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LEG REG REVIEW
2018, 3rd Issue *** January 15, 2018
 
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 Pennsylvania legislation and regulations impacting the Insurance and Business Communities.  Subscriptions are $100 per year and further information may be obtained by contacting PHILLIPS ASSOCIATES at 717/728-1217 FAX 717/232-7005 or e-mail at xenobun@aol.com.  Please email jtrout2792@aol.com supplying both your name and e-mail address if you wish to be removed from or added to this list. Whether you need help meeting your CE or have a particular problem/question, please go to our web site to explore how PHILLIPS ASSOCIATES may be of service to you, your employees, and your clients.  www.vphillipsassoc.com 
 
NOTE TO SUBSCRIBERS:  Please consider this as an invitation to renew your subscription for 2018.  Subscriptions remain $100 per year, payable to Phillips Associates, 3610 Kent Drive, Mechanicsburg, PA 17050.  Since 2002, LEG REG Review has reported on issues, legislation and regulatory developments of interest to the Insurance and Business Communities.  We hope that you continue to find it to be an informative and necessary resource to let you know what is going on.
 Sincerely, Vince Phillips
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DEPARTMENT ADVANCES MEDICARE SUPPLEMENT RULES
The PA Independent Regulatory Review Commission (IRRC) received a regulation from the PA Insurance Department January 9 updating minimum Medicare Supplement Insurance (Medigap) to reflect changes in the Federal law and to allow PA’s compliance with National Association of Insurance Commissioners model rules.  IRRC will formally vote on the proposed regulation after March 22.
 
According to the Insurance Department, these changes are required per the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) and per NAIC amendments to their model regulation. If adopted, these changes would be effective January 1, 2020.   Among other things, it: eliminates “ladle rating” where “for each year of age attained by an enrollee, the rate decreases until the insured reaches an age at which rates begin to increase significantly.” In addition:

  • A standardized plan re-designated as a high deductible plan G may be offered to an individual eligible for Medicare before 1/1/2020.
  • Medigap plans may NOT pay Medicare deductibles.However, the Medicare Part B deductible may be included as part of the out-of-pocket expenses in meeting the deductible of a high deductible Medigap Plan.
  • Plan C is re-designated Plan D; Plan F is re-designated Plan G.
  • Plans C, F, and high deductible Plan F may not be offered after 1/1/2020.

 
Close of public comments is February 22, 2018, to IRRC.  (James M. Smith and Fiona E. Wilmarth, IRRC, 333 Market Street, Harrisburg, PA 17101, irrc@irrc.state.pa.us. Insurance Department Regulatory Coordinator Bridget Burke may be reached at 717-787-2567, bburke@pa.gov.)  A link to download the text of Regulation #11-256 follows. 
http://www.irrc.state.pa.us/regulations/RegSrchRslts.cfm?ID=3200
 
GOVERNOR WOLF DECLARES OPIOID EMERGENCY
On January 10, Governor Tom Wolf declared PA’s opioid crisis to be a state health emergency.  This parallels a statement by the Trump Administration to the same effect.  It means that the state will be able to do some things administratively that could not be done otherwise and provides an impetus for more legislation being enacted to curb access to opioids.  Among other things, it creates an opioid Operational Command Center to coordinate activities of the various state agencies working on this problem.  The declaration expires in 90 days at which time it may be renewed.
REGULATORY UPDATES

  • Patient Safety Authority meets January 25 in Summerdale, PA. Details: 717-346-0469
  • PA Monitoring All Prescriptions Board (Department of Health) meets January 23, 2018 in Harrisburg.  Details: 717-547-3309
  • The PA Department of Banking and Securities released revisions to regulations affecting annuities in PA as published in the January 13 PA Bulletin: https://www.pabulletin.com/secure/data/vol48/48-2/89.html
  • Anthony P. Leske has filed an application for approval to acquire Allegheny Surety Company.
  • Hiscox Insurance Company (Bermuda) is applying to renew its designation as a certified reinsurer.

 
SURPLUS LINES TAX DEADLINE IS JANUARY 31
Deadline for surplus lines licensees to file Form RCT-123 to the PA Revenue Department is January 31, 2018.  The original RCT-123 and copies of all 2017 1620 Monthly Reports must be submitted even if there was no surplus lines activity in 2017.  The premium tax rate in PA is three percent.  Tax payments of less than $1,000 may be mailed but anything over that must be filed electronically.  Revenue Department phone number is 717-783-6031, option 7, then option 2.  Following is a link to the tax form:
http://www.revenue.pa.gov/FormsandPublications/FormsforBusinesses/CorporationTax/Pages/Corporation%20Taxes%20-%202017.aspx
 
Other Surplus Lines news:  

  • The January 13 PA Bulletin updates the Insurance Department’s list of eligible surplus lines insurers.(www.pabulletin.com)
  • On January 11, 2018, the PA Surplus Lines Association issued a Bulletin reminding PA surplus lines licensees that Act 86 regarding cancellations, non-renewals and premium increases for commercial insurance includes Surplus Lines carriers.Among other things, Act 86 allows an insured to get loss information from the carrier and requires a 60-day notice of non-renewals and cancellations.Act 86 also requires a 30-day advance notice for premium increases.
  • PA Surplus Lines Association announced that its Annual Meeting will take place May 2-3, 2018 in King of Prussia, PA. Details: www.pasla.org

 
POLITICS

  • Special election date of May 15, 2018, has been set for two House races to fill the vacancies created by resignations of Rep. Brandon Neuman (D-Washington) who was elected to the Washington County Court of Common Pleas in November and Rep. Scott Petri (R-Bucks) who became the new Executive Director of the Philadelphia Parking Authority this month.  Whoever wins their special election will be incumbents but will still have to face voters in the General Election in order to have a full two-year term.  May 15 is also the date of the Primary Election.
  • On January 11, Senator John Eichelberger (R-Blair) announced his candidacy for Congress in the Republican primary to succeed retiring Rep. Bill Shuster (R-9).  He joins two other announced Republican candidates.  House Majority leader Dave Reed (R-Indiana) may also run.
  • Rep. Will Tallman (R-Adams/Cumberland) announced that he is not seeking re-election in 2018.
 
SOME INTERESTING BILLS
Referred to the House Insurance Committee, House Bill 1996 was introduced by Rep. Aaron Berstine (R-Lawrence/Beaver/Butler) to provide a “limitation on life insurance benefits due to furtherance of terrorism”… House Resolution 522 introduced by Representatives Frank Ryan (R-Lebanon) and Seth Grove (R-York) urges the U.S. Congress to reimburse Pennsylvania $24 billion dollars in pension monies which it says was lost by the state and municipalities caused by the Federal Reserve’s policies to combat the Great Recession.  Passed by the House 126-21, it has been referred to the Senate Finance Committee.