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- LEG REG REVIEW
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- 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.
PSLA and PAHU members are receiving this as a Member Benefit.
Subscription information may be obtained by contacting PHILLIPS
ASSOCIATES at 717/728-1217, Fax 717/728-1164 or E-mail to xenobun@aol.com.
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- IT’S
BUDGET WEEK IN HARRISBURG
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- On February 3, Governor Edward Rendell is slated to unveil his
2004-05 Budget to a joint meeting of the PA General Assembly.
After last year’s budget cliffhanger, finally settled days
before Christmas, political observers do not anticipate a repeat of
the same divisive fireworks. Of course, there may be less of an
appetite for major tax increases during an election year.
The Governor will present his views for enhanced education
funding and property tax relief tied to legislative approval of slots
gambling as a new billion-dollar revenue source.
The new Fiscal Year begins July 1.
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- Senate
Appropriations Committee Budget hearings begin February 4 on the
Public Utility Commission (PUC).
The Insurance Department will appear before the Senate
Appropriations Committee February 24, the same day as DCED, Banking,
and L&I. The first
formal House Appropriations hearing is Feb. 4 on the PUC, the Office
of Consumer Advocate, and the Office of Small Business Advocate.
PCN covers these hearings and the Governor’s Budget Address.
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- HOUSE GOP
SELECTS NEW LEADERSHIP
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- The House Republican Caucus has voted to elect Rep. Mario Civera
(R-Delaware) to be the Chairman of its Policy Committee, a body that
has the responsibility of assisting House Republicans in formulating
positions on key issues. He
succeeds the late Roy Cornell (R-Montgomery) who succumbed to illness. The other decision made by House Republicans was to elevate
Rep. Ray Bunt (R-Montgomery) into the ranks of House Leadership with
his ascension into the position of Caucus Secretary.
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- HOUSE
INSURANCE COMMITTEE PLANS Rx HEARINGS
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- The House
Insurance Committee plans hearings Feb. 18-19 on two House bills
dealing with mail-order pharmacies.
The first, HB 1067, establishes licensing and operational
standards for pharmacy benefit (mail-order) managers.
It is sponsored by Rep. Dan Walko (D-Allegheny).
The second bill is HB 1470 sponsored by Rep. Bob Allen
(R-Schuylkill). It seeks to amend the Unfair Insurance Practices Act
to prevent insurers from placing certain restrictive requirements on
mail-order pharmacies.
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- ON THE
REGULATORY SIDE
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- Effective this week, the PA Insurance Department no longer issues
agency letters of certification.
The rationale appears to be that states needing cert letters
for a Pennsylvania insurance agency can go to the Producer Data Base
administered by the NAIC for verification.
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- COMMITTEE MEETINGS/ACTION
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- The
House Health and Human Services Committee will meet Feb. 4 to consider
six bills. One, HB 2299
(Payne-R-Dauphin), is expected to be re-referred to the Insurance
Committee. It would
extend state tax incentives to the new Health Saving Accounts (HSAs)
comparable to those in the new Federal Medicare Law.
- Another
bill, HB 1187 (Wansacz-D- Lackawanna), directs the Department of
Health to establish a task force to investigate toxic mold in homes. Although not insurance-specific, there may be insurance
implications given the harsh financial impact of mold claim legal
settlements against insurers offering homeowner’s insurance in other
states, such as Texas.
- The
House Aging and Older Adult Services Committee will hold an
informational meeting February 3 on criminal background checks for
employees who deal with the elderly
- The
Legislative Budget and Finance Committee h.as
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.
The study was mandated by passage of a 2003 House Resolution.
- February
10 is the new date set by the Senate Judiciary Committee to consider
tort cap and Medical Malpractice cap legislation.
The meeting was originally to be held last week but inclement
weather forced the postponement.
- The
Senate Aging and Youth Committee has decided to convene a second
hearing on coordination of prescription benefits between PACE and the
new Medicare prescription drug program.
This hearing is to take place February 3.
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- INSURANCE FRAUD SPEAKER’S BUREAU ESTABLISHED
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- The
Insurance Fraud Prevention Authority (IFPA) has established a
Speaker’s Bureau as a resource for community groups to better learn
about the fight against Insurance Fraud.
Speakers include volunteers from State Farm, Nationwide,
Allstate, Penn National and others who received training on personal
and commercial fraud. Details: 717/975-9074.
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- POLITICAL
NOTES
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Veteran
Democrat Jeff Coy (Cumberland/Franklin) announced his plans to retire
at the end of this year. In
the House since 1982, he has always been faced with opposition in this
Republican district. Among
his achievements are his selections as Democratic Caucus Secretary and
as a leader in the business efforts for product liability in the
1980s.
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