LEG REG REVIEW Health Edition
2018, 14th Issue *** April 23, 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.

BUSY WEEK FOR INSURANCE LEGISLATION
This past week saw a number of developments in insurance legislation.

REBATES AND INDUCEMENT BILLS
Senate Bills 877 and 878 (White-R-Indiana) are going to the Governor for his signature this week. They would end the prohibition on offering rebates and inducements now contained within Act 205 and numerous other statutes. On April 18, the PA Senate concurred with House amendments to finalize their consideration of the legislation.

UNLICENSED SALE OF INSURANCE BILLS
House Bill 504 (Charlton-R-Delaware) permits unlicensed retail clerks in self storage unit companies to sell contents (property) insurance. The House voted 192-0 to pass the bill and send it to the Senate. A limited lines producer license would be issued to a storage unit owner who would then designate unlicensed employees (called ‘authorized service representatives’) as those being able to solicit and sell contents insurance. These authorized service representatives would complete an unspecified length of training on property insurance basics. An important amendment to the bill is that the training must be approved by the Insurance Department. During the sale of contents insurance, the customer must be informed that contents insurance may not be necessary if the customer already has homeowner’s insurance and be provided with a brochure which describes insurance provisions. An owner is not required to have a limited lines producer license if the insurance solicitation is limited to display brochures and other promotional materials created by an insurer. A limited lines self-service storage insurance producer is not required to take continuing education.

On April 18, Senate Bill 630 (Reschenthaler-R-Allegheny) permitting unlicensed employees (called ‘travel retailers’) to sell travel insurance was re-referred to the House Appropriations Committee.. A limited lines insurance producer’s licensee is responsible for the travel retailer’s actions. Training must take place and the limited line producer licensee must maintain a registry of travel retailers.

OTHER LEGISLATIVE DEVELOPMENTS

Senate Bill 1003 (White-R-Indiana), allowing ambulance and emergency personnel to be reimbursed by insurers if called to an accident scene and the affected person declines transport to the hospital, was amended during second consideration. It is poised for a final Senate vote.
The House Human Services Committee met on April 18 to consider House Bill 1535 to require transparency from health care providers on the treatment of autism and for those with intellectual disabilities. The bill was amended and reported out with no dissenting votes.

INSURANCE COMMITTEE MOVES MEDICAL SYNCH BILL
The House Insurance Committee reported out House Bill 1800 sponsored by Rep. Eric Nelson (R-Westmoreland). It would allow for what is called medication synchronization, enabling pharmacists to provide partial prescriptions in order to make fill or refill dates the same. It seeks to reduce the numbers of people who do not take their medications because of difficulties in getting to the pharmacy multiple times during the month. HB 1800 prohibits insurers from denying coverage on the basis that it is a partial Rx fill.

WORKERS’ COMPENSATION DRUG FORMULARY
On April 18, the House voted 101-92 to pass Senate Bill 936 (White-R-Indiana). This bill establishes a drug formulary for Workers’ Compensation. One of its purposes is to reduce the amount of opioid prescriptions. This was vigorously opposed by organized labor and their political allies who maintained that SB 936 would reduce the medical treatment choices for workers. Opposition was not limited to Democrats.

This vote came about by a motion to reconsider a February 6 tie vote of 98-98. What made the difference is that two Republicans changed their votes from ‘no’ to ‘yes’ --Rep. Brian Ellis (R-Butler) and Rep. Harry Lewis (R-Chester). Five Democrats were absent for the final passage vote on April 16 vote. Given the contested nature of this legislation, it is unclear what Governor Wolf will do as there was no word from the Governor’s office over the weekend. He has until April 28 to decide.

ON THE SENATE CALENDAR
On the third consideration (final vote) calendar is Senate Bill 595 (Folmer-R-Lebanon). This would allow notaries to utilize real-time video to authenticate documents and verify an electronic signature.

On second consideration (meaning that they must be considered by the full Senate one more time before a final vote can be taken) are:

Senate Bill 257 (Ward-R-Westmoreland) which among other things, prohibits vision benefit plans in their provider contracts, from setting fees for non-covered vision services, and requires vision benefit plans to provide uniformity among providers in reimbursements for covered and non-covered services.
Senate Bill 780 (Vogel-R-Beaver) sets forth insurance rules regarding the practice of telemedicine.

REGULATORY UPDATE
The April 21 PA Bulletin published Insurance Department Notice 2018-4 on Autism Spectrum Disorders Maximum Benefit Adjustments. According to the document, the maximum benefit is adjusted upward to $40,501.00, from $39,668.00. The new limit will take place for policies issued or renewed in 2019. Questions? Ra-rateform@pa.gov

POLITICS

U.S. Rep. Charles Dent (R-15) announced that he is leaving the U.S. Congress before the end of his term as soon as May.
New Democratic U.S. Representative Conor Lamb has a clear field to be his party’s nominee against incumbent Republican Keith Rothfus after Ray Linsenmayer dropped out. Lamb narrowly won a special election but his district was moved due to the PA Supreme Court’s redistricting.
Election Dates: May 8 is the last day to apply for an absentee ballot. May 11 is the last day for a county election board to receive a civilian absentee ballot for the May 15 spring primary election. There is one more date. May 22 is the final day that a county election board may receive a military absentee ballot.
The PA Election Bureau has listed the candidates running in the May 15 primary. . https://www.pavoterservices.pa.gov/ElectionInfo/electioninfo.aspx
The PA Department of State has published a tool to help voters figure out in which re-drawn congressional district they live. http://www.dos.pa.gov/VotingElections/CandidatesCommittees/RunningforOffice/Pages/Petition-Notice.aspx#districtmaps