LEG-REG REVIEW
by Phillips Associates

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LEG REG REVIEW
 
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.
 
IT’S BUDGET WEEK IN HARRISBURG
 
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.
 
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.
 
HOUSE GOP SELECTS NEW LEADERSHIP
 
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.
 
HOUSE INSURANCE COMMITTEE PLANS Rx HEARINGS
 
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.
 
ON THE REGULATORY SIDE
 
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. 
 
 
COMMITTEE MEETINGS/ACTION
 
  • 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.
 
INSURANCE FRAUD SPEAKER’S BUREAU ESTABLISHED
 
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.
 
POLITICAL NOTES
 
·        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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