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- LEG REG REVIEW
- 2004,
Fourteenth 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.
-
- IMPORTANT NOTICE re subscription change to E-mail
- Please email jtrout2792@aol.com
supplying both your fax number and your desired email address to
convert your receipt of this publication by email.
If you do not wish to receive it, please let us know.
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- HOUSE PASSES BUDGET
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- The PA House of Representatives passed the 2004-2005 State Budget
last week. Basically,
the Budget is similar to what Governor Rendell originally proposed
in February with major funding enhancements to a wide variety of
interest areas (although concentrating on libraries and education).
These enhancements were over 100 amendments offered by
individual legislators. Now
that it goes to the Senate, expect it to be pared back significantly
before negotiations begin in June.
Of possible interest to the Insurance Community is an
amendment offered by Rep. Babette Josephs (D-Phila.) to fund
AdultBasic from the General Fund to absorb the waiting list of
uninsured adults. AdultBasic
is a government health program enacted during the Ridge
Administration for income eligible uninsured adults who pay $30 per
month. The program
shortly went through the Tobacco Settlement money allocated for this
purpose. This gave rise
to calls that AdultBasic receive general funds.
At the program’s inception, the Pennsylvania Association of
Health Underwriters warned that this program would result in demands
for public funding at the expense of other budgetary priorities.
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- PMA PETITIONS DEPARTMENT re Restructuring
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- PMA
Capital Corporation filed a request for determination by the
Insurance Department permitting a modification of its holding
company structure to include three direct subsidiaries PMA Insurance
Company, PA Manufacturers Indemnity Company, and Manufacturers
Alliance Insurance Co. This is important because of the PMA’s
holding company A.M. Best downgrade due to reinsurance holdings, not
PMA’s basic solvency.
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- HOUSE GOP PLANS HEALTH HEARINGS
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- The House
Republican Policy Committee begins an ambitious hearing schedule May
18-19 in Harrisburg concentrating on Mandatory Community Rating for
health insurers. This
hearing will focus on the original IBC proposal as well as the
Administration’s tier concept and a proposal pushed by Rep.
Nicholas Micozzie (R-Delaware) as a possible compromise between the
original and Administration ideas.
- Hearings
will be held through early September on ten health insurance areas
including Health Savings Accounts, prescription drugs and other
topics.
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- REGULATORY UPDATE
- ·
The
Insurance Department is eliminating “night clubs” from its
export list as of May 14, 2004.
The export list includes types of insurance where three
declinations by admitted carriers are not necessary before going
into the excess and surplus lines market.
- ·
Independent
Regulatory Review Commission (IRRC) sent Regulation 11-217 back to
the Insurance Department. This
proposed rule said that the Department could “from time to time”
impose additional scrutiny of company annual audited financial
reports. IRRC said that the Department was too vague and had to
specify when and for what additional review/reporting would be
required.
- ·
The
Insurance Department issued Notice 2004-03 to allow insurers to add
titles of Officers signing the Jurat page of the financial
statements submitted to the Department.
The following officers are required to certify the Annual and
Quarterly Statements: CEO, CFO, and Corporate Secretary.
Questions: Kaushik K. Patel 717/787-8557.
- ·
Two
companies are seeking Certificates of Authority. They are UPMC For You for operating an HMO in 26 county area
of western /central west PA and Keystone National Insurance Company
(stock property company).
- ·
IRRC
approved a regulation updating rules under which Mine Subsidence
Insurance operates. DEP
originates the program but insurance producers market the product.
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- REPORTS RELEASED
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The
PA Health Cost Care Containment Council (PHC4) published a list of
2003 reports. Details: Kristen Weitzel 717/232-6786 www.phc4.org.
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Mcare
estimates the outstanding liability for podiatrists to the Medical
Care Accountability and Reduction of Errors Fund as being $ 7.4
million.
- -
Robert
Woods Johnson issued a report to coincide with “Cover the
Uninsured” Week May 10-16 saying that there are 20,000,000
uninsured working Americans. This
demonstrates that the uninsured population comes from several
sectors, that there is no monolithic group. (http://bcbhealthissues.com)
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- INSURANCE AND THE STATE COURTS
- ·
The
Supreme Court Investment Advisory Board submitted a request for
proposals in order to consolidate investment operations of the
consolidation of three court-appointed boards. Anticipated size of
the consolidated portfolio is $20 million.
Source of funds comes from attorney assessments and fees for
service. To receive a
copy of the RFP, contact BY LETTER the Administrative Office of the
PA Courts, PO Box 719, Mechanicsburg, PA 17055, Attention IAB-RFP.
- ·
The
Administrative Office of the Courts also issued an Order for
attorneys to verify that they have professional liability insurance
or risk being transferred to inactive status.
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