

	April 4, 2008	Rxforpa.com \| PA.gov

Reforms Aimed at Helping Small Businesses One Step Closer
The Pennsylvania House of Representatives this week passed important legislation that aims to reform how insurance rates are set for individuals and small groups. HB 2005, sponsored by Rep. Anthony DeLuca (D-Allegheny) includes a number of provisions that will help to regulate how insurance companies set premiums.

“Pennsylvania is now one of only two states in the country that does not limit the rating factors insurance companies can use to determine rates in the small group and individual market,” said Governor Rendell. “This legislation would change that. We would only allow insurance companies to use age, location and family size to determine rates. We would also limit the most expensive premium rate to no more than twice as costly as the lowest rate for small and individual group coverage, so risks can be shared more broadly and so insurance can be affordable for more people.”

The House bill also includes provisions to require a minimum loss ratio of 85 percent for small groups, which means that 85-cents of every premium dollar must be spent on health-care-related expenses. It also calls for a standard plan, so that consumers can compare between different insurance companies and products. Finally, it allows the Insurance Commissioner to review and set rates for health insurance, which will help to regulate premium increases.

After passing in the House with bi-partisan support – 131 in favor, 72 opposed - the bill was committed to the Senate for its consideration.

Learn More | View Bill

Non-Payment for Medical Errors Bill Passes in State House, Awaits Senate Consideration
Earlier this week, the Pennsylvania House of Representatives took an important step to address the cost and quality of health care here in Pennsylvania with its near unanimous passage of House Bill 2098. HB 2098, sponsored by Rep. Anthony DeLuca, would allow insurance companies to deny payments to health care providers for preventable serious adverse events defined by the federal Centers for Medicare and Medicaid Services. These errors include surgery preformed on the wrong body part, performing the wrong operation on the wrong patient, death from contaminated drugs, and other serious medical mistakes.

The bill provides state support for insurance companies to follow the lead of the commonwealth, which announced in January it would no longer pay for such errors through the Medical Assistance programs. This progressive action by the commonwealth attracted national attention and the bill is the next step toward expanding that effort. The bill is currently awaiting consideration in the Senate.

View Bill

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Governor Rendell Signs Executive Order Implementing Health Information Technology Initiative
Last week, Governor Rendell signed an executive order creating the Pennsylvania Health Information Exchange, or PHIX. PHIX provides an infrastructure for health care providers to better utilize electronic medical records, electronic prescribing and clinical data. This health information technology initiative from Prescription for Pennsylvania will help to support and expand implementation of the chronic care model, the reduction of HAI’s, and other programs designed to improve quality while controlling costs.

“By offering health care providers the ability to electronically share patient information, we will be able to improve patient care and safety and reduce health care costs that are a result of today’s independent information technology systems,” Governor Rendell said.

Learn more | View Release

IN THE NEWS:

Philadelphia Inquirer
April 2, 2008
Small Businesses and Health Care

Government Health IT
March 28, 2008
Pennsylvania Readies HIE

March 27, 2008
Health Information Technology Executive Order Signed - Release

RELATED NEWS:

Allentown Morning Call
April 3, 2008
Physicians, needy Pennsylvanians deserve better than this Mcare deadlock

CBS Evening News
March 17, 2008
Making Hospitals Pay for Own Mistakes


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