H0489B2983A05164       MSP:DHB 12/11/07    #90             A05164
                        AMENDMENTS TO HOUSE BILL NO. 489
                                    Sponsor:  SENATOR HUGHES
                                           Printer's No. 2983

     1       Amend Title, page 1, lines 23 and 24, by striking out all of
     2    line 23 and "SAFETY AUTOMATION FUND" in line 24 and inserting
     3               Reserve Fund for Pennsylvanians (MCAP)
     4       Amend Sec. 1, page 2, line 19, by striking out "712(C)" and
     5    inserting
     6               712(c) and (d)
     7       Amend Sec. 1 (Sec. 712), page 6, by inserting between lines 
     8    22 and 23
     9       (d)  Assessments.--
    10           (1)  For calendar year 2003 and for each year thereafter,
    11       the fund shall be funded by an assessment on each
    12       participating health care provider. Assessments shall be
    13       levied by the department on or after January 1 of each year.
    14       The assessment shall be based on the prevailing primary
    15       premium for each participating health care provider and
    16       shall, in the aggregate, produce an amount sufficient to do
    17       all of the following:
    18               (i)  Reimburse the fund for the payment of reported
    19           claims which became final during the preceding claims
    20           period.
    21               (ii)  Pay expenses of the fund incurred during the
    22           preceding claims period.
    23               (iii)  Pay principal and interest on moneys
    24           transferred into the fund in accordance with section
    25           713(c).
    26               (iv)  Provide a reserve that shall be 10% of the sum
    27           of subparagraphs (i), (ii) and (iii).
    28           (2)  The department shall notify all basic insurance
    29       coverage insurers and self-insured participating health care
    30       providers of the assessment by November 1 for the succeeding
    31       calendar year.
    32           (3)  Any appeal of the assessment shall be filed with the
    33       department.
    34           (4)  For calendar year beginning January 1, 2008, the
    35       department may delay or suspend the collection of assessments
    36       until the requirements under section 752(b) are met.


     1       Amend Sec. 2, page 8, line 19, by striking out "SUBCHAPTERS"
     2    and inserting
     3               a subchapter
     4       Amend Sec. 2, page 8, lines 20 through 30; page 9, lines 1
     5    through 24, by striking out all of said lines on said pages and
     6    inserting
     7                              SUBCHAPTER E
     8              MEDICAL CARE AVAILABILITY FOR PENNSYLVANIANS
     9                          (MCAP) RESERVE FUND
    10    Section 751.  Establishment.
    11       There is established within the State Treasury a special fund
    12    to be known as the Medical Care Availability for Pennsylvanians
    13    (MCAP) Reserve Fund.
    14    Section 752.  Allocation.
    15       (a)  Annual allocation.--Money in the Medical Care
    16    Availability for Pennsylvanians (MCAP) Reserve Fund shall be
    17    allocated annually as follows:
    18           (1)  Fifty percent of the total amount in the Medical
    19       Care Availability for Pennsylvanians (MCAP) Reserve Fund
    20       shall remain in the Medical Care Availability for
    21       Pennsylvanians (MCAP) Reserve Fund for the sole purpose of
    22       reducing the unfunded liability of the fund.
    23           (2)  Fifty percent of the total amount in the Medical
    24       Care Availability for Pennsylvanians (MCAP) Reserve Fund
    25       shall be dedicated to funding the program established under
    26       subsection (b).
    27       (b)  Enactment of legislation.--No money in the Medical Care
    28    Availability for Pennsylvanians (MCAP) Reserve Fund shall be
    29    used until legislation is enacted that provides both assistance
    30    to certain small business employers in covering their low wage
    31    uninsured and access to affordable health insurance coverage for
    32    uninsured low-income adult Pennsylvanians that shall include all
    33    of the following:
    34           (1)  Subsidies and tax credits for small business health
    35       savings accounts.
    36           (2)  Subsidies and tax credits for incentives for disease
    37       management programs.
    38           (3)  Subsidies and tax credits for wellness and healthy
    39       living programs.
    40           (4)  Funding for low-income health care access to
    41       community-based health providers.
    42           (5)  Collection and disclosure of health care costs by
    43       various providers and insurers throughout the health care
    44       continuum.
    45           (6)  Implementation of cost containment measures that
    46       expand access while maintaining quality and patient safety.

    47       Amend Sec. 4 (Sec. 1112), page 17, lines 18 through 22, by
    48    striking out all of said lines and inserting
    49       (c.1)  Transfers to the Medical Care Availability for
    50    Pennsylvanians (MCAP) Reserve Fund.--If the Secretary of the

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     1    Budget makes a transfer from the account under subsection (c),
     2    the remaining funds in the account shall be transferred to the
     3    Medical Care Availability for Pennsylvanians (MCAP) Reserve
     4    Fund. If the Secretary of the Budget does not make a transfer
     5    from the account under subsection (c), all of the funds in the
     6    account shall be transferred to the Medical Care Availability
     7    for Pennsylvanians (MCAP) Reserve Fund.

     8       Amend Bill, page 18, by inserting between lines 6 and 7
     9       Section 6.1.  If the requirements of section 752(b) of the
    10    act are not satisfied by June 30, 2008, sections 711, 712(d),
    11    (e), (g), (h) and (i) of the act shall expire June 30, 2008. If
    12    these sections expire on June 30, 2008, the fund shall continue
    13    to be responsible for payment of claims against participating
    14    health care providers as of June 30, 2008, up to the fund
    15    liability limits as of June 30, 2008, to the extent the fund
    16    would have been responsible for payment of such claims if
    17    sections 711, 712(d), (e), (g), (h) and (i) of the act did not
    18    expire June 30, 2008.

    19       Amend Sec. 6.1, page 18, line 7, by striking out "6.1" and
    20    inserting
    21               6.2
    22       Amend Sec. 6.2, page 18, line 13, by striking out "6.2" and
    23    inserting
    24               6.3
    25       Amend Sec. 6.2, page 18, line 22, by striking out "6.1" and
    26    inserting
    27               6.2







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