1Amending the act of May 17, 1921 (P.L.789, No.285), entitled, as
2amended, "An act relating to insurance; establishing an
3insurance department; and amending, revising, and
4consolidating the law relating to the licensing,
5qualification, regulation, examination, suspension, and
6dissolution of insurance companies, Lloyds associations,
7reciprocal and inter-insurance exchanges, and certain
8societies and orders, the examination and regulation of fire
9insurance rating bureaus, and the licensing and regulation of
10insurance agents and brokers; the service of legal process
11upon foreign insurance companies, associations or exchanges;
12providing penalties, and repealing existing laws," providing
13for right to purchase health insurance sold in other states.

14The General Assembly of the Commonwealth of Pennsylvania
15hereby enacts as follows:

16Section 1.  The act of May 17, 1921 (P.L.789, No.285), known
17as The Insurance Department Act of 1921, is amended by adding a
18section to read:

19Section 107.  Right to Purchase Health Insurance Sold in
20Other States.--(a)  The Insurance Commissioner shall undertake a
21review of laws and regulations existing on the effective date of
22this section pertaining to the business of health insurance in

1this Commonwealth and in other states to determine how to allow
2Pennsylvania residents the ability to purchase health insurance
3products sold in other states by carriers not otherwise subject
4to Pennsylvania insurance laws and regulations.

5(b)  On or before December 1, 2013, the Insurance
6Commissioner shall submit a report to the Banking and Insurance
7Committee of the Senate and the Insurance Committee of the House
8of Representatives on what changes to Pennsylvania laws and
9regulations would be necessary in order to enable Pennsylvanians
10to purchase out-of-State health insurance products. The report
11shall address at least the following:

12(1)  The mechanism by which the Insurance Commissioner can
13regulate the purchase of out-of-State health insurance products
14and the carriers offering those products in order to protect
15Pennsylvania consumers, either through multistate agreements
16with other states or a similar mechanism whereby the Insurance
17Commissioner and the other states that participate in the
18agreement delineate their respective roles and responsibilities
19for oversight, regulation and enforcement of applicable laws and
20rules and specify which state's laws and regulations apply.

21(2)  The responsibilities of out-of-State carriers with
22regard to informing Pennsylvania consumers about the impact of
23purchasing a health insurance product that is regulated by the
24laws of another state, including information about whether
25coverages that are mandated by Pennsylvania law are included in
26the out-of-State product, whether Pennsylvania laws or
27restrictions on rate changes apply and whether the product is
28more or less expensive that other products regulated under
29Pennsylvania laws and rules.

30(3)  The barriers to allowing Pennsylvania consumers to

1purchase out-of-State health insurance products.

2(4)  A proposed time line for implementing changes necessary
3to enable the interstate purchase of health insurance.

4Section 2.  This act shall take effect in 60 days.