bpag insurance bulletin 1-23-15

8/9/2019 BPAG Insurance Bulletin 1-23-15

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Legislative Report January 23, 2015 BOSE PUBLIC AFFAIRS GROUP INSURANCEBULLETIN XV, NUMBER 2

In This Issue General Assembly Overview Unclaimed Life Insurance Benefits IDOI Bill Privacy: Breach of Security HERO Plans Dental and Optometry Service

Coverage

Use of Investigational Drugs Telemedicine ACA Coverage of Prescription Eye Drops Inmates and Medicaid Mental Health Drugs Medical Malpractice Workers Comp No Pay, No Play Do Not Call List TNCs

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

GENERAL ASSEMBLY OVERVIEWThis week at the Statehouse, a number of bill lists were handed downin the House and Senate giving a total bill count thus far of 570 in theSenate and 667 in the House. We have seen a number of caucus billsintroduced, typically bills that are lower in number. At this point, thelarge majority of bills have been released.

One such caucus bill is SB 1 dealing with the State Board ofEducation. Included in SB 1 is language which provides that the StateBoard of Education members shall elect a chairperson annuallywithin the members of the board. This departs from the current lawwhich provides that the Superintendent of Public Instruction serves asboard chair. SB 1 is just one of over 100 education-related bills filedthis session, demonstrating the continued activity in the educationarena.

HB 1002 is the much-anticipated ethics legislation this session. In thewake of a few headline-grabbing ethical issues, legislative leadersvowed to address ethics concerns this year. The bill addresses keylegislative ethics such as statements of economic interest, post-

employment restrictions and waivers, and the use of state materialsand equipment.

The alcohol debate dealing with Sunday Sales is heating up this year.A coordinated effort on behalf of retail stores, known as Hoosiers forSunday Sales, is advocating to repeal the ban on Sunday Sales ofalcohol products at retail stores. Twelve states have laws that prohibitthe sale of alcohol at retail stores on Sunday. HB 1026, introduced byRep. Sean Eberhart (R-Shelbyville), provides that a holder of analcoholic beverage permit who is authorized by law to sell alcoholicbeverages for carryout may sell alcoholic beverages for carryout onSunday. A competing bill has been filed by the House Public Policy

Chairman, Rep. Tom Dermody (R-LaPorte). Rep. Dermody's bill, HB1624, provides that a holder of an alcoholic beverage permit who isauthorized by law to sell alcoholic beverages for carryout may sellalcoholic beverages for carryout on Sunday from 10 a.m., prevailinglocal time, until 6 p.m., prevailing local time.

Next week, committee hearings will be abundant. As committeereports are adopted in the House and Senate, we will also see anincrease in Second Reading amendments for bills on the House andSenate floor calendar.


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UNCLAIMED LIFE INSURANCE BENEFITSSB 425 will require only those companies who engaged inasymmetrical DMF searches prior to July 1, 2015, to perform DMFsearches on all in-force policies, annuity contracts and retained assetaccounts. However, if a company did not engage in asymmetricalsearches, then they only have to conduct DMF searches on policies,annuity contracts and retained asset accounts entered into after July1, 2015. It also removes the fuzzy match requirement.

The bill is going to be heard on Thursday, February 5 th at 9:00am, inthe Senate Insurance and Financial Institutions Committee.

IDOI BILL

HB 1341 , authored by House Insurance Chairman Matt Lehman (R),does the following: Corrects a conflict concerning payment ofexpenses of the department of insurance (department) from thegeneral fund. Amends the law concerning internal audits of domesticinsurer and insurer group financial statements. Requires an insurer orinsurance group to file with the commissioner of insurance an annualcorporate governance disclosure. Specifies requirements concerninguse and disclosure of information related to the annual corporategovernance disclosure.

Removes a requirement for placement of the insurance

commissioner's (commissioner) signature on approval of a proposedinsurer. Defines "designated home state license" and provides for thelicensure for certain out of state insurance producers. Specifies adesignated home state license fee. Adds certain: (1) guaranteesmade by an insurer; and (2) acquisitions or investments; to the list oftransactions between a domestic insurer and another person in aninsurance holding company system that require prior notice to thecommissioner.

Further, it repeals and replaces a section of the public adjuster lawconcerning public adjuster violations and penalties. Excludes

information related to title insurance from the law concerningelectronic posting or delivery of insurance notices and documents.Removes a requirement that a policy insure more than fourautomobiles for purposes of application of the law concerningcancellation of automobile insurance policies. Provides for issuanceof 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 themonth of issuance, rather than on June 30 of each year, for claimreview agents and utilization review agents. Removes an annualreporting requirement by the police benefit fund to the department
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of insurance.

The bill was heard on Wednesday in the House Insurance Committee.An amendment was adopted to clarify language with respect toseveral new group products (members of the armed forces; non-trucking liability; and tenant users liability). The Chairman held the billto work on issues regarding the Corporate Governance AnnualDisclosure section of the bill. It is scheduled to be heard again next

Wednesday, January 28 th at 10:30am.

PRIVACY: BREACH OF SECURITY Sen. Jim Merritt (R-Indianapolis) has introduced SB 413, which amendsIC 24-4.9 concerning the breach of the security of data that includesthe personal information of Indiana residents and that is collectedand 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 tobreaches of computerized data; requires a data user to post certaininformation concerning the data user's privacy practices on the datauser's Internet web site; increases the amount of the civil penalty thata court may impose in an action by the attorney general; s ets forthcertain information that a data owner must include in a disclosure ofa security breach; and specifies the applicability of differentenforcement procedures available to the attorney general under thestatute.

The bill has been assigned to the Senate Homeland Security andTransportation Committee, but has yet to receive a hearing date.

HERO PLAN

HB 1279 , authored by Rep. Matt Lehman (R-Berne), establishes astate-assisted retirement plan for private employers and employees.Provides that a newly created state board will oversee the plan andthe 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 has filed SB 555, a companion to HB 1279.

Rep. Lehman and Sen. Walker have indicated that they are notgoing to move forward with the bills as drafted. Instead, they areconsidering creating a website portal to serve as a connector forproviders and consumers. Discussions continue as to the directionand substance of a website portal concept.
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DENTAL AND OPTOMETRY SERVICECOVERAGEHB 1063 , authored by Rep. Ron Bacon (R-Chandler), prohibits dentaland vision insurers and health maintenance organizations fromrequiring dentists and optometrists to accept certain payments unlessthe health care services are covered services. The bill also prohibits

dentists and optometrists from charging for noncovered services anamount that exceeds the usual and customary charges for theservices. HB 1063 has been referred to the House InsuranceCommittee, but has not yet been scheduled for a hearing.

USE OF INVESTIGATIONAL DRUGS,BIOLOGICAL PRODUCTS, ANDDEVICESHB 1065 , authored by Rep. Wes Culver (R-Goshen), received an initialhearing this week in the House Public Health Committee. HB 1065provides that a manufacturer of an investigational drug, biologicalproduct, or device may make the drug, biological product, ordevice available to a patient who meets certain requirements. Thebill also adds to the requirements concerning experimental ornonconventional medical treatment the authority to allow a patientto receive an experimental or nonconventional medical treatment ifa physician determines that the patient: (1) has been diagnosed witha terminal disease or condition; and (2) does not have comparableor satisfactory treatment options.

HB 1065 is being heard on Wednesday, January 28 th in the HousePublic Health Committee for amendment and vote only.

COVERAGE OF TELEMEDICINESERVICESHB 1451 , authored by Rep. Steve Davisson (R-Salem), includestelemedicine services within the health care consent law. The billprovides for coverage of telemedicine services under a policy ofaccident and sickness insurance and a health maintenanceorganization contract. HB 1451 was heard this week in House PublicHealth. After extensive testimony, the bill was held in committee forfurther discussion.

APPLICATION OF FEDERALAFFORDABLE CARE ACTHB 1479 , assigned to the House Ways & Means Committee, prohibitscertain state actions related to enforcement or implementation ofthe federal Patient Protection and Affordable Care Act (PPACA). Thebill requires the attorney general to file a civil action for injunctiverelief in certain circumstances and also requires a tax deduction fortaxpayers paying a penalty in relation to PPACA. HB 1479 repeals aprovision concerning application for a state innovation waiver underPPACA. The bill is authored by Rep. Tim Harman (R-Bourbon) and co-
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authored by Rep. Curt Nisly (R) and Rep. Ben Smaltz (R-Auburn). Thebill has been referred to Ways and Means.

COVERAGE OF PRESCRIPTION EYEDROPSSB 26, authored by Sen. Pat Mille r (R-Indianapolis), was heard in theSenate Health & Provider Services Committee this week where the billwas amended and approved by the committee by a vote of 8-0. Thebill now requires that beginning January 1, 2016, certain stateemployee health plans, policies of accident and sickness insurance,and health maintenance organization contracts must cover refillsand additional units of prescription eye drops under specifiedconditions. This bill came as a result of the interim committee onpublic health, behavioral health, and human services.

SB 26 is estimated to increase state expenditures between $51,000and $131,000 during CY 2016. This increase is attributable to (1)additional expenditures between $50,000 and $80,000 for changes tothe state employee health plan and (2) additional expenditures of$51,000 to financing state-mandated coverage for prescription eyedrops under the federal Affordable Care Act (ACA).

SB 26 will be up for second reading amendment and third readingvote next week.

INMATES AND MEDICAIDIn an effort to address the cost of inmate healthcare, Sen. Pat Miller(R-Indianapolis) has introduced SB 212. SB 212 was approved by theSenate Corrections & Criminal Law Committee this week by a vote of8-0. This bill makes the Department of Correction (DOC) an inmate'sauthorized representative for applying for Medicaid for inmates whoare potentially eligible for Medicaid and who incur medical careexpenses that are not otherwise reimbursable. The bill requires theDOC and the Office of the Secretary of Family and Social Services(FSSA) to enter into an agreement in which the DOC pays the stateshare 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 Medicaidrepresentative if the sheriff enters into an agreement with the FSSA topay the state share of the Medicaid costs incurred for the person.

SB 212 will be up for second reading amendment and third reading

vote next week.

MENTAL HEALTH DRUGSSen. Pat Miller (R-Indianapolis) has authored SB 464 which containsthe following provisions below. SB 464 is scheduled for a hearing onJanuary 28 in the Senate Health & Provider Services Committee.

- Use of Long Acting, Nonaddictive Medication in CommunitySupervision It provides that addictions counseling, inpatientdetoxification, and long acting, nonaddictive medication
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may be required to treat opioid or alcohol addiction as acondition of parole, probation, community corrections,pretrial diversion, or participation in a problem solving court.

- Expansion of Medicaid Eligibility for Certain Medications Itincludes inpatient substance abuse detoxification services asa Medicaid service. It prohibits the office of Medicaid policyand planning (office) from requiring prior authorization for adrug that is a nonaddictive medication assistance treatmentdrug being prescribed for the treatment of substance abuse.It requires the office to include coverage for addictivemedication assistance treatment drugs being prescribed forsubstance abuse treatment but allows for prior authorization.It requires coverage under the Indiana check-up plan ofnonaddictive and addictive medication assistance treatmentdrugs prescribed for the treatment of substance abuse.

- Certified Community Mental Health Centers It authorizesapplications for a new opioid treatment program run by acertified community mental health center.

- Repeal of DOC Requirement It repeals the requirement thatthe Department of Correction estimate, prior to March 1,

2015, the amount of any operational savings that will berealized in FY 2015 from a reduction in the number ofindividuals 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), and HB 1043 , authored by Rep. Jerry Torr (R-Carmel). As introduced, each bill variesin detail.

SB 55 was heard on Wednesday in Senate Judiciary. The bill passedout of committee (8-1) with an amendment which permits a patientto bring an action against a health care provider without submittingthe complaint to the medical review board if the amount of theclaim is not more than $50,000. (Under current law, a patient maybring a direct action only if the amount is not more than $15,000.)

HB 1043 increases the medical malpractice cap from $1,250,000 to$1,650,000 for claims arising after June 30, 2015 and increases themaximum amount of liability for a health care provider or a healthcare provider's insurer from $250,000 to $300,000. This bill has yet tobe scheduled for a hearing.

WORKERS COMPENSATION SB 33 deals with workers compensation and ambulatory servicecenters (ASC). The bill as drafted by Sen. Phil Boots (R-Crawfordsville)adds an ambulatory outpatient surgical center to the definition of"medical service facility" under the worker's compensation law. Thebill passed unanimously out of Committee on Wednesday with anamendment that limits the reimbursement for implants to cost plus25%. The bill now moves to the full Senate for consideration.
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NO PAY, NO PLAYHB 1192 , authored by Rep. Kevin Mahan (R-Hartford City), providesthat an uninsured motorist is not entitled to collect non-economicdamages when involved in a motor vehicle accident. The bill hasbeen assigned to the House Insurance Committee. It is expected toreceive a hearing next week.

REMOVAL OF EXEMPTIONS FROM "DONOT CALL" LAW Sen. Mike Delph (R-Carmel), has filed SB 227 which removes existingexemptions from the statute governing telephone solicitations ofconsumers (Indiana's "do not call" list) for calls made by, in pertinentpart, Licensed insurance producers and surplus lines producers. Thebill has been assigned to the Senate Committee on Commerce andTechnology, but has not been scheduled for a hearing yet.

TRANSPORTATION NETWORKCOMPANIESSen. Carlin Yoder has filed SB 347, which requires TNCs (e.g., Uber) toobtain a permit issued by INDOT in order to operate in Indiana. Thebill establishes numerous requirements necessary for a TNC to obtaina permit, including insurance requirements. The bill is scheduled tobe heard in Senate Homeland Security & Transportation on Tuesday,January 27 th at 10am.

Rep. Matt Lehman has filed a competing bill, HB 1278, which limits itsapplication to specific insurance requirements for TNC s and TNCdrivers. The bill is scheduled to be heard on Wednesday, January 28 that 10am in the House Roads and Transportation Committee.

For more informationTrent Hahn

[email protected]

Telephone: 317/684-5400

Fax: 317/684-5432
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