LEG REG REVIEW
2019, 12th Issue *** May 13, 2019

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.

HOUSE COMMITTEE HEARS EXCHANGE TESTIMONY
On May 7, the House Insurance Committee convened an informational meeting on whether Pennsylvania should undertake a State-Based Exchange in lieu of the exchange plan we have now known as the Federally-Facilitated Marketplace. This would be done through an Affordable Care Act Section 1332 waiver (State Relief and Empowerment Waiver) request to the Centers for Medicare & Medicaid Services.

PA Insurance Commissioner Jessica Altman argued that the request has to be made by the end of June in order to take effect for the 2020 open enrollment period.

If approved, the state-based exchange would transfer authority to approve which plans can be sold on the exchange from the Federal Government to the Commonwealth. In addition, the Commissioner said that this change means that Pennsylvania would now:

Directly handle consumer complaints
Fund and design “tailored customer assistance”, marketing, and advertising strategies for the exchange
Conduct direct outreach to exchange enrollees, applicants, and former enrollees
“Design and optimize the consumer shopping experience”
House and have the ability to analyze enrollment data
Coordinate exchange with other state agencies and programs
Have the ability to define additional special enrollment periods as appropriate

Currently, the ACA mandates a 3.5% of premium fee from insurers to fund Federal Marketplaces (exchanges). With a state-based plan, the percent would drop to three-percent. A component of the PA waiver request would be the use of reinsurance. This would be funded by the difference in money saved from the state administering the exchange versus Healthcare.gov. Altman also said that seven states have already received Section 1332 waivers allowing them to establish state-based exchanges. These are Alaska, Maine, Maryland, Minnesota, New Jersey, Oregon, and Wisconsin.

In case you missed this hearing on PA Cable Network, you may still access it by way of www.pahousegop.com/video . Commissioner Altman’s testimony is available at https://www.insurance.pa.gov/Documents/Press%20and%20Communications/Testimonies,%20Remarks,%20Speeches/2019/PID%20Testimony%20Before%20the%20House%20Insurance%20Committee_5.7.19.pdf .

WORKERS COMPENSATION HEARING LOOKS AT LONG-TERM
On May 6, the House Labor & Industry Committee held a public hearing on House Bill 1234 (Cox-R-Berks) to expand the authority of the Workers’ Compensation Act to include longer-term illnesses tied to employment where symptoms manifested themselves more than 300 weeks after the last date of employment. Doing this is intended to reduce the amount of litigation in areas like asbestos where latent injuries may not reveal themselves until years after employment. Currently, after the 300 weeks, a former employee can sue the employer for these ‘latent occupational diseases’.

A MANDATORY RETIREMENT PLAN?
On June 5, the House Finance Committee will conduct a hearing on State Treasurer Torcelli’s proposal to establish a state retirement plan with mandatory participation by small employers which do not have a retirement plan now. Employees would be automatically enrolled and the premiums would be deducted from their paychecks unless they affirmatively opted out. NFIB and the PA State Grange have expressed concern about the mandatory participation (and accompanying administrative costs) for employers.

LEGISLATIVE UPDATES
This week, the House of Representatives is in session. The Senate returns to Harrisburg on June 3.

House Bill 328 (Warren-D-Bucks) establishes a Flood Insurance Premium Assistance Task Force. It was referred to the Senate Banking & Insurance Committee.
Senate Bill 109 sponsored by Senator Gene Yaw (R-Lycoming) establishes a legal mandate requiring passengers to give assistance including the making of medical transport arrangements if the driver cannot or refuses to render such aid. The bill is silent as to any liability connected with this passenger assistance but does impose a $300 fine on the passenger if convicted from having not provided this assistance. Status: on second consideration by the Senate
House Bill 427 (Benninghoff-R-Centre) mandates health insurance coverage requirements for stage- four metastatic cancer is on the House calendar for second consideration.

ABORTION BILL IGNITES FLOOR STORM
Sponsored by Rep. Kate Klunk (R-York), House Bill 321 generated harsh debate on the floor of the PA House as pro-choice and pro-life advocates wrestled over whether or not abortions would be prohibited if the sole reason was a diagnosis of Down Syndrome. Capping the debate were Democratic motions to overrule a parliamentary decision by Speaker Mike Turzai (R-Allegheny). These failed on party line votes with Republicans backing the Speaker’s decision. The spark here was an amendment seeking to delay implementation of HB 321 when or if Roe v. Wade was ruled unconstitutional. The amendment was ruled out of order because HB 321 was a Title 18 (Criminal Code) bill and thus the amendment was deemed to not applicable. Final action on the e bill was a re-assignment of the legislation to the House Appropriations Committee. NOTE: Last issue of LEG REG Review incorrectly listed this bill as House Bill 1234. LR apologizes for the error.

HOUSE INSURANCE COMMITTEE TO CONSIDER TWO BILLS
The House Insurance Committee will be voting this week on two insurance bills. First is House Bill 924 (Toohil-R-Luzerne) which prohibits discrimination by insurers in the provision of life, accident, and health insurance based on the status of the insured as a living organ or tissue donor. The second piece of legislation is House Bill 1283 (Moul-R-Adams) seeks to protect retirement plan benefits when an employer transfers its pension obligations to an insurance company. Called ‘pension de-risking’, employers reduce their risk and costs associated with managing a retirement plan by having a group annuity contract. According to Moul, this practice can lead to retirees’ benefits being garnished by creditors.

REGULATORY UPDATES

Oscar Health Plan of Pennsylvania filed an application to operate as a Health Maintenance Organization to do business in Delaware and Philadelphia Counties.
Wilton Reinsurance Bermuda, Ltd. has applied for designation as a certified reinsurer in PA.
There were two re-confirmation votes relevant to insurance interests held last week by Senate committees. Both committee votes were unanimous.

The Senate Banking & Insurance Committee favorably reported the re-confirmation of Robin Weissmann as Secretary of the Banking & Securities Department.
The Senate health & Human Services Committee favorably reported the re-confirmation of Teresa Miller as Secretary of the Department of Human Services.