PRINTER'S NO. 829
No. 738 Session of 2005
INTRODUCED BY BOYD, TURZAI, YOUNGBLOOD, GODSHALL, SCAVELLO, MUSTIO, TRUE, SCHRODER, BARRAR, KILLION, LEH, ROHRER, BENNINGHOFF, HUTCHINSON, CRAHALLA, PICKETT, REED, HESS, BALDWIN, DALLY, M. KELLER, THOMAS, GILLESPIE, WHEATLEY, O'NEILL AND KAUFFMAN, MARCH 1, 2005
REFERRED TO COMMITTEE ON INSURANCE, MARCH 1, 2005
AN ACT 1 Imposing a moratorium on enactment of new or expanded health 2 insurance policy mandated benefits and to require the 3 Legislative Budget and Finance Committee to study the issue 4 of health insurance mandates and report to the General 5 Assembly. 6 The General Assembly of the Commonwealth of Pennsylvania 7 hereby enacts as follows: 8 Section 1. Short title. 9 This act shall be known and may be cited as the Mandated 10 Benefit Moratorium Act. 11 Section 2. Definitions. 12 The following words and phrases when used in this act shall 13 have the meanings given to them in this section unless the 14 context clearly indicates otherwise: 15 "Health insurance policy." An individual or group health, 16 sickness or accident policy, subscriber contract or certificate 17 issued by an entity subject to any of the following: 18 (1) The act of May 17, 1921 (P.L.682, No.284), known as
1 The Insurance Company Law of 1921. 2 (2) The act of December 29, 1972 (P.L.1701, No.364), 3 known as the Health Maintenance Organization Act. 4 (3) 40 Pa.C.S. Ch. 61 (relating to hospital plan 5 corporations) or 63 (relating to professional health services 6 plan corporations). 7 "Insurer." A foreign or domestic entity that issues a health 8 insurance policy in this Commonwealth. 9 Section 3. Mandated benefit moratorium. 10 (a) General rule.--Notwithstanding any other provision of 11 law to the contrary, pending submission to the General Assembly 12 of the study required by section 4 (relating to study of 13 existing mandated benefits), a moratorium is hereby established 14 during which the General Assembly shall not enact any new or 15 expanded health insurance policy mandated benefit. 16 (b) Construction.--Nothing in this act shall be construed 17 to: 18 (1) Prohibit an employer or insurer from electing to 19 provide new or expanded coverage under a health insurance 20 policy. 21 (2) Prohibit changes in any coverage requirements to 22 comply with Federal law. 23 Section 4. Study of existing mandated benefits. 24 The Legislative Budget and Finance Committee shall study the 25 issue of health insurance policy mandated benefits and the cost 26 to employers and individuals of health insurance policy 27 mandates. In conducting the study, the Legislative Budget and 28 Finance Committee shall consider cost-benefit analyses to 29 determine the cost-effectiveness of mandated benefits. At a 30 minimum, the committee shall inquire into and make 20050H0738B0829 - 2 -
1 recommendations with respect to: 2 (1) Each and every federally mandated and State-mandated 3 health benefit placed upon issuers in Pennsylvania since 4 1990. 5 (2) The impact of each such mandated health benefit on 6 the premiums for health insurance policy coverage in this 7 Commonwealth. 8 (3) The social, financial and medical efficacy of each 9 such mandated health benefit. 10 The committee shall submit a final report with recommendations 11 to the General Assembly no later than December 31, 2006, and 12 shall publish notice of the final report in the Pennsylvania 13 Bulletin within 30 days of the submission of the final report. 14 Section 5. Effective date. 15 This act shall take effect immediately. A20L71JS/20050H0738B0829 - 3 -