August 11, 2011 Insurance-related legislation sent to the Governor or signed. As of this date, the Governor has not yet signed all passed legislation.

Transcription

1 August 11, 2011 Insurance-related legislation sent to the Governor or signed. As of this date, the Governor has not yet signed all passed legislation. SENATE BILL 17 amends Chapter 49 of Title 16 and allows for stateregulated, non-profit distribution of MEDICAL MARIJUANA. It also clarifies that a qualifying patient who has access to medical marijuana provided a parent or legal guardian has a valid registry I.D. card. Senate Amendment 2 adds a threefifth vote requirement due to license fees and clarifies a description of debilitating medical condition emphasizing the physician s discretion. Senate Amendment 4 changes the qualifying age requirement to 18. SIGNED INTO LAW. ; EFFECTIVE JANUARY 1, SENATE BILL 30 creates a new Chapter 2 of Title 13 recognizing the LEGAL relationship of a CIVIL UNION in Delaware for eligible persons. The proposed law recognizes civil unions as legal unions between two persons of the same sex and provides for all of the SAME LEGAL RIGHTS, benefits, protections and responsibilities as married persons under Delaware law SIGNED INTO LAW ON MAY 11, 2011; EFFECTIVE ON JANUARY 1, SENATE BILL 35 amends Chapter 52 of Title 29 and complies with the new PATIENT PROTECTION & AFFORDABILITY CARE ACT PF 2010 that requires the State to provide DEPENDENT COVERAGE for eligible adults until the age of 26 beginning on July 1, Current law provides for coverage up to the age of 24. Graduating students in May, 2011who would have been removed from their parents health plan may re-enroll if they qualify. SIGNED INTO LAW ON MAY 4, 2011; EFFECTIVE MAY 11, SENATE BILL 43 amends Chapter 44 of Title 21 and modifies the procedures for TOWING OF AN ABANDONED VEHICLE from private property when police are contacted by the owner or occupant of the property. The provision allows the towing operator to obtain ownership and address information regarding the vehicle from the police so that the notice may be sent to the owner s last known address for the process of ultimate disposition of the vehicle. SIGNED INTO LAW ON JULY 13, 2011; EFFECTIVE UPON SIGNATURE. SENATE BILL 46 - amends Chapter 13 of Title 18 and makes provisions for LIFE INSURERS to better manage their long-term investment risks in the event of COMPANY INSOLVENCY. The legislation is designed to assure that regardless of economic conditions, insurers will be in a better position to honor their obligations to POLICYHOLDERS by eliminating unnecessary and costly barriers

2 and settle in a timelier manner. The bill is based on an NAIC MODEL. SIGNED INTO LAW ON MAY 19, SENATE BILL 53 amends Chapter 13 of Title 18 and provides additional INVESTMENT FLEXIBILITY to domestic insurers that are well-capitalized by increasing the aggregate investment limitations contained in Chapter 13. The legislation applies to insurers having a RISK BASED CAPITAL (RBC) level greater than 400% of the RBC authorized control level. SIGNED INTO LAW ON JUNE 23, SENATE BILL 54- amends Chapter 11 of Title 18 and is intended to require all PROPERTY & CASUALTY insurance companies doing business in Delaware to annually submit to the Department of Insurance the opinion of the appointed actuary entitled STATEMENT OF ACTUARIAL OPINION. SIGNED INTO LAW ON JUNE 23, SENATE SUBSTITUTE 1 FOR SENATE BILL 56 - amends Chapter 63 in Title 18 by adding a new section requiring insurers administering CHIP buy-in programs in other states to cause similar buy-in programs to be offered in Delaware if they should engage in specified transactions or affiliations with DELAWARE HEALTH SERVICE CORPORATIONS. Senate Amendment 1 eliminates the requirement that premiums charged in Delaware be similar to those charged in the other carrier s home state, eliminates references to the income-based premium subsidies that are found in Pennsylvania CHIP program, requires a report by the Insurance Commissioner to the Controller regarding each proceeding relating to the CHIP buy-in program and allows the Insurance Commissioner to terminate the health service corporation s obligation to participate in the program as a result of insufficient enrollment or unsustainable financial losses. SIGNED INTO LAW ON JUNE 27, 2011 SENATE BILL 83 - amends Chapter 49 of Title 10 and relates to JUDICIAL PROCEDURE, FIDUCIARY RELATIONS, INSURANCE & PROPERTY. The Act includes, but is not limited to exempting LIFE INSURANCE & ANNUITY CONTRACTS from execution process to the same extent as RETIREMENT PLAN ASSETS. SIGNED INTO LAW ON JULY 13, 2011; SECTION 5 EFFECTIVE JANUARY 1, 2010; ALL OTHER PROVISIONS EFFECTIVE AUGUST 1, SENATE BILL 93 amends Chapter 9, Title 18 and clarifies that any THIRD PARTY that contracts with AUTOCLUBS for services such as towing, are not

3 included in the definition of such under the insurance code. SIGNED INTO LAW ON AUGUST 6, 2011; EFFECTIVE UPON SIGNATURE SENATE BILL 98 amends Chapters 33 & 35 and complies with the new PATIENT & AFFORDABLE CARE ACT (PPACA) and requires that private HEALTH PLANS COVER EVIDENCE-BASED PREVENTIVE SERVICES & IMMUNIZATIONS. PPACA has recommended that vaccinations, health screenings and children s wellness visits must be covered for all new health plans starting with plan years beginning on or after September 23, The bill also provides the Delaware Insurance Department with regulatory authority over carriers with respect to immunizations. Senate Amendment 1 clarifies that the enumerated types of insurance are exempted from this legislation; TO GOVERNOR SENATE BILL 108 amends Chapter 23 of Title 19 (LABOR, WORKERS COMPENSATION) and ensures that Delaware MEDICAL PROVIDERS do not take advantage of the section of the current statute that allows for the GREATER OF CLAUSE by opening a facility across state lines to perform procedures on patients that could be performed in Delaware in order to collect higher fees. The bill preserves the original intent that allows for an INJURED WORKER to receive specialized treatment outside the state. TO GOVERNOR SENATE BILL 109 amends Chapter 19 of Title 18 and relates to the REGULATION OF SURPLUS LINES. Provisions include bringing Delaware s surplus lines law into compliance with federal requirements. The bill establishes a single-state regulatory and taxing authority, authorization for participation in an interstate cooperative compact or agreement related to the regulation of nonadmitted insurance entities and the collection, allocation and distribution of premium tax; establishes a committee to study the impact of entering into an interstate agreement; establishes the placement of surplus lines through brokers; provides for premium taxes to be paid in Delaware and exempts surplus lines from rates and form filings. TO GOVERNOR SENATE BILL amends Chapters 27, 33 & 35 and would allow patients o assign their right to receive benefits under HEALTH INSURANCE POLICIES to PHYSICIANS AND OTHER HEALTH CARE PROVIDERS; The bill incorporates the provisions of Section 7.6 of Insurance Regulation 1301; SENATE AMENDMENT 1 allows the out-of-network direct pay only to out of-network

4 providers. SIGNED INTO LAW ON JULY 13, 2011; EFFECTIVE UPON SIGNATURE SENATE BILL 137 amends Chapter 33 of Title 18 and creates a MORATORIUM on HEALTH INSURANCE PROVIDERS that charge higher cost sharing for different classification of prescription drugs. SENATE AMENDMENT 1 REMOVES THE MORATORIUM and leaves the requirement that the HEALTH CARE COMMISSION study the issue and make recommendations to the General Assembly next year; TO GOVERNOR SENATE BILL amends Chapter 25 of Title 29 and Chapter 63 of Title 18 and relates to NOT-FOR-PROFIT HEALTH CARE CONVERSIONS. The stated intent clarifies that the Act does not consider a Delaware not-for-profit healthcare entity affiliation with another not-for-profit entity to be a not-for-profit Delaware health service corporation seeking to affiliate with another not-for-profit company where both entities will retain their not-for-profit status post affiliation. The bill corrects language in the Act that on its face requires the same result for any notfor-profit entity or charity that decides to dispose of its reserves or control by charter change or otherwise even if it is not a health care-related entity and even if the change involves another not-for-profit entity. In the event of a not-for-profit conversion, the bill requires an annual financial report to the Secretary of State and disallows dissipation or improper use of the reserves or surplus of such health service corporation. PASSED HOUSE AND SENATE WITH SENATE AMENDMENT that includes that the Insurance Commissioner shall have authority over intercompany transactions pertaining to reserves and surplus following approved change of control of a health service corporation. Transactions are subject to the provision in Chapter 50 of Title 18 with strong enforcement authority. Insurance Commissioner approval of activity under this section shall be reported to the Department of Justice. SIGNED INTO LAW ON JULY 12, 2011; EFFECTIVE UPON SIGNATURE HOUSE BILL 5 amends Title 29 and enhances the FREEDOM OF INFORMATION ACT and requires the custodian of public records to grant access to a public record or deny access to a record as soon as possible, but not later than fifteen business days after receiving the request. SIGNED INTO LAW ON APRIL 15, 2011.

5 HOUSE BILL 28 amends Chapter 72 of Title 18 and enables SMALL EMPLOYER HEALTH INSURANCE CARRIERS to make stop-loss insurance coverage available to employers with more than 15 employees. The issuance of stop-loss coverage to small employers with no more than 50 employees will be prohibited as of July 1, 2011; SIGNED INTO LAW ON MAY 17, 2011; EFFECTIVE JULY 1, 2011 OR 10 DAYS AFTER ENACTMENT, WHICHEVER IS FIRST. HOUSE BILL 36 amends Chapter 26 of Title 21 and increases the Delaware DRIVER LICENSE issuance period from five to eight years and a learner s permit issuance period from 60 days to 6 months. The stated purpose is to decrease customer volume at DMV and to provide for more efficiency. SIGNED INTO LAW ON APRIL 15, 2011; EFFECTIVE 240 DAYS AFTER ENACTMENT. HOUSE BILL 76 amends Chapters 33 & 35 of Title 18 and provides for PROSTHETIC PARITY for persons who have lost limbs and requires health insurers to provide ORTHOTIC & PROSTHETIC devices at a reimbursement rate equal to the Federal reimbursement rate for the aged and disabled. HOUSE AMENDMENT 2 allows for the determination of medical necessity and clarifies that the reimbursement rate for prosthetic devices will be at least equal to federal reimbursement rates for the aged and disabled. PASSED HOUSE & SENATE; TO GOVERNOR; Representative Brady & Senator McDowell HOUSE SUBSTITUTE 1 FOR H.B. BILL 88 amends Chapter 73 of Title 6 relating to the REGULATION OF SECURITIES. The bill creates seven subchapters with substantive amendments to the Delaware Securities Act; Life & annuity products were removed from the bill. TO GOVERNOR HOUSE BILL 95 - amends Chapter 41 of Title 21 and eliminates the requirement that a person must have a SAFETY HELMIT in their possession while operating or riding on a MOTORCYCLE. The bill does not change the requirement to wear a helmet up to the age of 21. PASSED HOUSE & SENATE WITH AMENDMENT; Senate amendment clarifies that the Secretary of Safety & Homeland Security approves eyewear & helmets for motorcycles; VETOED BY THE GOVERNOR ON JULY 14, HOUSE BILL 134 amends Chapter 41 of Title 21and removes INCARCERATION as a possible sentence for less serious DRIVING OFFENSES and lowers maximum penalties for other than speeding. TO GOVERNOR

6 HOUSE BILL amends Chapter 21 of Title 21 and would allow NEW MOTOR VEHICLE DEALERS to INSPECT MOTOR VEHICLES, 5 model years old or newer and owned by that dealership. SIGNED INTO LAW ON JULY 5, 2011; EFFECTIVE UPON SIGNATURE HOUSE BILL 160 amends Chapters 33 & 35 of Title 18 and raises the age CHILDREN may be covered by their parents HEALTH INSURANCE to age 26. If the health care act passed by Congress is declared unconstitutional, the bill will have no force or effect. HOUSE AMENDMENT EXCLUDES accident-only, dental only, vision only, specified diseases, long-term care, hospital, indemnity, disability or other fixed indemnity policies; SIGNED INTO LAW ON JULY 29, 2011; EFFECTIVE UPON SIGNATURE HOUSE BILL 161 amends Chapters 33 & 35 of Title 18 and prohibits the DENIAL OF HEALTH COVERAGE to children due to PRE-EXISTING conditions. SIGNED INTO LAW ON JULY 25, 2011; EFFECTIVE UPON SIGNATURE HOUSE BILL 175 amends Chapter 7 of Title 24 and simplifies the process of calculating the COST SHARING charged to patients for CHIROPRACTIC CARE with a new effective date of January 1, 2012; SIGNED INTO LAW ON AUGUST 3, 2011; EFFECTIVE JANUARY 1, 2012