LEG-REG REVIEW
by Phillips Associates

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LEG REG REVIEW
2004, Third Issue
 
LEG REG REVIEW is a periodic newsletter produced by PHILLIPS ASSOCIATES, a professional lobbying and consultant firm based near the State Capitol.  It contains news on the Legislative and Regulatory scene in Pennsylvania that may be of use to insurance producers, companies, and interested parties.  It is a free Member Service if you are a member of the Pennsylvania Association of Health underwriters (PAHU) or the PA Surplus Lines association (PSLA).  Subscription information may be obtained by contacting PHILLIPS ASSOCIATES at 717/728-1217, Fax 717/728-1164 or E-mail to xenobun@aol.com.
 
HAY REPORT ON SCHOOL BENEFITS TO BE RELEASED FEB. 4
 
The Legislative Budget and Finance Committee has scheduled a February 4 meeting to discuss the results of a study conducted by the Hay Group on whether or not school district health benefit programs should be rolled into one master program administered by the Commonwealth.  Proponents believe that there would be economies of scale if school districts were to relinquish their traditional local choice.  Opponents such as the Pennsylvania Association of Health Underwriters believe that school districts should be able to work with local insurance professionals to craft their own program.  The study was mandated by passage of a House Resolution in 2003.
 
COMMITTEE MEETINGS/ACTION
 
·        The Senate Appropriations Committee passed SB 815 sponsored by Sen. Don White (R-Indiana).  This legislation would amend the Insurance Department Act by providing for policyholder collateral, and for deductible reimbursements.  It has already passed the Senate Banking & Insurance Committee and is poised for action by the full Senate.
·        The Senate Aging and Youth Committee is holding a hearing January 28 on implementation of the new Federal Medicare law as it relates to prescription drug coverage for seniors.  Of particular interest is how or if the Federal changes will affect the Commonwealth’s PACE program and how prescription drug benefit cards factor into the equation.
·        The House Labor Relations Committee is convening a meeting Feb. 11 to discuss several bills, one of which deals with insurance.  HB 1014 (Barrar-R-Chester) would require that insurers make timely payment of wage-loss benefits under Worker’s Compensation (7 days) or be subject to decision by an L&I referee that could mean a penalty equal to 50 percent of the award of compensation (assuming that the insurer had not appealed the claims determination).  Consideration by a referee is not automatic in that a formal petition would have to be filed.
 
A non-insurance bill before the committee is HR 528 (McIlhattan-R-Clarion) to require that the Legislative Budget and Finance Committee initiate a study of the effectiveness of workforce development programs.  This was part of the Keystone Manufacturing Initiative recently announced by a group of Republican members.
 
ON THE REGULATORY SIDE
 
·         A note of interest to surplus lines licensees: First, state taxes must be paid by January 31, 2004, and a complete copy of the SL tax form must be sent to PSLA, 211 Welsh Pool Road, #200, Exton, PA 19341 610/594-1340. 
·         The Patient Safety Authority (Medical Malpractice) will meet February 2 in Harrisburg.  Details: 717/783-3770.
·         The Independent Regulatory Review Commission (IRRC) has approved Regulation 10-174 dealing with Out of Hospital Do Not Resuscitate Orders per Act 59 of 2002.
·         PA Compensation Rating Bureau issued two Circulars on January 21.  Circular 1472 alerts company members may access USR Online as a resource to access and review unit statistical reports. (Details: Bonnie Piacentiro 215/568-2371 x 4456)  The second, Circular 1472, stipulates that member companies must specify in writing by the CEO on letterhead who the “Carrier Group Administrators” are so as to better monitor who has access to the PCRB data base.  (Details: John Murphy 215/568-2371 x 4418)
 
POLITICAL NOTES
 
-          This week begins the official period in which petitions can be circulated for the various primary contests.
-          Sen. Jack Wagner (D-Allegheny) received the Democratic State Committee endorsement for the position of Auditor General.  With this comes an abandonment of that race by Rep. Jennifer Mann (D-Lehigh).
-          Sharon Cole, House Research Analyst (formerly with the House Insurance Committee) seeks the nomination for the open seat created by the retirement of Rep. Allan Egolf (R-Perry).
-          Retiring is veteran Democrat Guy Travaglio from Butler County.  Brian Ellis, who lost last time by just 612 votes, is running again for the now open seat.  He has run into a political problem according to PittsburghLive.com because of allegations of alcohol and marijuana dating back to the early 1990s.
-          Rep. Jeff Coleman (R-Armstrong) announced his post-political plans.  He plans to be a talk radio host according to Sunday’s Patriot-News.  Former Democratic Rep. Tim Pesci, whom Coleman upset, is rumored to be considering a try for his old seat.
-          Staff contest in Cumberland County?  Philadelphia Democratic Senator Allyson Schwartz’ chief of staff Marilynn Zilli is running to succeed Rep. Pat Vance who is trying to succeed retiring Senator Hal Mowery.  Depending on the outcome of the Republican primary, she may be squaring off against Senator Gib Armstrong’s (R-Lancaster) Banking & Insurance Committee Executive Director Chris Latta.  Also running in the GOP contest is local attorney and former ridge official Glen Grell.
 
PHILLIPS ASSOCIATES CE UPDATE
 
Upcoming are CE Tours in Western and Central PA in early February.  Western CE of courses in Mitigating Disaster and Worker’s Comp in a Hard Market are offered in Uniontown Feb. 9, Monroeville Feb. 10, Indiana Feb. 11, and Meadville Feb. 12.  Central PA classes are
E&O In-Depth and Worker’s Comp in a Hard Market in Harrisburg Feb. 9, Danville Feb. 11, and Lancaster Feb. 12.  Each course is four hours.  Details: Joan Troutman 717/732-7255.
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