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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY GOODMAN, BELFANTI, BISHOP, BRENNAN, CARROLL, DeLUCA, DONATUCCI, GEIST, GEORGE, HALUSKA, HESS, JOSEPHS, KORTZ, MAHONEY, MILLER, M. O'BRIEN, READSHAW, SIPTROTH, STABACK, STURLA, VULAKOVICH, WHEATLEY AND WHITE, MARCH 19, 2009 |
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| REFERRED TO COMMITTEE ON INSURANCE, MARCH 19, 2009 |
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| AN ACT |
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1 | Amending the act of May 17, 1921 (P.L.682, No.284), entitled "An |
2 | act relating to insurance; amending, revising, and |
3 | consolidating the law providing for the incorporation of |
4 | insurance companies, and the regulation, supervision, and |
5 | protection of home and foreign insurance companies, Lloyds |
6 | associations, reciprocal and inter-insurance exchanges, and |
7 | fire insurance rating bureaus, and the regulation and |
8 | supervision of insurance carried by such companies, |
9 | associations, and exchanges, including insurance carried by |
10 | the State Workmen's Insurance Fund; providing penalties; and |
11 | repealing existing laws," providing for notice of termination |
12 | of health insurance coverage. |
13 | The General Assembly of the Commonwealth of Pennsylvania |
14 | hereby enacts as follows: |
15 | Section 1. The act of May 17, 1921 (P.L.682, No.284), known |
16 | as The Insurance Company Law of 1921, is amended by adding a |
17 | section to read: |
18 | Section 635.4. Notice of Termination.--(a) Within ninety |
19 | (90) days of an employer's decision to terminate coverage of |
20 | employes under a health insurance policy, the employer shall |
21 | notify the insurer in writing of the decision. The insurer shall |
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1 | provide written notice of the employer's decision to insureds |
2 | within ten (10) days of the date of notification. If an employer |
3 | fails to notify an insurer under this subsection, an insurer |
4 | shall provide written notice to insureds of the employer's |
5 | decision within ten (10) days of the date of termination of |
6 | coverage. |
7 | (b) An employer shall provide written notification of the |
8 | employer's decision to terminate coverage of employes under a |
9 | health insurance policy to the affected employes ninety (90) |
10 | days or more in advance of the effective date of the termination |
11 | of coverage. |
12 | (c) An employer that fails to comply with the notification |
13 | provisions of this section shall be responsible for payment of |
14 | any costs of medical care that would have been covered under a |
15 | terminated health insurance policy incurred by an employe during |
16 | the ninety (90) day period following the date of termination of |
17 | coverage. |
18 | (d) This section shall apply to any health insurance policy |
19 | offered, issued or renewed on or after the effective date of |
20 | this subsection. |
21 | (e) This section shall not apply to the following types of |
22 | policies: |
23 | (1) Accident only. |
24 | (2) Fixed indemnity. |
25 | (3) Limited benefit. |
26 | (4) Credit. |
27 | (5) Dental. |
28 | (6) Vision. |
29 | (7) Specified disease. |
30 | (8) Medicare supplement. |
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1 | (9) Civilian Health and Medical Program of the Uniformed |
2 | Services (CHAMPUS) supplement. |
3 | (10) Long-term care or disability income. |
4 | (11) Workers' compensation. |
5 | (12) Automobile medical payment. |
6 | (f) As used in this section: |
7 | "Health insurance policy" means any individual or group |
8 | health, sickness or accident policy, subscriber contract, |
9 | certificate or plan issued by an entity subject to one of the |
10 | following: |
11 | (1) This act. |
12 | (2) The act of December 29, 1972 (P.L.1701, No.364), known |
13 | as the "Health Maintenance Organization Act." |
14 | (3) The act of May 18, 1976 (P.L.123, No.54), known as the |
15 | "Individual Accident and Sickness Insurance Minimum Standards |
16 | Act." |
17 | (4) 40 Pa.C.S. Ch. 61 (relating to hospital plan |
18 | corporations) or 63 (relating to professional health services |
19 | plan corporations). |
20 | "Insurer" means any entity that issues a health insurance |
21 | policy. |
22 | Section 2. This act shall take effect in 60 days. |
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