2015 indiana legislative update: vol. 1

8/10/2019 2015 Indiana Legislative Update: Vol. 1

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Legislative Report

January 17, 2015 BOSE PUBLIC AFFAIRS GROUP INSURANCEBULLETIN XV, NUMBER 1

In This Issue

General Assembly Overview Unclaimed Life Insurance Benefits IDOI Bill Privacy: Breach of Security

HERO Plan

Dental and Optometry Service

Coverage

Use of Investigational Drugs Mental Health Drugs/Coverage

Telemedicine

ACA

Coverage of Prescription Eye Drops

Inmates and Medicaid

Prescription for an Overdose

Intervention Drug

Mental Health Drugs

Medical Malpractice

Workers Comp

No Pay, No Play

Do Not Call List

TNCs

Contact Us

111 Monument CircleSuite 2700Indianapolis, IN 46204317-684-5400www.bosepublicaffairs.com

GENERAL ASSEMBLY OVERVIEW

Governor Mike Pence delivered his third State of the State address

this week. One proposal from Pences speech that is catching

headlines is a balanced budget amendment to the Indiana

constitution. Pence also renewed calls for increased education

funding and highlighted the states record on job creation.

History was made this week as Indiana Supreme Court Chief Justice

Loretta Rush delivered the State of the Judiciary address. Rush is the

first female to serve as chief justice in Indiana. In her speech, Rush

announced plans to modernize the court system with an electronic

filing system that will save time and taxpayer dollars.

The number of bills released increased this week as the General

Assembly eclipsed the 1,000 bill mark. We still expect many more to

become public next week. House members are limited to 10 bills so a

maximum of 1000 bills is possible; however, in a long session the

Senate does not have a cap on bills. As bill lists continue to be

handed down, caucus leader priority bills are showing up at this

point.

Committee hearings picked up this week and next week the

schedules are filling up as well. The Statehouse is closed on Monday,

January 19 to honor Martin Luther King, Jr.

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session by following the Bose PublicAffairs Group on Twitter @BosePAG orvisit

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UNCLAIMED LIFE INSURANCE BENEFITS

As youll recall from last session, SEA 220 was enacted and requires

insurers to use the SSAs Death Master File (DMF) or a database as

inclusive on all in-force policies, annuity contracts and retained asset

accounts to help with the accurate administration of unclaimed

death benefits. The bill was opposed by a foreign life insurance

company.

As a result of the enactment of that legislation, the foreign company
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initiated litigation last fall against the State of Indiana, the Indiana

Department of Insurance and the Insurance Commissioner. The

lawsuit, in part, claims that the requirement to search the DMF on all

in-force policies is an interference with the right to contract.

SB 425has been introduced in an attempt to address the concerns

cited above. In particular, SB 425 will require only those companies

who engaged in asymmetrical DMF searches prior to July 1, 2015, to

perform DMF searches on all in-force policies, annuity contracts andretained asset accounts. However, if a company did not engage in

asymmetrical searches, then they only have to conduct DMF

searches on policies, annuity contracts and retained asset accounts

entered into after July 1, 2015.

The bill has been assigned to the Senate Insurance and Financial

Institutions Committee. It has not been scheduled for hearing yet.

IDOI BILL

HB 1341,authored by House Insurance Chairman Matt Lehman (R),

does the following: Corrects a conflict concerning payment of

expenses of the department of insurance (department) from the

general fund. Amends the law concerning internal audits of domestic

insurer and insurer group financial statements. Requires an insurer or

insurance group to file with the commissioner of insurance an annual

corporate governance disclosure. Specifies requirements concerning

use and disclosure of information related to the annual corporate

governance disclosure.

Removes a requirement for placement of the insurance

commissioner's (commissioner) signature on approval of a proposed

insurer. Defines "designated home state license" and provides for the

licensure for certain out of state insurance producers. Specifies a

designated home state license fee. Adds certain: (1) guarantees

made by an insurer; and (2) acquisitions or investments; to the list of

transactions between a domestic insurer and another person in an

insurance holding company system that require prior notice to the

commissioner.

Further, it repeals and replaces a section of the public adjuster law

concerning public adjuster violations and penalties. Excludes

information related to title insurance from the law concerning

electronic posting or delivery of insurance notices and documents.

Removes a requirement that a policy insure more than four

automobiles for purposes of application of the law concerning

cancellation of automobile insurance policies. Provides for issuance

of group casualty and liability insurance in certain circumstances.

Amends the definition of "small employer" to conform to federal law.

Provides for registration renewal annually on the last day of the

month of issuance, rather than on June 30 of each year, for claim

review agents and utilization review agents. Removes an annual
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reporting requirement by the police benefit fund to the department

of insurance.

This bill is scheduled to be heard next Wednesday, January 21stat

10:30 AM in the House Insurance Committee.

PRIVACY: BREACH OF SECURITY

Sen. Jim Merritt (R-Indianapolis) has introducedSB 413,which amends

IC 24-4.9 concerning the breach of the security of data that includes

the personal information of Indiana residents and that is collected

and maintained by a person other than a state agency or the

judicial or legislative department of state government.

In pertinent part, the bill specifies that the statute is not limited to

breaches of computerized data; requires a data user to post certain

information concerning the data user's privacy practices on the data

user's Internet web site; increases the amount of the civil penalty that

a court may impose in an action by the attorney general;sets forth

certain information that a data owner must include in a disclosure of

a security breach; and specifies the applicability of different

enforcement procedures available to the attorney general under the

statute.

The bill has been assigned to the Senate Homeland Security and

Transportation Committee, but has yet to receive a hearing date.

HERO PLAN

HB 1279,authored by Rep. Matt Lehman (R-Berne), establishes a

state-assisted retirement plan for private employers and employees.

This is the third year in row that legislation has been introduced

regarding a govt retirement savings option for private employers

and employees. The proposed legislation provides that a newly

created state board will oversee the plan and the manager of the

plan will be contracted out to a third party. Employers can

participate in the plan only if the employer does not offer its

employees a pension or retirement system of any kind. Sen. Greg

Walker is also expected to file a companion bill.

These bills are concerning to those businesses engaged in private

sector financial and retirement planning.

DENTAL AND OPTOMETRY SERVICECOVERAGEHB 1063,authored by Rep. Ron Bacon (R-Chandler), prohibits dental

and vision insurers and health maintenance organizations from
http://iga.in.gov/static-documents/5/2/9/c/529c8193/SB0413.01.INTR.pdfhttp://iga.in.gov/static-documents/5/2/9/c/529c8193/SB0413.01.INTR.pdfhttp://iga.in.gov/static-documents/5/2/9/c/529c8193/SB0413.01.INTR.pdfhttp://iga.in.gov/static-documents/5/8/d/5/58d51757/HB1279.01.INTR.pdfhttp://iga.in.gov/static-documents/5/8/d/5/58d51757/HB1279.01.INTR.pdfhttp://iga.in.gov/static-documents/a/8/6/e/a86e1aa7/HB1063.01.INTR.pdfhttp://iga.in.gov/static-documents/a/8/6/e/a86e1aa7/HB1063.01.INTR.pdfhttp://iga.in.gov/static-documents/a/8/6/e/a86e1aa7/HB1063.01.INTR.pdfhttp://iga.in.gov/static-documents/5/8/d/5/58d51757/HB1279.01.INTR.pdfhttp://iga.in.gov/static-documents/5/2/9/c/529c8193/SB0413.01.INTR.pdf


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requiring dentists and optometrists to accept certain payments unless

the health care services are covered services. The bill also prohibits

dentists and optometrists from charging for noncovered services an

amount that exceeds the usual and customary charges for the

services. HB 1063 has been referred to the House Insurance

Committee.

USE OF INVESTIGATIONAL DRUGS,

BIOLOGICAL PRODUCTS, ANDDEVICESHB 1065,authored by Rep. Wes Culver (R-Goshen), received an initial

hearing this week in the House Public Health Committee. HB 1065

provides that a manufacturer of an investigational drug, biological

product, or device may make the drug, biological product, or

device available to a patient who meets certain requirements. The

bill also adds to the requirements concerning experimental or

nonconventional medical treatment the authority to allow a patient

to receive an experimental or nonconventional medical treatment if

a physician determines that the patient: (1) has been diagnosed with

a terminal disease or condition; and (2) does not have comparableor satisfactory treatment options.

HB 1065 was held in committee this week for a potential vote at a

later time.

MENTAL HEALTH DRUGS ANDCOVERAGEHB 1448includes inpatient substance abuse detoxification services as

a Medicaid service. The bill also prohibits the office of Medicaid

policy and planning from requiring prior authorization for a drug thatis a non-addictive medication assistance treatment drug being

prescribed for the treatment of substance abuse. HB 1448 is authored

by Rep. Steve Davisson (R-Salem) and co-authored by House Public

Health Chairman Rep. Ed Clere (R-New Albany) and Rep. Charlie

Brown (D-Gary). HB 1448 awaits a hearing in the House Public Health

Committee.

COVERAGE OF TELEMEDICINE

SERVICESHB 1451,authored by Rep. Steve Davisson (R-Salem), includes

telemedicine services within the health care consent law. The bill

provides for coverage of telemedicine services under a policy of

accident and sickness insurance and a health maintenance

organization contract. HB 1451 is scheduled for a hearing on

Wednesday, January 21 in House Public Health at 3:30 in the House

Chamber.

APPLICATION OF FEDERAL
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AFFORDABLE CARE ACTHB 1479,assigned to the House Ways & Means Committee, prohibits

certain state actions related to enforcement or implementation of

the federal Patient Protection and Affordable Care Act (PPACA). The

bill requires the attorney general to file a civil action for injunctive

relief in certain circumstances and also requires a tax deduction for

taxpayers paying a penalty in relation to PPACA. HB 1479 repeals a

provision concerning application for a state innovation waiver under

PPACA. The bill is authored by Rep. Tim Harman (R-Bourbon) and co-authored by Rep. Curt Nisly (R) and Rep. Ben Smaltz (R-Auburn).

COVERAGE OF PRESCRIPTION EYEDROPSSB 26,authored by Sen. Pat Mille r (R-Indianapolis), requires that

certain state employee health plans, policies of accident and

sickness insurance, and health maintenance organization contracts

must cover refills and additional units of prescription eye drops under

specified conditions. This bill came as a result of the interimcommittee on public health, behavioral health, and human services.

SB 26 is estimated to increase state expenditures between $51,000

and $131,000 during CY 2016. This increase is attributable to (1)

additional expenditures between $50,000 and $80,000 for changes to

the state employee health plan and (2) additional expenditures of

$51,000 to financing state-mandated coverage for prescription eye

drops under the federal Affordable Care Act (ACA).

SB 26 is scheduled for a hearing on Wednesday, January 21 in Senate

Health & Provider Services at 9:00 am in Room 431.

INMATES AND MEDICAIDIn an effort to address the cost of inmate healthcare, Sen. Pat Miller

(R-Indianapolis) has introducedSB 212.This bill makes the

Department of Correction (DOC) an inmate's authorized

representative for applying for Medicaid for inmates who are

potentially eligible for Medicaid and who incur medical care

expenses that are not otherwise reimbursable. The bill requires the

DOC and the Office of the Secretary of Family and Social Services

(FSSA) to enter into an agreement in which the DOC pays the state

share of the Medicaid costs incurred for the inmate.

The bill also allows a sheriff to apply on behalf of a lawfully detainedindividual for Medicaid and act as the person's Medicaid

representative if the sheriff enters into an agreement with the FSSA to

pay the state share of the Medicaid costs incurred for the person.

SB 212 is scheduled for a hearing on Tuesday, January 20 in the

Senate Corrections & Criminal Law Committee.

PRESCRIPTION FOR AN OVERDOSE

INTERVENTION DRUG
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SB 406allows specified health care professionals with prescriptive

authority to dispense or write a prescription for an overdose

intervention drug without examining the individual to whom it may be

administered if specified conditions are met. The bill allows for an

individual who is a family member, friend, or other individual in a

position to assist another individual who, there is reason to believe, is

at risk of experiencing an opioid-related overdose, to obtain and

administer an overdose intervention drug if certain conditions are

met. It also provides for civil and criminal immunity. Sen. Jim Merritt (R-

Indianapolis) is the author of SB 406.

MENTAL HEALTH DRUGSSen. Pat Miller (R-Indianapolis) has authoredSB 464which contains

the following provisions:

- Use of Long Acting, Nonaddictive Medication in Community

SupervisionIt provides that addictions counseling, inpatient

detoxification, and long acting, nonaddictive medication

may be required to treat opioid or alcohol addiction as a

condition of parole, probation, community corrections,

pretrial diversion, or participation in a problem solving court.

- Expansion of Medicaid Eligibility for Certain MedicationsIt

includes inpatient substance abuse detoxification services as

a Medicaid service. It prohibits the office of Medicaid policy

and planning (office) from requiring prior authorization for a

drug that is a nonaddictive medication assistance treatment

drug being prescribed for the treatment of substance abuse.

It requires the office to include coverage for addictive

medication assistance treatment drugs being prescribed for

substance abuse treatment but allows for prior authorization.

It requires coverage under the Indiana check-up plan of

nonaddictive and addictive medication assistance treatment

drugs prescribed for the treatment of substance abuse.

-

Certified Community Mental Health CentersIt authorizes

applications for a new opioid treatment program run by a

certified community mental health center.

- Repeal of DOC RequirementIt repeals the requirement that

the Department of Correction estimate, prior to March 1,

2015, the amount of any operational savings that will be

realized in FY 2015 from a reduction in the number of

individuals who are in the custody or made a ward of DOC.

MEDICAL MALPRACTICETwo bills dealing with medical malpractice have been filed this year:SB 55,authored by Sen. Brent Steele (R-Bedford), andHB 1043,

authored by Rep. Jerry Torr (R-Carmel). As introduced, each bill varies

in detail.

SB 55 permits a patient to bring an action against a health care

provider without submitting the complaint to the medical review

board if the amount of the claim is not more than $187,000. (Under

current law, a patient may bring a direct action only if the amount is

not more than $15,000.)
http://iga.in.gov/static-documents/4/b/9/f/4b9fb937/SB0406.01.INTR.pdfhttp://iga.in.gov/static-documents/4/b/9/f/4b9fb937/SB0406.01.INTR.pdfhttp://iga.in.gov/static-documents/8/a/9/4/8a9411b8/SB0464.01.INTR.pdfhttp://iga.in.gov/static-documents/8/a/9/4/8a9411b8/SB0464.01.INTR.pdfhttp://iga.in.gov/static-documents/8/a/9/4/8a9411b8/SB0464.01.INTR.pdfhttp://iga.in.gov/static-documents/a/5/6/c/a56c7895/SB0055.01.INTR.pdfhttp://iga.in.gov/static-documents/a/5/6/c/a56c7895/SB0055.01.INTR.pdfhttp://iga.in.gov/static-documents/6/1/b/2/61b2a64b/HB1043.01.INTR.pdfhttp://iga.in.gov/static-documents/6/1/b/2/61b2a64b/HB1043.01.INTR.pdfhttp://iga.in.gov/static-documents/6/1/b/2/61b2a64b/HB1043.01.INTR.pdfhttp://iga.in.gov/static-documents/6/1/b/2/61b2a64b/HB1043.01.INTR.pdfhttp://iga.in.gov/static-documents/a/5/6/c/a56c7895/SB0055.01.INTR.pdfhttp://iga.in.gov/static-documents/8/a/9/4/8a9411b8/SB0464.01.INTR.pdfhttp://iga.in.gov/static-documents/4/b/9/f/4b9fb937/SB0406.01.INTR.pdf


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Trent Hahn

[email protected]

Telephone: 317/684-5400

Fax: 317/684-5432

2015 indiana legislative update: vol. 1

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