LEG-REG REVIEW
by Phillips Associates

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LEG REG REVIEW
2004, Eighth 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.
 
IMPORTANT NOTICE TO LEG-REG RECIPIENTS
 
Cost of faxing is climbing due to increased demand for the Leg-Reg Review.  We ask that you assist us in keeping this publication economical.  Please send your email address to jtrout2792@aol.com so that we can convert your subscription to email.  If you prefer to receive it via fax, please let us know and we will be happy to oblige.  Likewise, if you are receiving this publication and do not wish to, please advise us and we will delete your name from our distribution list.  (NOTE: PAHU and PSLA members receive this as a free member service.)
 
H S A HEARING FOCUSES ON PREMIUM SAVINGS
 
The March 2 hearing on Health Savings Accounts (HSAs) convened by the House Insurance and Health & Human Services Committees focused on the viability of high deductible group health plans with a savings account feature.  HSAs are designed to recoup savings into a special account that the employee and family can use for medical needs.  Legislated by the 2003 Medicare reforms, HSAs follow on the footsteps of Medical Savings Accounts, Flexible Spending Accounts, and HRAs.  What distinguishes them is portability and employee ownership.  Speakers lauded HSAs for reducing employer health premiums because of the high deductible plan and felt that health care costs would decline because minor ailments would not warrant a trip to the doctor since consumers would manage cost instead of being shielded by employer subsidy (up until the deductible is paid).  Testifying for HB 2299 (Payne-R-Dauphin) were the Insurance Federation, PA Manufacturers Association, the NFIB, several insurance companies, and the Pennsylvania Association of Health Underwriters.
 
While generally well received by lawmakers, opposition came from Rep. Todd Eachus (D-Luzerne) who maintained that HSAs were for the ‘privileged’ and would not help those workers at marginal levels.  MSA First suggested that amendments were needed to bring HB 2299 in line with Federal law.  The Insurance Federation suggested that a simple amendment to a 1996 law establishing PA tax incentives for MSAs could simply be amended to include this new product.  No group testified in opposition to the bill.
 
PAHU noted that HSAs might be necessary to stabilize the group market given the fact that most Pennsylvanians receive their health benefits through the group.  Thus, HSAs should be supported both by those who want to see individual insurance grow (personal choice etc.) and those who prefer the group model.
 
CORRECTION
 
The last issue of Leg-Reg Review incorrectly identified PA Cable Network’s web site.  The correct listing is www.pcntv.com.  This site gives you access to coverage of various hearings and Capitol Hill events.
 
WORKER’S COMP NOTES
 
·        The Bureau of Worker’s Compensation issued a notice to the effect that the statewide average weekly wage for injuries occurring on or after January 1, 2004 is $ 690.00 per week.  The update to medical treatment payments on and after January 1, 2004, the percentage increase in the statewide average weekly wage is 2.2 percent.
·        The Insurance Department notified Worker’s Compensation insurance carriers that by April 15, 2004, they must supply information for calendar year 2003, some of which includes premium, losses, deductible adjustments, claim counts etc.  The form is Special schedule W.  Details: Brenna Murphy, Actuarial associate, 717/783-2114, bmurphy@state.pa.us.
 
THIS MAY BE TORT WEEK
 
March 9 remains the date set for debate and a Senate vote on tort reform.  On the schedule is a vote on Senate Bill 9 sponsored by Sen. Hal Mowery (R-Cumberland).  This 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 Senate Judiciary Committee moved SB 9 because of committee inability to reach consensus.  The vote is expected to be very close.
 
DEPARTMENT NOTES
 
·        Daily Underwriters of America, a PA stock property insurance company, has submitted a Plan of Recapitalization to the Insurance Department.
·        SwissRe has filed an application to purchase Valley Forge Life Insurance Company.
·        The 2004 Organization Chart of the PA Insurance Department was published in the PA Bulletin February 28.  Publication of this chart is required annually under PA law.
 
PHILLIPS ASSOCIATES ANNOUNCES PRE-LICENSING COURSES
 
PHILLIPS ASSOCIATES announced several offerings of Pre-Licensing education for both P/C and Life/Accident/Health.  They will be offered in Horsham April 26-28 (L/A/H), Harrisburg (both P/C and L/A/H) on June 15-17, and Monroeville with L/A/H offered June 23-25 and P/C July 14-16.  Details: 717/732-7255.
 
 
 
 

 

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