LEG REG REVIEW
2018, 8th Issue *** March 5, 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
BUDGET HEARINGS CONCLUDE THIS WEEK
The annual House and Senate Appropriations Committee hearings on the State Budget conclude this week. Tops on the list for many will be the Department of Education (March 5 for House; March 6 for Senate), Department of Human Services which runs the state’s Medicaid program (March 6 for House and March 7 for the Senate), and Department of Aging on March 6 in the Senate. Topping off the hearings is the Governor’s Office and Office of the Budget on March 8 for both House and Senate Appropriations Committees where scrutiny may center on from where the revenue will come to fund the State Budget. PA Cable Network (https://pcntv.com/schedule/ ) airs most of the hearings.
GOVERNORS PROPOSE HEALTH SYSTEM BLUEPRINT
On February 23, 2018, a group of Governors – two Republican (Ohio and Nevada), two Democrats (Pennsylvania and Colorado) and one independent (Alaska), released a document outlining the approach that should be taken to “transform health care systems to produce better health outcomes at a lower cost to governments, employers, and individuals.” One of its’ major goals is to stabilize the individual market, to provide “access to a healthy, stable, and competitive market of insurers from which to choose.”
The document says that America is looking at the wrong set of choices such as either having high quality health care or reducing costs; either being fiscally responsible or being generous and humane; either fostering individual accountability or supporting people in need. To the Governors, these are false choices. Examples of better approaches would be:

Building upon existing financial incentives to encourage consumers to secure coverage and prepare for out of pocket expenditures
Directly combating anti-competitive behavior particularly among local hospital systems, pharmacy benefits managers, and pharmaceutical companies
Moving away from fee for service care to value outcome care as a basis for Medicaid reimbursements

The document does not list specific legislation or regulatory changes per se but it does suggest looking at bureaucratic impediments to drug importation. Following is a link to the Bipartisan Blueprint for Improving Our Nation’s Health System Performance: https://www.governor.pa.gov/wp-content/uploads/2018/02/23.02.2018-Bipartisan-Health-Care-Blueprint.pdf
POLITICS

Minority House Transportation Committee Chair Bill Keller (D-Phila.) is not seeking re-election. This means that both Majority and Minority Chairs of this committee will be new in 2019.
Rep. Madeleine Dean (D-Montgomery) has withdrawn her bid for the Democratic nomination for Lt. Governor and is choosing to run for Congress in the redrawn open 4th congressional seat.

INSURANCE DEPARTMENT LISTS REGULATION SCHEDULE
On March 3, 2018, the PA Insurance Department listed five regulations that it hopes to pursue in 2018 and early 2019. These include Medicare Supplement Insurance (Medigap), Health Insurance Company Reserves, Transportation Ride Sharing Network (Uber, Lyft) endorsements, Privacy & Opt-Out Annual Notices, plus a major re-write of Producer Licensing. The licensing regulation is expected in spring 2019 and will set forth requirements and standards for a single licensing system.
https://www.pabulletin.com/secure/data/vol48/48-9/343a.html
SURPLUS LINES: DEPARTMENT ASKS EXPORT QUESTION
On March 2, 2018, the PA Insurance Department issued a query to the insurance industry to see what types of property/casualty insurance should be placed on what is known as the export list. These types of coverage are considered as unobtainable in the standard market, allowing surplus lines licensees to go directly into the E&S market without having to first obtain three declinations from standard carriers. Examples are Day Care Centers, Hunting Clubs, Monoline Dog Bite liability and Pest Control liability.
There is a thirty day comment period regarding suggested additions to the export list. Written statements go to Cressinda Bybee, Office of Corporate & Financial Regulation, PA Insurance Department, 1345 Strawberry Square, Harrisburg, PA 17120. cbybee@pa.gov Following is a link to the present list: https://www.pabulletin.com/secure/data/vol47/47-19/837.html
REGULATORY UPDATE

Data call was issued to Workers’ Compensation carriers by the PA Insurance Department. This Special Schedule “W” data call is an annual requirement. Reports are due to the Department by April 16, 2018. Details: Bojan Zorkic 717-787-6968; bzorkic@pa.gov
Meetings:

Patient Safety Authority meets March 12 at Central Penn College in Summerdale, PA. Details: 717-346-0469
Health Care Cost Containment Council (PHC4) meets March 8 in Harrisburg. PHC4 has the responsibility of collecting health treatment data (for example, the numbers of re-admissions due to hospital-acquired infections). There has been interest in expanding its purview to chart health provider treatment pricing and drug pricing as consumer comparison tools.

Cancer Drug Repository Program administered by the State Board of Pharmacy issued income thresholds for eligibility. Also known as the Cancer Drug Bank, this program was established to gather unused expensive cancer drugs and provide them to those who cannot afford the prohibitive price. An individual’s eligibility is based on family income: A one-person family, less than $42,490 in 2017 be eligible for 2018; 2-person family income is $57,610; 4-person family threshold is $87,850, etc. Details: Janet Getsy Hart 717-783-7156; st-pharmacy@pa.gov

UPCOMING: The PA Insurance Fraud Conference will be held April 12 and 13, 2018. Sponsored by the Insurance Fraud Prevention Authority (IFPA) and the Delaware Valley and Greater Pittsburgh chapters of the International Association of Special Investigation Units (IASIU), details are available from Tom Donahue 717-691-1828; tdonahue@helpstopfraud.org.

IN PASSING…Former U.S. Congressman Jon Fox from Montgomery County has passed away. Personal note: When I first visited him in his congressional office in the Cannon House Office Building in Washington, I saw on his wall a framed invitation to President Nixon’s 1969 inauguration. When I commented, he told me that his new office in D.C. was the same office that Nixon had when he was first elected to Congress decades before. He wanted to recognize that bit of history. I thought that was pretty classy. Vince