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October 26, 2007

“The biggest thing I hear from employers when I visit with them is the cost of insurance; it’s killing them. I urge you to do everything we possibly can to return competition to the insurance market in Pennsylvania.”

-- Sen. Gib Armstrong (R-Lancaster) to Acting Insurance Commissioner Joel Ario during a hearing on a proposed merger between Highmark Inc. and Independence Blue Cross.
 

HAZARDOUS SITES CLEANUP FUNDING, MCARE EXTENSION BEFORE SENATE

Measures that would fund the Hazardous Sites Cleanup Act through 2010-11 and extend the MCARE medical liability insurance program are expected to come up for a Senate vote next week.

COMMITTEE APPROVES PLAN TO FUND HAZARDOUS SITES CLEANUP ACT THROUGH 2010-11

The Senate Environmental Resources and Energy Committee, chaired by Sen. Mary Jo White (R-Venango), approved legislation Wednesday to extend funding of the Hazardous Sites Cleanup Act without raising taxes.

Senate Bill 1100, sponsored by Senate Majority Leader Dominic Pileggi (R-Delaware) and Senator White, would fund the program through 2010-11. The state Department of Environmental Protection told the Legislature in the spring that it was out of money on June 30, but then was able to free up sufficient funding through the end of year.

Said Sen. White: "I am pleased that we are moving this bill forward, and I look forward to quick consideration by the Senate. This represents the third effort by the Senate to provide the necessary funding for HSCA without raising taxes, and I urge the Governor and the House of Representatives to get on board."

(For more on Senate Bill 1100, please see In the Spotlight, below.)

ONE-YEAR EXTENSION OF MCARE APPROVED BY COMMITTEE

Legislation to extend the MCARE program, which provides a financial safety net to help Pennsylvania's health care providers cover their medical malpractice insurance costs, was approved Wednesday by the Senate Banking and Insurance Committee, chaired by Sen. Don White (R-Indiana).

The MCARE (Medical Care Availability and Reduction of Error) program is set to end Dec. 31. Senate Bill 1137, sponsored by Sen. White, extends it for one year and prepares for its eventual elimination. The five-year-old program helps physicians pay a portion of their medical malpractice insurance premiums.

Changes in the marketplace and the success of a reform package passed by the Legislature and enacted by Gov. Mark Schweiker in 2002 means Pennsylvania will likely be able to phase out the program in the foreseeable future, according to Sen. White.

Sen. White said: “MCARE has played a vital role in keeping providers in Pennsylvania, but thanks to the success of the MCARE reforms enacted in 2002, the Commonwealth’s role can be reduced and hopefully eliminated in the near future.”

(For more on Senate Bill 1137, please see Fast Facts, below.)

ACTING INSURANCE COMMISSIONER TESTIFIES ON BLUES MERGER

The Senate Banking and Insurance Committee, chaired by Sen. Don White (R-Indiana), held a public hearing Tuesday to hear testimony from Acting Insurance Commissioner Joel Ario regarding the status of the proposed merger between Highmark Inc. and Independence Blue Cross and the dominant role the companies currently hold in Pennsylvania.

The committee learned that between 2000 and 2006, health care insurance premiums rose 75.6 percent, while inflation went up 17 percent and median wages increased 13.3 percent. The acting commissioner also reported that Highmark (26.79 percent market share) and Independence Blue Cross (26.49 percent) have a combined 53 percent share of the market. He said the Department of Insurance expects to wrap up its review of the for-profit subsidiary filings by Highmark-IBC in the summer or fall of 2008.

 - Sen. White
 - Sen. Gib Armstrong (R-Lancaster)
 - Hearing

AMENDED "PENNSYLVANIA CLIMATE CHANGE ACT" APPROVED BY COMMITTEE

The Pennsylvania Climate Change Act, sponsored by Sen. Ted Erickson (R-Delaware), was approved by the Senate Environmental Resources and Energy Committee Tuesday and sent to the full Senate.

The measure, Senate Bill 266, would create a committee to advise the state on climate change issues and identify green economic opportunities in Pennsylvania.

The bill was amended by Sen. Erickson and committee chair Sen. Mary Jo White (R-Venango) to: create an advisory committee that will be appointed by the House, Senate and Governor; ensure that the climate change report and action plan examines and reflects the diversity of viewpoints on climate change; and require the state Department of Environmental Protection to utilize a third-party facilitator in working with the advisory committee.

SENATE VOTES TO VIRTUALLY ELIMINATE PHOSPHATE IN DETERGENTS

Legislation to virtually eliminate the amount of phosphate in automatic dishwashing detergents was approved by the Senate on Tuesday.

Senate Bill 1017, sponsored by Sen. Mike Brubaker (R-Lancaster), would amend the Phosphate Detergent Act to require household dishwashing cleaning agents to contain no phosphorous.  Phosphorous is destructive to fish and plant life when it makes its way into rivers and other bodies of water.  Under current law, household dishwashing cleaning agents can contain up to 8.7 percent phosphorous.  Exceptions are made for commercial and institutional dishwashing machines.

The bill does not affect the Senate GOP commitment to phase out this tax by the end of 2010.

The committee held a public hearing on Senate Bill 1100 on Sept. 24. Drafting the legislation became necessary after the House of Representatives failed to act on a previous Senate-passed funding bill in the summer. The committee approved an additional measure Oct. 16 to bolster HSCA funding. Senate Bill 1068 would require the state Department of Environmental Protection to deposit any HSCA-related fine money into the Hazardous Site Cleanup Fund.

Said Sen. Pileggi: “This crisis should have been averted by addressing HSCA in the budget. But our proposal will fully fund HSCA for four years without a tax increase, and without cutting any other state programs.”