You Need to Know About”. This is the 50th anniversary of the Reading I Day. Details: Patricia Eggles 610/374-4040.

SENATE COMMITTEE ACTS ON ABORTION PPACA BAN

On January 25, the Senate Banking & Insurance Committee voted to move SB 3 (D. White-R-Indiana) to specify that any Exchanges operating in Pennsylvania not pay for abortions or post-abortion complications. No one is prohibited from purchasing non-Exchange insurance which does cover abortions. The vote was not unanimous however. The two dissenters were Philadelphia Democrats Larry Farnese and Anthony Williams. Minority Chair Mike Stack, also from Phila., voted with the majority to move the bill.

REPRINT FROM NAHU NEWS RESOURCE ON PPACA COST, THE DEFICIT and GRANDFATHERING

Foster: Healthcare Law Will Not Reduce Costs Or Allow Americans To Keep Plans.

The AP (1/27, Alonso-Zaldivar) reports, “Two of the central promises of President Barack Obama’s healthcare overhaul law are unlikely to be fulfilled, Medicare’s independent economic expert told Congress on Wednesday.” The law “probably won’t hold costs down, and it won’t let everybody keep their current health insurance if they like it, Chief Actuary Richard Foster told the House Budget Committee.” The AP adds, “The White House responded to Foster’s testimony in a blog post by Stephanie Cutter, a top aide helping to guide the political strategy on healthcare,” saying, “Once again, we disagree. … History shows that it is possible to implement measures that will save money for Medicare and the federal government.” The Hill (1/27, Pecquet) reports in its Healthwatch blog, “In addition to defending the administration’s commitment to reducing Medicare spending in the law, Cutter outlined several provisions of the law that aim to lower healthcare costs. These include state insurance exchanges, a new Medicare innovation center and incentives for healthcare providers to coordinate care.” She wrote, “These policies will bring down healthcare costs…but they are undervalued by the Actuary.

Tags: 2010, 5th Issue, CE REGULATION PUBLISHED, Insurance, LEG REG REVIEW 2010, REGULATORY UPDATE, 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

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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

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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, 31st Issue November 29, 2010

Nov 29

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A NOTE FROM VINCE PHILLIPS

As we begin the harried and hurried time between Thanksgiving and the Christmas holiday, it is always important to me to take stock of things, to take a deep breath and reflect on some things that are truly more important than today’s newspaper circular or advertised special. I like to look at this time as seeing the unadvertised specials. To me, that means you where I appreciate and thank the individuals and businesses who have felt my firm to be of value to them. Whether it is because you have taken a class from PHILLIPS ASSOCIATES, had me lobby for you, or had me explain the Patient Protection Affordable Care Act, or are simply a LEG REG REVIEW reader, I count you as being inside my circle as part of my extended family. This means that I am thankful for our relationship and that I appreciate the trust and faith you place with me and my firm.

Sincerely, Vince

HHS ISSUES MLR RULES

On November 22, the Department of Health & Human Services (HHS) issued its rules regarding the Medical Loss Ratio (MLR) requirement contained within the Patient Protection Affordable Care Act. A section of the Rule permits states to file a request for a waiver from the MLR with regard to agent compensation.

The following day, the Pennsylvania Association of Health Underwriters (PAHU) formally asked that the PA Insurance Department request a waiver of agent commission from the MLR rule. The letter stressed that agents spend most of their time servicing clients’ needs including claims and that carriers faced with the MLR will cut first in discretionary areas such as agent commissions. Agents, the letter said, will still perform all the value-added functions such as helping consumers get claims paid, still have agency overhead, yet receive less for it. The request also quoted former Commissioner Joel Ario who testified to the PA House Insurance Committee May 27 that more than one-half of the members of America’s Health Insurance Plans would not be around in ten years because they could not meet the MLR.

Despite issuing the Rule, HHS says that it wants public comment on the Rule which will be published in the Federal Register. Please use the link below for reading the Rule’s text and for filing electronic or print comments. More information about the Medical Loss Ratio is available at http://www.healthcare.gov/news/factsheets/medical_loss_ratio.html. The regulation and other technical information are available at http://www.hhs.gov/ociio/regulations/index.html.

NAIC FORMS AGENT TASK FORCE

The National Association of Insurance Commissioners (NAIC) announced November 24 that it is establishing a new task force to address adverse impacts of the Patient Protection Affordable Care Act on insurance agents and brokers. According to NAIC Vice Chair and Florida Commissioner Kevin McCarty, a rationale for the task force is that “there is a very real possibility that the role of health insurance agents will be impacted in a negative way.”

EEOC ISSUES FINAL GENETIC REGS

According to November 19 Employee Benefit News (www.e.benefitnews.com), the Equal Employment opportunity Commission (EEOC) issued regulations implementing Title II of the Genetic Information Nondiscrimination Act of 2008 (GINA). These rules are effective January 10, 2011. Among the provisions are prohibitions on employers from requesting genetic information except as required by the Family Medical Leave Act unless it is relative to a wellness program and approved by the employee. It also prohibits any use of genetic information in employment decisions including hiring, firing, compensation, and terms and conditions of employment.

GOVERNOR RENDELL SIGNS SOME BILLS INTO LAW…

House Bill 2497 (Act 120) begins the process of pension reform in Pennsylvania and begins to nibble at an expected $5 billion unfunded liability. Also in the bill is a provision establishing an independent fiscal office within the legislature similar to the CBO at the federal level.
House Bill 2547 (Act 122) establishes relief from duplicative Department of Banking licensing requirements for companies providing financing for the purchase of manufactured and mobile homes.

…AND VETOES ANOTHER, WHILE…

The Governor vetoed House Bill 1231 which would have extended Workers’ Compensation coverage to classify cancer as a covered disease if contracted by firefighters. There are provisions that exclude a firefighter if he/she is found to have been a smoker for two years and the cancer is tied to smoking as a cause. According to Gov. Rendell, this “establishes a presumption that any cancer diagnosis will be the result of firefighting activities…(and) total cost (to municipalities) is unknown.”

…OTHERS WILL SIMPLY WAIT UNTIL NEXT YEAR

A delay in the new sprinkler mandate law for new construction will not take place because the PA House did not concur with the Senate in pushing House Bill 1196 to the Governor for his signature. The legislation would have delayed the implementation of the new requirement by one year.
House Bill 664 is in the same position. This bill addresses Workers’ Compensation for sole proprietors and extends that coverage to partners and LLC officers. Amended out of the bill in the Senate was language specifically addressing loggers as covered by the sole proprietor Workers’ Compensation language. One provision to note is defining ‘covered employee’ as individuals who have completed Community Emergency Response Team training and are dispatched to assist the first responders.

GENERAL ASSEMBLY and ADMINISTRATION UPDATES

Representative Bob Donatucci (D-Phila.) passed away, leaving a vacancy in the 185^th legislative district. A special election will be held February 1, 2011.
Long-time Governor’s Policy Director Donna Cooper has secured a position with the Center for American Progress in Washington, DC. She was one of the few individuals who had been an integral part of the Rendell Administration since its start.

PA LEADS IN RISK POOL ENROLLMENT

According to the Insurance Department, Pennsylvania leads the Nation in enrollments in to the new high risk pools mandated by the Patient Protection Affordable Care Act. With more than 1,650 people enrolled out of a national number of under 10,000, PA’s success may be attributed in part to the fact that almost 40 other states already had some sort of risk pool mechanism before PPACA.

Tags: 2010, 31st Issue November 29, ADMINISTRATION UPDATES, AGENT TASK FORCE, BILLS, EEOC, FINAL GENETIC REGS, GENERAL ASSEMBLY, GOVERNOR RENDELL SIGNS, HHS, LAW, LEG REG REVIEW 2010, MLR RULES, NAIC, PA LEADS IN RISK POOL ENROLLMENT, VETOES, Vince Phillips

LEG REG REVIEW 2010, 30th Issue November 22, 2010

Nov 22

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LEADERSHIP CHOICES (ALMOST) COMPLETE

The other three caucuses finalized their leadership selections for the 2011-2012 legislative session of the PA General Assembly. In the most recent issue of Leg Reg Review, the House Republican team was announced. Following are the other three caucuses with some commentary.

Senate Republicans:

[table "3" not found /]

The major change is the movement upward of Sen. Browne to be new Majority Whip. He replaces Sen. Jane Orie (R-Allegheny) who resigned that leadership post because of legal issues. Two positions in Senate Republican leadership will be selected later. These are Senate Republican Caucus Administrator which was filled by Sen. Browne and Majority Policy Chair now held by Sen. Ted Erickson (R-Chester/Delaware)

Senate Democrats:

[table "4" not found /]

Despite the shift of power westward, Philadelphia Democrats still wield considerable power within the caucus as evidenced by Appropriations staying east. Unless he decides to switch committees, unsuccessful Minority Leader challenger Mike Stack (D-Phila.) remains Minority Chair of the Senate Banking & Insurance Committee…decisions on committee chairs take place next year.

House Democrats:

[table "5" not found /]

As with House Republicans, the power shifted westward since former Majority Leader Todd Eachus (D-Luzerne) was retired, former Caucus Chair was Mark Cohen (D-Phila.), and in the biggest swing, the Appropriations Committee Chairman was Dwight Evans (D-Phila.) In January, Democrats and Republicans will choose committee chairs. The plum to watch is the House Finance Committee since former Finance Chair Dave Levdansky (D-Allegheny) was defeated. This might be something Rep. Evans seeks since the Finance Committee originates tax legislation as a companion in the appropriations/budgeting process.

IRRC CHANGES DECEMBER MEETINGS

The Independent Regulatory Review Commission (IRRC) has changed its December schedule to cancel two meetings for December 2 and 4 and to compress a significant agenda into the one set for December 16, several items of which involve the insurance industry.

· 2862 Insurance Department #11-245: Property and Casualty Actuarial Opinion (Deemed Approved)

· 2866 Insurance Department #11-244: Actuarial Opinion and Memorandum (Deemed Approved)

· 2867 Insurance Department #11-246: Recognition of the 2001 CSO Mortality Table and the 2001 CSO Preferred Class Structure Mortality Table for Use in Determining Minimum Reserve Liabilities (Deemed Approved)

· 2868 Insurance Department #11-247: Valuation of Life Insurance Policies (Deemed Approved)

· 2882 Department of Revenue #11-247: Amendments to Pennsylvania Gaming Cash Flow Management (Final-Omit)

· 2846 Department of Labor and Industry #12-74: Unemployment Compensation; Employee Provisions

· 2847 Department of Labor and Industry #12-78: Unemployment Compensation; Administration

·NOTE: 2812 Insurance Department #11-240: Education and Training for Applicants and Insurance Producers

FEDERAL DEFICIT PANEL MAY TARGET INSURANCE (Courtesy of NAIFA)

According to some, the recently released National Commission on Fiscal Responsibility and Reform’s draft proposal threatens preferential tax treatment for retirement programs and insurance products. The draft details domestic spending cuts and tax and entitlement reforms, including the “zero plan,” which would eliminate $1.1 trillion of so-called tax expenditures. This includes tax incentives for company retirement savings and healthcare programs and tax-deferred buildup of cash value within life insurance policies. NAIFA Senior Vice President for Government Relations Michael Kerley says, “The likelihood is that they would have a fairly significant negative impact on life insurance, annuities and employer-sponsored health benefits.” If you want to read their draft go to http://www.fiscalcommission.gov/.

NAHU generally appears to take the position that the National Commission on Fiscal Responsibility report may be dead on arrival as far as acceptance by the Congress although a formal statement was unavailable at time of this report.

Tags: 2010, 30th Issue November 22, FEDERAL DEFICIT PANEL MAY TARGET INSURANCE, House Democrats, IRRC, IRRC CHANGES DECEMBER MEETINGS, LEG REG REVIEW 2010, NAHU, NAIFA, National Commission on Fiscal Responsibility, Senate Democrats, Senate Republicans

LEG REG REVIEW 2010, 29th Issue November 15, 2010

Nov 15

Posted by GPAHUAdmin in Legislative | No Comments

HOUSE TO COMPLETE LEGISLATIVE WORK

After an about face decision by House leadership, the PA House is convening to complete action on several bills before finally adjourning. Since the Senate is not coming back, the House will have only a stripped down list of possibilities. The one commanding the most attention is a House pension reform bill (HB 2497) that the Senate amended and sent back to the House for concurrence. This may run onto a rocky road since some Democrats including the Governor believe that a Senate amendment to HB 2497 creating an independent fiscal office is unconstitutional. Republicans on the other hand might be tempted to force a hold until the New Year, believing that they could craft a stronger reform bill as the majority party than they were able to with a Democratic majority now. Another possible action is concurrence with a House bill that passed the Senate (HB 1196) delaying implementation of the new sprinkler mandate bill for a year. Builders had unsuccessfully sought a court stay but were rebuffed.

Insurance bills to watch:

House Bill 1231 extends Workers’ Compensation coverage to classify cancer as a covered disease if contracted by firefighters. There are provisions that exclude a firefighter if he/she is found to have been a smoker for two years and the cancer is tied to smoking as a cause. It passed the House, passed the Senate and now is before the House Rules Committee
House Bill 664 is in the same position, needing only House concurrence in Senate amendments in order to go to the Governor for his signature. This bill addresses Workers’ Compensation for sole proprietors and extends that coverage to partners and LLC officers. Amended out of the bill was language specifically addressing loggers as covered by the sole proprietor Workers’ Compensation language. One provision to note is defining ‘covered employee’ as individuals who have completed Community Emergency Response Team training and are dispatched to assist the first responders.

HOUSE GOP SELECTS LEADERSHIP; DEMS THIS WEEK

House Republicans selected leadership for the 2011-12 legislative session. They are:

- Speaker nominee (to be voted on by the House formally next year) Sam Smith (Jefferson)

- Majority Leader Mike Turzai (Allegheny)

- Whip Stan Saylor (York)

- Policy Committee Chair Dave Reed (R-Indiana)

One change in caucus leadership was in the Secretary post that was held by Rep. Jerry Stern (R-Blair) which will now be assumed by Rep. Mike Vereb from Montgomery County.

House Democrats will see significant changes and possibly a real transfer of power from eastern to western Pennsylvania since their Speaker of the House Keith McCall (Carbon) retired and Majority leader Todd Eachus (Luzerne) was defeated.

Rep. Frank Dermody (Allegheny) may be the new Minority Leader. One contest to watch is for the position of Appropriations Committee Chair where incumbent Dwight Evans (Phila.) is being challenged by Westmoreland County’s Joe Markosek. Caucus Secretary Mark Cohen (Phila.) is being challenged by Rep. Dan Frankel (Allegheny).

SENATE TO ALSO SELECT LEADERS

Senate GOP leadership remains the same with President Pro Tempore Joe Scarnati and Majority Leader Dominic Pileggi (Delaware) continuing. On the Democratic side, there is a contest between two powerful Senators, Jay Costa (Allegheny) and Michael Stack (Phila.), for the position of Minority Leader being vacated by Bob Mellow (Lackawanna) who retired. If Costa wins, that starts off a contest for Democratic Chair of the Senate Appropriations Committee which he now heads. If Stack wins, there will be a vacancy as Democratic Chair of the Banking & Insurance Committee. Watch Sen. Vincent Hughes (D-Phila.) as a contender.

CE REGULATION GOES TO IRRC

The long-awaited Insurance Department Continuing Education regulation goes to the Independent Regulatory Review Commission (IRRC) for final approval and a final opportunity for comment/approval from the House Insurance Committee and the Senate Banking & Insurance Committee. As expected, the Department will require training for insurance producers selling long-term care insurance, LTC Partnership policies, and reminds producers selling flood insurance that they must comply with National Flood Insurance Program (NFIP) training requirements.

HEALTH LAW IMPLEMENTATION COMMITTEE TO MEET

The Rendell Administration’s Health Care Reform Implementation Advisory Committee meets November 17 in Harrisburg. This entity was established by Executive Order to aid the Governor’s Office of Health Care Reform to implement provisions of the Patient Protection Affordable Care Act (PPACA). Prior to the formal meeting, PAHU will address a subcommittee on the need to utilize insurance producers to market the new Exchanges mandated by PPACA. PAHU will state that the law (Act 147) requires producers to be used. Given the makeup of the Advisory Committee, agents may receive only a tepid reception. It is unclear how much currency the Rendell Advisory Committee’s report will have with the incoming Corbett Administration.

In a related matter, the US Department of Health & Human Services approved a $2 million grant to the PA Insurance Department to prepare for the Exchange component of the PPACA. A second use of the grant is for consumer education and to assist consumers with appeals. Although not mentioning it by name, this money may be possibly designed to achieve compliance with the insurance ombudsman requirement of PPACA.

REGULATORY UPDATE

The Independent Regulatory Review Commission (IRRC) approved Insurance regulation 11-243 Standards to define Insurers Deemed to be in Hazardous Financial Condition
IRRC disapproved regulations relative to funeral directors
A Insurance Department press release reminds drivers to beware of deer particularly between 7:00 p.m. and midnight. It also reminds that a deer hitting the car will not result in auto insurance rate impact..
PA Compensation Rating Bureau (www.pcrb.com) announced a series of Manual changes relating to bus operators and temporary staffing. These were approved by the Insurance Department and are effective December 1.

CORBETT ANNOUNCES TRANSITION HEADS

Pennsylvania Gov.-elect Tom Corbett announced the leaders of his transition team last Wednesday. Co-chairs are Christine Toretti, chairman and CEO of S.W. Jack Drilling Co. in Indiana, Pa, Jack Barbour, CEO of Pittsburgh-based Buchanan Ingersoll & Rooney and Bill Sasso, chairman of the Phila. law firm Stradley Ronon.

Tags: HB 1196, House Bill 1231, House Bill 664, IRRC, leg reg, LEG REG REVIEW 2010, Legislative Review

Posts Tagged LEG REG REVIEW 2010

LEG REG REVIEW 2011, 5th Issue January 31, 2011

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

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

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

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

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

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

LEG REG REVIEW 2010, 31st Issue November 29, 2010

LEG REG REVIEW 2010, 30th Issue November 22, 2010

LEG REG REVIEW 2010, 29th Issue November 15, 2010

GPAHU 13th Annual Golf Outing

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