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LEG REG REVIEW 2012, 22D Issue July 16, 2012

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LEG REG REVIEW 2012, 22D Issue July 16, 2012 LEG REG REVIEW 2012, 22d Issue July 16, 2012 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 [email protected]. Please email [email protected] supplying both your name and e-mail address if you wish to be removed from this list. GOVERNOR MOVES TO ELIMINATE GOV’T ENTITIES Governor Corbett issued Executive Order No. 2012-09 creating the Sunset Task Force. This has responsibility for examining the numerous boards, commissions operating under the Governor’s authority. It does not include independent boards or commissions established by the General Assembly or through statute (for example the Civil Service Commission, Milk Marketing Board, Turnpike Commission, etc.) Its mission is to determine value or lack thereof and recommend terminations of or limitations to the boards, commissions, etc. Members will be appointed by the Governor and the Sunset Task Force sunsets May 13, 2013. BILLS SIGNED INTO LAW SINCE JULY 1 (of interest to Business and insurance communities) Act 86 (House Bill 2438) reorganizes the Banking Department to include Securities oversight Act 88 (House Bill 3) provides for public-private partnerships in transportation funding Act 90 (House Bill 48) sets up regulatory framework for prosthetics professionals and requires that they carry at least one million dollars of professional liability insurance per occurrence or claims made Act 102 (House Bill 1055) codifies how Professional Employer Organizations (PEOs) will work and how they will be regulated re Workers Compensation in PA Act 107 (House Bill 1539) Workforce Development Act, Keystone Works Program Act 110 (House Bill 1908) establishes reforms and increases consumer disclosures by towing operations Act 112 (House Bill 2135) allows non-licensed retail clerks to sell property insurance to retail customers for portable electronic items Act 121 (Senate Bill 8) establishes Pennsylvania eHealth Partnership Authority and the Pennsylvania eHealth Partnership Fund; a state data base of medical test information so as to reduce unnecessary preventive and duplicative medicine. It provides limited civil immunity for health care providers relying on others’ test results under certain circumstances. Act 125 (House Bill 351) amends the Judicial Code providing for Good Samaritan civil immunity for use of automated external defibrillator and for nonmedical Good Samaritan civil immunity. Act 146 (Senate Bill 1464) gives the Insurance Department added authority to better regulate international insurance entities doing business in PA HHS PLANS EXCHANGE FORUMS HHS is convening four Forums across the country to discuss Exchange implementation for states and stakeholders to learn about the next steps in implementation of the Patient Protection Affordable Care Act (PPACA). They are scheduled in Chicago August 2, Denver August 10, and Atlanta August 15. In addition, there is one closer to Pennsylvania in Washington, DC July 31 at the HHS Hubert Humphrey Building. Each session runs from 9:00 a.m. to 4:30 p.m. Pre-registration is required and inquiries go to [email protected] . Media contact is [email protected]. NOTE: If you are going to participate in one of these Forums, please notify the PA Association of Health Underwriters [email protected] with a CC to [email protected] . 1 POLITICS A special election will NOT be held for the PA Senate 37th seat vacated by John Pippy (R-Allegheny) who resigned his Senate seat June 30 to become the new CEO of the Pennsylvania Coal Alliance. The contest will be decided in November. In the general election, there has been a switch. The Democratic nominee is now Rep. Matt Smith (D-Allegheny). He faces Republican D. Raja. Given the July 11, 2012 U.S. House of Representatives 244-185 vote to repeal PPACA, five Democrats joined all of the Republicans for repeal. None were from PA including the two who had initially voted against adoption, Tim Holden and Jason Altmire. A third Democrat, Mark Critz from Johnstown, may see some political fallout since in 2010 he campaigned as an anti-Obama health care law Democrat. His Republican opponent Keith Rothfus has already made the change of mind a campaign issue. Critz’ decision not to attend the Democratic National Convention already had raised some eyebrows. According to PoliticsPA.com, Critz explained his vote to keep PPACA in place because he “won’t allow insurance companies to charge women more than men.” LAW NOTE: House Bill 2134 (Act 51 of 2012) takes effect July 21. It deals with Risk Based Capital and expands the PA Insurance Department’s authority to intervene earlier if there are negative signs pointing to possible solvency issues with health insurance carriers. LINK TO NEW FLOOD INSURANCE REFORMS Major reforms will occur in the National Flood Insurance Program (NFIP) with passage by Congress of a Conference Report for HR 4348 signed into law by President Obama on July 6, 2012. Although HR 4348 is the major transportation funding bill, it was amended to include many of the flood insurance reforms which have floated around Congress for years as well as extending the life of the NFIP to 2017. Working title of the law is the Biggert-Waters Flood Insurance Reform Act of 2012. Technically, it is Public Law 112-141, Conference Report to accompany HR 4348, Division F, Title II. In the law’s many provisions, there are several that need to be highlighted: The law establishes a formula for NFIP and wind insurers to pay where property damage cannot be attributed to wind or water, settling a long-standing dispute and avoiding further lawsuits (Section 100253). Section 100233 mandates studies on enriching NFIP benefits to include living and business interruption expenses. Studies are mandated on the affordability and availability of property insurance for natural disasters in addition to floods that might warrant a broader Federal insurance program. (Section 10027) Rate subsidies will disappear for certain pre-FIRM grandfathered properties that suffer repetitive loss. These would include rate hikes of 25% per year for four years to reach the full actuarial cost. (Section 100205) Although the Library of Congress (www.thomas.gov) does a complete job in presenting the information, there may be some information overkill with this piece of legislation. Nonetheless, please use this link in beginning your research or use the link mentioned above if you lose your bearings. http://thomas.loc.gov/cgi-bin/query/D?c112:5:./temp/~c112OeJBy9:: NOTE: PHILLIPS ASSOCIATES is offering CE on the new law. If interested in an in-agency presentation, please contact us at 717/732-7255, [email protected] . HOUSE INSURANCE LIABILITY HEARING CANCELED On July 17, the House Insurance Committee will not convene a Harrisburg hearing on House Bill 2299 (Cutler- R-Lancaster) on July 17. This bill amends the Medical Care and Reduction of Error (MCARE) law to provide qualified medical malpractice immunity to a health care provider arising out of the provision of emergency care unless negligence or E&O is expressly proved. 2.
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