DISTRICT OF COLUMBIA Health Insurance : The District Council is considering extending its legislative session past its normal July 14 recess date
due to the recent announcement by the chief financial officer that the
expected 2009 fiscal year revenue is now projected to be $190 million
less than was estimated in February. This development will force the
Council to borrow from the $1.4 billion rainy day fund in order to
balance the budget as required by law.
The Council passed an amendment to the Health Occupations Revision Act that included a definition of "the practice of medicine."
As passed, the provision does not contain language opposed by the
health insurance industry that would have arguably included utilization
review. Also deemed approved was a rule permitting those enrolled in
the District's Employee Benefits Program to enroll a domestic partner
and children of the domestic partner under family coverage, provided
the employee pays 25 percent of the premium.
NEW
JERSEY Health Insurance : The legislature passed the state budget with supplementary
legislation calling for a .35 percent premium tax increase on group
accident and health insurance policies, and a 2 percent
increase on surplus lines, effectively increasing the tax to 1.35
percent and 5 percent respectively. Both are a part of the state's
overall $1 billion in tax increases for the new fiscal year and include
a one-year sunset provision. An autism coverage mandate is on its way to Governor Corzine's desk for his signature. The Senate also gave final approval to legislation requiring installment payments for maternity services.
This bill calls for the Department of Banking & Insurance to
develop a mechanism to provide incremental payments for prenatal
services. The immediate effective date was postponed for one year. The
legislature is now in recess and is unlikely to return until after the
November election.
NORTH
CAROLINA Health Insurance : Discussion continues regarding the proposal to increase
premium taxes across all lines of insurance from 1.9 percent to 2.25
percent effective January 1, 2011. Several trade
organizations, including America's Health Insurance Plans and the North
Carolina Association of Health Plans, are working on letters to key
legislators in opposition to the tax. Aetna is also working on similar
communications and is urging customers to get involved.
OHIO Health Insurance :
Despite the June 30 deadline for passing the state's biennial budget,
Governor Strickland and the General Assembly remain at a stalemate.
The Senate President has rescheduled meetings of the joint conference
committee several times as he and the governor spar over whether the
decision to permit video terminals at racetracks should be legislated
or put to a ballot vote. Faced with a $3.2 billion budget shortfall,
allowing an expansion of gambling is projected to decrease the deficit
by $933 million. In the meantime, Governor Strickland signed an interim
seven-day budget that sets funding for a number of agencies at 30
percent less than they received in 2008. This is the first time in 18
years that Ohio has had an interim budget.
The
House Civil and Commercial Law Committee passed a bill prohibiting a
material amendment to a provider contract from becoming effective
absent the affirmative consent of both parties. This was an expected result in the Democratically controlled House. Efforts to defeat the bill will be focused on the Senate.
OKLAHOMA Health Insurance : The following interim studies were recently approved to go forward by legislative leadership:
a study concerning systematic health education in the schools, health
care access for primary care in schools (Community School Initiative)
and care coordination to facilitate access to health care in the
community; a study regarding how the State of Oklahoma buys benefits
for their employees and dependents (state-run versus private carriers
and private TPA-run insurance programs and pension plans); a study
regarding the subject of insurance companies rescinding and canceling
citizens' health insurance policies for arbitrary reasons; and a study
considering issues relating to interstate purchasing of health
insurance policies.
OREGON Health Insurance :
Governor Kulongoski signed comprehensive health care reform legislation
this week that establishes a Health Policy Board to serve as the policy
making and oversight body for the newly created Oregon Health Authority.
The Board is charged with a number of duties including the development
of a universal coverage proposal, quality and cost containment
programs, premium assistance and a statewide Health Insurance Exchange.
The Authority will take on the responsibility for the Exchange,
including the development of rules and base-line benefit packages for
the plans offered within the Exchange. The Authority will also develop
uniform contracting standards and claim processing, a framework for
rate filings, MCR standards, the use of medical homes, quality data
reporting and dissemination and the use comparative effective research.
The Governor is also expected to sign a new funding mechanism that would institute a temporary 1 percent premium tax, higher hospital fees and assessments, new corporate tax rates to pay for the reform proposal and expand coverage for low-income families and children.
HB2, which will take the Texas Department of Insurance out of "wind
down" mode and continue the agency's existence until it can be reviewed
on a limited basis by the Sunset Commission during the 2011 legislative
session, was passed by the House on July 2 and by the Senate on July 3.
The legislature then quickly adjourned in time to enjoy the July 4
holiday. TDI will now immediately b
