LEG REG REVIEW is a periodic newsletter produced by PHILLIPS ASSOCIATES, a professional lobbying and consultant firm located near the State Capitol.  It contains news on the legislative and regulatory scene in Pennsylvania that may be of interest to the Insurance and Business Communities.  It is a free member benefit for those who are members of the Pennsylvania Association of Health Underwriters (PAHU) or Manufacturers Association of South Central PA (MASCPA).  Subscription information may be obtained by contacting PHILLIPS ASSOCIATES at 717/728-1217 FAX 717/728-1164 or e-mail to xenobun@aol.com.  Please email jtrout2792@aol.com supplying both your name and e-mail address if you wish to be removed from this list.

TORT BILL ON HOUSE CALENDAR

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

BUDGET HEARING SCHEDULE SET

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

Agency                                               Date/Time/House/Senate

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

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

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

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

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

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

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

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

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

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

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

COMMITTEE WORK

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

NAIC CLOSES LIFE COMMENTS BY JANUARY 30

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

HHS STRIKES AGAIN re RATES

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

POLITICS & RETIREMENTS

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

NAIC ADDS DI TO INTERSTATE COMPACT LIST

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

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

MARKET NOTES

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