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LEG REG REVIEW 2013, 16Th Issue May 27, 2013

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LEG REG REVIEW 2013, 16Th Issue May 27, 2013 LEG REG REVIEW 2013, 16th Issue May 27, 2013 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 717/232-7005 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. DEMOCRATS FILL EMPTY SEATS Special elections in York and Alleghany Counties May 21 have restored the full complement of 203 House members. In both cases, Democrats won seats that were previously held by Democrats -- now Auditor General Eugene DePasquale (York) and now Senator Matt Smith. Newly elected are Allegheny County’s Dan Miller from the 45th district with 57.7% of the vote and York’s Kevin Schreiber with 53.22% of the vote. The House of Representatives political ratio is now 111 Republicans and 92 Democrats. CORBETT SIGNS COMMUNITY HEALTH BILL INTO LAW On May 24, Governor Tom Corbett signed Senate Bill 5 (Erickson-R-Chester) into law as Act 10 of 2013. It establishes a Community-Based Health Care Program within the Department of Health to provide grants to community -based health care clinics to expand and improve their health services and to reduce unnecessary (and expensive non-compensated hospital care) emergency room visits. This has been a multi-session effort by Senator Erickson beginning during the term of former Governor Rendell. WOLF CONFIRMED AS HEALTH SECRETARY Corbett nominee Michael Wolf was confirmed without dissent by the PA Senate as new Secretary of the Department of Health. Awaiting Senate action is the nomination of former state lawmaker Bev Makereth as Secretary of the Department of Public Welfare. POLITICAL NEWS: WHAT REDISTRICTING MEANS (from Politics PA) Now that the PA Supreme Court has ratified new House and Senate district lines, the 2014 campaign may already beginning to take shape. Open seats involve some geographic moves: - House district 5 moves from Erie/Crawford to Berks County - House district 22 moves from Allegheny County to Allentown - House district 74 moves from Clearfield to Chester County - House district 115 moves from Lackawanna county to Monroe County - House district 169 moves from Philadelphia to southern York County - Senate district 40 moves from Allegheny County to Monroe County Reshaped districts also put various incumbents together in 2014 including: - Senate district 38 (Allegheny) with incumbents Jim Ferlo (D) now in the same district as Republican Randy Vulakovich - House district 3 (Erie) where incumbent Democrat Ryan Bizzaro could face Republican Greg Lucas - House district 36 (Allegheny) where Democratic incumbents Harry Readshaw and Erin Molchany could square off - House district 71,72,73 (Cambria) where four incumbents could potentially compete: Republican Tommy Sankey and Democrats Bryan Barbin, Gary Haluska, and Frank Burns - House district 112 (Lackawanna) including Democrats Kevin Haggerty and Frank Farina - House district 174 (Philadelphia) where again two incumbent Democrats could run against each other - - Ed Neilson and John Sabatina 1 REGULATORY UPDATES MCARE has a new address: 1010 North 7th St., Harrisburg, PA 17102 717/783-3770. Independent Regulatory Review Commission (IRRC) approved an Insurance Department Rule regarding requirements for qualified and certified reinsurers (Regulation 11-249 #2970). The final Rule was published in the May 25, 2013 PA Bulletin (www.pabulletin.com) bv and will be effective June 24, 2013. The Insurance Department has re-opened the public comment period 45 days from May 25 for a proposed acquisition of OneBeacon and Potomac Insurance Company by Trebuchet US Holdings, Inc. Details: Steven Yerger [email protected]. The Department of Public Welfare (DPW) published the Federal Poverty Income Guidelines for 2013 in the May 25 PA Bulletin. Selected annual figures follow. Persons 100% 133% 200% 250% 1 11,490 15,282 22,980 28,725 2 15,510 20,629 31,020 38,775 4 23,550 31,322 47,100 58,875 8 39,630 52,708 79,260 99,075 STATE REVENUE The PA Department of Revenue May 25 Tax Update reports that $23.9 billion 2012-13 General Fund revenues through April show that $67.2 million has come in year to date (YTD) more than estimated. Less than expected YTD revenues were seen in sales tax (four percent less than expected). More than expected YTD revenues came in for corporate taxes (5.7%) and Personal Income Tax (PIT) revenues YTD 1.2 percent above estimate. (This comes in the wake of a damaging assessment by the Independent Fiscal Office suggesting that Governor Corbett’s proposed 2013-14 Budget will fall short of revenues by $520 million.) MARKET NOTES PA ranked fifth nationally in terms of 2012 dog bites (State Farm reported 165 PA claims at $4.5 million) according to www.PropertyCausualty360.com . The article also cited the Insurance Information Institute as saying that dog bites were more than one-third of all homeowners’ claims to the tune of $489 million in 2012. Insurance Journals list of Super Regional P/C Insurers included several companies domiciled in PA: Erie Insurance Exchange (2nd), Erie Insurance Co. (32nd), and Pennsylvania National Mutual Casualty Ins. Co. (36th), Bankers Standard (40th), Harleysville Preferred Ins. Co. (71st), Donegal Mutual (79th), Harleysville Worcester Ins. Co. (80th). New to the list at 142nd is Goodville Mutual. Other PA companies were Lititz Mutual, Atlantic States, Penn National Security Ins. Co., and OneBeacon. Data was compiled by Demotech, an Ohio-based financial analysis firm using premium and other data. San Diego-based K2 Insurance Services has acquired Dauphin County’s Aegis Security Insurance Company according to releases issued by the two companies. Official notification of this proposed acquisition has not yet been published in the PA Bulletin. Lumbermens Mutual Casualty Company which was placed into liquidation in Illinois May 10 is NOT the same as Pennsylvania’s own Pennsylvania Lumbermens’ Mutual Insurance Company. NOTE: I admit I did a double-take before realizing the true identity of the liquidated company. Thanks IA&B for pointing this out! CORRECTION: The last LEG REG REVIEW contained an error in the article ‘Treasury Issues Plan Value Proposed Rule’. The text should have read “ NOTE: According to analysis by the law firm of Ballard Spahr, if an employer’s plan is offered together with a health savings account, the employer may include as part of the plan’s minimum value percentage the value of the employer’s contribution to the H S A. Similarly, if the employee contributes to a health reimbursement account integrated with a health plan, the employer can generally include such contributions as part of the plan’s minimum value percentage.” Thanks to Andy Brackbill for spotting the error. 2.
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