2003 The Year in Review

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“LOOKING BEHIND”
 
Vince Phillips
Contract Lobbyist
 
The New Year is always a time to assess things.  In addition to personal evaluations of our professional accomplishments and a listing of things undone, your Association also needs to examine itself to see our progress and to look ahead to what may be in store.  2003 was an exceptionally busy year legislatively.  The pundit will immediately recognize that this is said every year.  He or she is right.  PAHU has been busy.  This activity has occurred because of the political and legislative environment that thrusts issues at us.  There are always issues on which we have to react.  Your Association has also been able to advance members’ interests proactively so that, in all, it has been a productive time for the Pennsylvania Association of Health Underwriters.
 
This success is due to the quality of member participation in the public policy process, support for the Millennium Fund and Association leadership under two administrations –Tom Link and Chub Neiman – who made advocacy an association priority.  What must also be stressed is the leadership shown by former Legislative Chairman Ross Schriftman and incumbent Bill Raab.  Each individual has given unstintingly to further PAHU’s goals.  This work has been enhanced by Mark Shaffer’s work to provide PAHU’s communication of issues by email, on the web site, and through our state magazine.  Supplementing this are local association magazines and a new service for 2004, a free subscription of the Leg-Reg Review that will go to members as a member benefit.
 
On what has PAHU been working?
 
Association Health Plans
 
PAHU sought to block House passage of a resolution asking the U.S. Congress to pass AHPs.  Among our arguments was the lack of oversight that might come if the Pennsylvania Insurance Department cannot regulate a possibly significant part of the health market.  With us were the Insurance Department and the Attorney General’s Office, and the Blues.  Differing from our view is NFIB and associated Builders and Contractors.  At year’s end, the resolution has not seen legislative action.
 
Day on the Hill and Capitol Conference
 
PAHU members descended on Harrisburg and Washington to meet with lawmakers and key staff to advance our cause on a number of issues including the need for capping non-economic damages (tort reform).
 
 
Health Cost Care Containment Council Reauthorization
 
Without reauthorization by the end of June, the Pennsylvania Health Cost Care Containment Council (PHC4) would have gone out of business.  PAHU was able to advocate reauthorization before a legislative committee.  This is important because PHC4 issues reports permitting consumer comparison of HMOs; issues quality of care evaluations of Pennsylvania hospitals and evaluating mandated benefit legislation.  The Association also worked behind the scenes with Democrats to include language providing insurance agent access to the inner workings of the HC4 with regards to reviewing the impact proposed mandated benefits would have on the marketplace.  PAHU was unsuccessful in its drive to include an agent on the Council itself.
 
Health Insurance 101
 
An annual event, PAHU convened a staff-level briefing in Harrisburg to familiarize the architects of health legislative policy with the realities of the marketplace.
 
Long-Term Care Insurance
 
PAHU has seen significant success in promoting this market including:
-         Introduction in House and Senate of Partnership legislation.  The House version passed that chamber.
-         Legislation passed the House asking the U.S. Congress to repeal the so-called Waxman Amendment.  This would enable Pennsylvania and other states to have Partnerships.
-         Support of legislation to provide Tax Incentives for those purchasing LTC insurance.  (Passed the House Finance Committee)
 
The Association was unable to bring closure to another resolution calling upon the Governor to offer long-term care insurance to state employees as an optional benefit.  Some legislators were worried that the General Assembly should not intrude into a collective bargaining situation between state unions and the Administration.
 
Mandated Health Benefits
 
PAHU advocated passage of proposals to call a moratorium to new mandated benefits while a study could be done to evaluate whether or not mandates drive up insurance costs and reduce availability.  A House amendment to another bill was not accepted but a Senate bill has potential.
 
Politics
 
PAHU played a supporting role in assisting in the election of two Republican insurance agents to the General Assembly.  One came from Delaware County and the other came from Allegheny County.  Both succeeded.  On the democratic side, former Legislative Chairman Ross Schriftman is running for the House from Montgomery County.
 
Producer Licensing
 
Implementation was the name of the game for 2003.  Act 147 became effective June 4.  One priority was simply to explain provisions of the law to members and to assist members in navigating uncertain waters.  Because of member complaints about lengthy delays with the criminal background checks, the Association sought to have a bill introduced to grant provisional licensing status to new producers that would enable them to earn an insurance livelihood during the background check.  A legislator has agreed to introduce this proposal.
 
School District Benefits
 
PAHU argued against taking away the school districts’ ability to decide what benefit packages they choose for their employees in the context of a Hay Group study of the issue mandated by the House.
 
Conclusion
 
This is a cursory list.  The Association has also been involved in other issues such as Consumer Advocate for Insurance and a host of other issues.  2004 is the second half of the legislative session.  Expect more attention spent by lawmakers on issues important to us.  Medical Malpractice and the need for tort reform are not going away.  Neither is the desire by some legislators to add additional mandated benefits that, while noble, may undermine the very system they are designed to promote.
 
 
 

 

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