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 CLEARS NURSING HOME TORT REFORM BILL

A bill sponsored by Rep. Glenn Grell (R-Cumberland) which limits punitive damage awards in civil liability cases against nursing care facilities passed the PA House January 18 by a 103-89 vote.  House Bill 1907 limits such awards to 200 percent of the compensatory award and now goes to the Senate for consideration.  An exception to this legal limitation would be in cases where there was clear intentional misconduct.

INSURANCE COMMITTEE HOLDS DENTIST INSURANCE HEARING

On January 26, the House Insurance Committee will hold a hearing on Senate Bill 338 (Vance-R-Cumberland) to mandate that dentists purchase medical malpractice liability insurance as doctors and hospitals do now.  The PA Dental Association supports the legislation.

SOLVENCY BILL ON HOUSE INSURANCE AGENDA

A voting meeting of the House Insurance Committee January 25 will consider House Bill 2134 (Micozzie-R-Delaware) to provide a “trend test” to better gauge insurer solvency in the life and health market.  This legislation gives the Insurance Department an additional monitoring tool and helps the state maintain its NAIC accreditation as being equipped to evaluate company solvency.

POLITICS

• U.S. Representative and former PA House member Todd Platts (R-19) is not running again, citing a promise to abide by term limits.  Already announcing is PA House Member Scott Perry (R-York).  According to media reports, Senator Mike Waugh (R-York) is also regarded as a possible candidate.  The person who opposed Platts in the last congressional primary, Mike Smeltzer, head of the Manufacturers Association of South Central PA, has not given an indication as to his 2012 plans.
• Rep. Chesea Wagner (D-Allegheny) apparently decided to resign after all.  Earlier, she had reportedly wanted to keep her legislative seat in Harrisburg and her new Allegheny County post after it became clear that the special election to replace her would take place in the Lehigh Valley and not in Pittsburgh.

CLASS REPEAL MOVES FORWARD

An attempt to repeal PPACA’s Community Living Assistance Services and Supports Act (CLASS) moved a step closer with this last week’s 23-13 vote by the US House Ways and Means Committee for HR 1173.   CLASS was PPACA’s employer-based long-term care program which ran into actuarial trouble when it became apparent that CLASS could not sustain itself because of adverse selection.  Earlier, the Obama administration backed off from implementation but the legal authority still exists.  Joining the majority to repeal was Ways & Means Committee member Rep. Jim Gerlach from southeast PA.  In addition, five PA congressmen are sponsoring the bill. They are Reps. Mike Kelly, Tim Murphy, Glenn Thompson, Tom Marino and Bill Shuster.

OBIT NOTE FOR JACK LOSH…Reported in the January 22 Patriot-News is the passing of pre-licensing instructor icon Jack Losh.  For decades, he was a fixture in the training conducted by the former Independent Agents of PA.  The Big I thought so much of him that they named their educational award after him.  We’ll miss you Jack.

MEDICAL RECORDS FEE SCHEDULE ANNOUNCED

On January 21 the PA Bulletin re-published the PA Department of Health’s list of what fees might be charged by health care providers to those seeking copies of medical records.  Exempted from this fee schedule are insurers who are trying to validate charges in settlement of an insurance claim (except for Workers’ Compensation).  A request from a Social Security or any Federal or state financial needs based program or for a district attorney have a flat fee.  X-ray film is not covered by this Notice since it “is not susceptible to photostatic reproduction.” The DOH originally published this schedule December 3, 2011 but it turns out there was a typographical error and so the list was re-released.

Schedule of charges is as follows:

- Pages 1-20                                        not to exceed $1.39 per page

- Pages 21-60                                      not to exceed $1.03 per page

- Pages 61 and above                          not to exceed 34 cents per page

- Microfilm per page charge               $2.04

- Flat fee re Social security claim        $26.12

- Flat fee for records sought by DA     $20.62

In addition to these fees, charges for postage, shipping and delivery may be imposed.

DEPARTMENT ISSUES EXCHANGE RATIONALE

On January 19, the PA Insurance Department issued a statement from Commissioner Consedine that spells out the rationale for the Corbett Administration’s seeking of a $33 million grant from the US Department of Health & Human Services when PA is seeking an unconstitutional ruling from the US Supreme Court against the Patient Protection Affordable Care Act (PPACA).  The document restates the Corbett view that the Federal law is unconstitutional but unless repealed or knocked down by the Supreme Court, it is still the law of the land and Pennsylvania must still have legislation in place January 1, 2013 establishing a state Health Insurance Exchange or HHS will impose its own Exchange on the Commonwealth.

NFIP OFFERS WEBINARS

Three Webinars will be offered this coming week by the National Flood Insurance Program (NFIP).  Topic for January 24 is FEMA Mapping Changes.  Advanced Flood Training is offered January 26 as is Elevation Rating. Details:  http://www.fema.gov/business/nfip/a_wshop.shtm  NOTE: In-agency Flood Insurance CE is offered by PHILLIPS ASSOCIATES.

CROP INSURANCE LOSSES LISTED BY COUNTY

On January 17 USDA Risk Management Agency (RMA) issued a county by county loss statement for Crop Insurance payouts for 2011.  Eight PA counties had RMA crop indemnities exceeding one million dollars (figures slightly rounded): Franklin $7 million; Berks $2.7 million; Blair $1.9 million; Huntingdon $1.5 million; Adams $1.3 million; Lancaster and Lebanon $1.2 million each; and Schuylkill with $1.1 million.  Posting close to the $1 million mark was Bedford County at $900,000.  Most counties sustained claims ranging from $100,000 to $600,000.  Three counties had no indemnities for Crop Insurance (Forest, Pike, and Cameron).  Details:  http://www.rma.usda.gov/data/indemnity/2011/11712table.pdf . These numbers may become important after Governor Corbett releases his Budget proposal for FY 2012-13 which would likely NOT resurrect the PA Crop Insurance Premium Subsidy Program

MARYLAND EXCHANGE NOTE

According to Insurance & Financial Advisor of January 6, 2012, , Executive Director of Maryland Health Benefit Exchange Rebecca Pierce told lawmakers that agents and brokers should sell the exchange products and serve as Navigators since duplicating services with unlicensed navigators would be expensive and inefficient.