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- LEG REG REVIEW
- 2004, Seventh
Issue
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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. 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.
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- MARCH 9 TORT VOTE SET
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- Senate
leadership has set March 9 as vote on tort reform. On the schedule is a vote on Senate Bill 9 sponsored by Sen.
Hal Mowery (R-Cumberland). SB
9 is a vehicle on which an amendment may be offered by Sen. Jake
Corman (R-Centre) to amend the PA Constitution to permit the General
Assembly to cap awards for non-economic damages.
The Corman Amendment is similar to SB 50, a measure that was
stymied by consensus difficulties in the Senate Judiciary Committee.
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- INSURANCE COMMITTEE PLANS HIGH DEDUCTIBLE MEETING
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- On March
25, the House Insurance Committee will hold a public hearing on SB
815 (White-R-Indiana). This
legislation amends the Insurance Department Act to stipulate that
large deductibles on policies written by insolvent insurers will be
paid to the Guaranty Funds paying the insurer’s claims, instead of
being paid to the insurer’s estate as in now the case.
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- SECRETARY ANNOUNCES CROP INS. DISCOUNT BY MARCH 15
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- PA
Secretary of Agriculture Dennis Wolff announced that PA farmers can
receive up to an estimated 22 percent discount off the net
agriculture producer premium plus cost payments of policy fees for
Crop Insurance protection on spring crops with a March 15 enrollment
deadline. Largest
discounts apply to policies at the 70% and greater level of
coverage. The
Pennsylvania portion of the premium discount, 7 percent of net
premium and policy fees, applies to all 2004 policies.
These discounts are a combination of PA Department of
Agriculture and USDA Risk Management Agency programs.
Subsidies for spring crops should be unaffected by the $
1,000,000 cut in Crop Insurance subsidies envisioned in the proposed
2004-2005 Budget.
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- POLITICAL NOTE
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- March 9
is the date of a special election for the Montgomery County and
Philadelphia legislative seat formerly held by the late Roy Cornell.
Running is insurance producer and former PAHU Legislative
Chairman Ross Schriftman on the Democratic side versus Republican
Sue Cornell, a newly elected member of the Hatboro City Council.
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- OTHER COMMITTEE ACTIVITY
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- ·
On
March 2, the House Insurance Committee and Health and Human Services
Committee convene a joint hearing on HB 2299 sponsored by Rep. John
Payne (R-Dauphin) whether PA should pass tax incentives for Health
Security Accounts (HSAs) similar to those contained within the 2003
Federal Medicare reform.
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There
are several Budget hearings convened by the House and Senate
Appropriations Committees on Department of Aging, PennDOT, L&I,
Health, Department of General Services, and others.
The House Appropriations Committee will review the Insurance
Department’s proposed budget March 4.
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Of
interest to businesses is a March 2 oversight meeting by the House
State Government Committee to review the Governor’s Strategic
Sourcing Initiative. This
Rendell Administration move seeks to reduce state expenses by
consolidating procurement purchasing into fewer, bigger, contracts.
Critics such as the NFIB counter that the plan will cut the
legs out from many of the 62,000 firms doing business with the state
and hurt prospects for economic development and recovery.
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The
February 26 Senate Appropriations hearing focused on PACE and the
timetable for prescription drug discount cards available under the
new Medicare reform. Secretary
of Aging Nora Dowd informed the committee that when First Health’s
request (for discount cards) is approved, the state will see PACE
savings. 106 companies have applied to market the drug discount card
with about 20 to be approved in March. (Thanks to PA
Legislative Service, who contributed to this report.)
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- INSURANCE DEPARTMENT 2004-2005 BUDGET HIGHLIGHTS
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- With
Commissioner Diane Koken testifying before the Senate Appropriations
Committee February 24 and again to the House Appropriations
Committee this week, what are the major changes in the Insurance
Department’s $ 236 million proposed budget?
Keep in mind that the Department Budget includes Federal as
well as state money and includes special programs such as CHIP,
AdultBasic, and Mcare (Medical Malpractice CAT Fund) as well as
basic functions such as consumer protection and company solvency.
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- General Operations sees an increase from $ 20
million to $ 21.8 million. CHIP
state money increases by one-third to $ 45.4 million. AdultBasic
administration remains relatively constant with only a $ 138,000
increase. To make up
for past budget transfers, the state must begin repaying a loan from
the Underground Storage Tank Indemnification Fund (USTIF) of $2.5
million. A proposed
consumer liaison office costs $ 411,000.
Mcare climbs by $ 13 million, mainly based on slightly higher
claim payments. 5555Activities
anticipate 162,000 ‘interventions on behalf of consumers’, up
from 159,000 this fiscal year, 8,792 rate filings and 13,382 form
filings. 35 Market
Conduct exams are planned for 04-05 versus 30 in 03-04 and 21 in
02-03. Company
financial filings remain constant at 2,900.
The budget does not break out increased revenues from new
company appointment and producer licensing increases.
Minor savings are seen from the closing of the Erie regional
office.
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