Advocacy

Issues

Pennsylvania House Passes Controversial Health Insurance Expansion

The Pennsylvania House of Representatives passed legislation last week that would expand health insurance coverage to 270,000 uninsured Pennsylvanians. Senate Bill 1137, which would establish the Pennsylvania Access to Basic Care (ABC) Program, passed the House on a 118-81 vote. Costs for the ABC Program are expected to reach $1.1 billion by 2012-13. Funding sources under the plan are premiums, federal Medicaid dollars, tobacco settlement money and the state-run medical malpractice insurance fund. The House of Representatives passed this legislation with little study of the implications for the private health insurance market. NAIFA-Pennsylvania is currently working with our Harrisburg lobbyist Greenlee Partners, the Insurance Federation of Pennsylvania and the Pennsylvania Association of Health Underwriters (PAHU) to develop a lobbying strategy in the Senate. Stay tuned for further information. For more information on this legislation, click here.

Sales Tax on Services

There are at least three separate proposals to raise Pennsylvania's sales taxes that are currently being considered. Some of these proposals, at various times, have included provisions increasing the rate of sales tax and extending the sales tax into new areas. Among those areas being considered are professional services, including insurance and financial planning. Michigan recently enacted a 6 percent sales tax on investment advice. This tax was included in a plan to tax 20 previously untaxed services, ranging from lawn care to psychic readings.

NAIFA-Pennsylvania's message to legislators is that investment and insurance advice and brokerage commissions should not be part of any extension of the sales tax. The insurance industry is already taxed through the gross premiums tax and extending the sales tax to these services would amount to double taxation and impede access to valuable consumer services.

Health Insurance

Governor Rendell has advocated for universal health care in Pennsylvania. So far the following initiatives have been put into place:

Chronic Care Management Commission, established by Executive Order 2007-05, responsible for developing a process to manage chronic disease across Pennsylvania. First example: PA Diabetes Action Partnership.

Office of Health Equity in Department of Health, established by Executive Order 2007-04. Charged with eliminating disparities in health care access and quality based on factors such as race, gender, geographic location and income, especially those relating to incidence and mortality from chronic diseases.

Health Care Acquired Infections, Act 52 of 2007, requires hospitals to implement plans to control hospital-acquired infections.

Scope of Medical Practice, Acts 46, 47 and 48 of 2007, expands role of nurse specialists, midwives and dental hygienists in providing routine care.

Children's Health Insurance (CHIP), expanded through administrative action, makes all uninsured children and teens eligible for medical coverage. Called into question by President Bush's veto of legislation authorizing the expansion.

NAIFA-Pennsylvania's message to legislators is to move slowly on health care reform. A tax on business to pay for the expansion may do serious damage to Pennsylvania's economy, especially small business. Instead, Pennsylvania should adopt an incremental approach and look to close gaps and save costs in a number of areas. These might include stricter enforcement of seat belt and child-safety seat laws, reinstituting the motorcycle helmet law and other cost-saving reforms.