LEG-REG REVIEW
by Phillips Associates

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LEG REG REVIEW
2004, Eleventh 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
 
Conversion to email distribution of the Leg-Reg Review should take place by late May unless you have asked us specifically to keep you in a faxed format.  Please email jtrout2792@aol.com supplying both your fax number and your desired email address.  If you do not wish to receive this publication, please let us know and we will delete your name from our distribution list.  (NOTE: PAHU and PSLA members receive this as a free member service.)
 
HIPAA DEADLINE LOOMS
 
April 14 is the deadline for small employer compliance with the Health Information Privacy Rule under the HIPAA law.  This means that human resource managers should have ascertained applicable employee health information and compliance requirements.  Insurance producers may have a responsibility to make sure that their business clients are aware of HIPAA.  Case law through cases brought before the Equal Employment Opportunity Commission will tend to bring an operational definition to the insurance producer’s ultimate responsibility.
 
Please note these resources:
The National Association of Health Underwriters (NAHU) has a privacy guide available at www.nahu.org.  The National Association of Insurance and Financial Advisors (NAIFA) also have a guide available but only to members (www.naifa.org).  In addition, the April 29 Central PA I Day have an attorney-led component focusing on HIPAA compliance.  The seminar will be held at the Penn Harris Radisson in Camp Hill.  I Day Details:  Margaret-Lee Williams 800/761-1882.
 
LEGISLATIVE UPDATES
 
·        Auto tort bill HB 1458 (Veon-D-Beaver) was not voted on by the full House as listed on last week’s House calendar.  This bill would have changed “limited tort” auto insurance to “limited right to sue” auto insurance and presumed a consumer desire for full tort.  Backed by the trial lawyers, it faced strong opposition by insurance groups.
·        HB 2299 (Payne-R-Dauphin) was deferred by the House Health and Human Services Committee until at least April 13 because of additional time needed to review the bill’s proposed amendments to require community rating and to make HB 2299 line up more precisely with Federal H S A legislative tax incentive rules.
·        The Governor and the General Assembly both saw success with passage of SB 10 and SB 1026 as a major new economic development initiative that among other things provides for major new state bonding and business loan programs.  Resolution of the slots issue remained elusive with differences on gambling interests paying a fee to the state versus having a high bidder auction.
 
PATIENT SAFETY HEARINGS PLANNED
 
The House Insurance Committee plans hearings April 21 and 22 on patient safety and the Mcare program.  On April 21, the Medical Licensing Board will appear to discuss how Act 13 of 2002 (The Medical Care Availability and Accountability Act) has affected physician reporting of alleged medical malpractice and how disciplinary requirements have been implemented.  The second hearing involves a presentation by the Patient Safety Authority as to their patient safety initiatives.
 
LABOR RELATIONS TO CONSIDER WC COMPARISON STUDY
 
The House Labor Relations Committee will consider HR 660 (Godshall-R-Montgomery) directing the Legislative Budget and Finance Committee to conduct a study comparing Pennsylvania’s Worker Compensation system with those of neighboring states.  This may be particularly important in that it may include analysis of state Worker Compensation monopoly states and contrast their costs versus PA’s.
 
OF POSSIBLE INTEREST…
 
·        The PA Health Department announced that it is proposing to use Federal monies to aid income-eligible families with lead paint abatement for certain PA cities lying within flood plains.  These cities are Harrisburg, Scranton, Johnstown, and York.  Details: Cynthia Dundas 717/783-8451.  Information on Federal floodplain management is available from the Department of Housing and Urban Development, Karen Choi 213/894-8000.
·        SwissRe is seeking to acquire Valley Forge Insurance Company.
·        Provident Indemnity Life Insurance Company is voluntarily relinquishing its Certificate of Authority.
·        The MIB Life Index reports that life insurance applications in the U.S. declined 5.3% from last January to January 2004.  This was a 12.5% drop over a two-year period.
·        Weiss Ratings reported that P/C insurer earnings climbed 112% in the first nine months of 2003 over the same period in 2002.  This translates into $ 12.1 billion in 2003 versus 2002’s $ 10.8 billion.
·        A survey by Robert Half Management Resources suggests that two areas of vulnerability cited by CFOs are disaster recovery and security of information systems.
·        Effective March 27 was a Worker’s Compensation Bureau statement of policy governing the certification of vocational safety experts.  This implements Act 53 of 2003, a piece of legislation restoring L&I’s ability to credential these experts.  This authority had been struck down in a Supreme Court ruling.

 

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