Pennsylvania HB 690: An Act amending Title 40 (Insurance) of the Pennsylvania Consolidated Statutes, in regulation of insurers and related persons generally, providing for group market provisions; and imposing penalties.

Bill Text

PRINTER'S NO. 706
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 690
Session of
2025
INTRODUCED BY ZIMMERMAN, HAMM, PICKETT, GREINER, JAMES,
OLSOMMER, COOK AND ROAE, FEBRUARY 21, 2025
REFERRED TO COMMITTEE ON INSURANCE, FEBRUARY 21, 2025
AN ACT
Amending Title 40 (Insurance) of the Pennsylvania Consolidated
Statutes, in regulation of insurers and related persons
generally, providing for group market provisions; and
imposing penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 40 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 41
GROUP MARKET PROVISIONS
Subchapter
A. Preliminary Provisions
B. Procedures
C. Miscellaneous Provisions
SUBCHAPTER A
PRELIMINARY PROVISIONS
Sec.
4101. Definitions.
§ 4101. Definitions.
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The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Commissioner." The Insurance Commissioner of the
Commonwealth.
"Insurer." An entity licensed by the department with
accident and health authority to issue a policy, subscriber
contract, certificate or plan that provides medical or health
care coverage, including emergency services, and is offered or
governed under any of the following:
(1) The act of May 17, 1921 (P.L.682, No.284), known as
The Insurance Company Law of 1921, including section 630 and
Article XXIV of that act.
(2) The act of December 29, 1972 (P.L.1701, No.364),
known as the Health Maintenance Organization Act.
(3) Chapter 61 (relating to hospital plan corporations)
or 63 (relating to professional health services plan
corporations).
SUBCHAPTER B
PROCEDURES
Sec.
4111. Furnishing claims experience data to policyholders.
§ 4111. Furnishing claims experience data to policyholders.
(a) Requirement.--Subject to the other provisions of this
chapter, each insurer shall furnish claims experience data to
group policyholders within 30 days of a group policyholder's
request unless the information has been furnished to the group
policyholder within the preceding six months.
(b) Applicable group size.--Claims experience data shall be
furnished for each group of 51 or more covered employees,
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members or enrollees, not including dependents.
(c) Claims experience data defined.--For purposes of this
chapter, claims experience data includes, for at least the last
two policy years, if applicable, separated by policy year, the
aggregated dollar value of each of the following:
(1) Earned premiums.
(2) Total incurred claims, including paid, reserved and
incurred but not reserved claims, inclusive of high amount
claims, pooled claims, capitated expenses and noncapitated
expenses.
(3) Any amounts incurred in excess of the individual
pooling or stop-loss point applicable to the group.
(4) Any amounts under a provider reimbursement
methodology other than fee for service that were allocated to
the group or otherwise accounted for in rating the group's
policy.
(d) Fee permitted.--An insurer may charge a fee for
providing the claims experience data to a group policyholder.
The fee must be:
(1) Reasonable.
(2) Not unfairly discriminatory.
(3) In accord with a schedule or methodology filed with
the department at least 30 days prior to use, which schedule
shall become effective unless disapproved by the department
prior to use.
(e) Privacy protection.--In providing claims experience data
to a group policyholder under this chapter, an insurer shall
adhere to all Federal and State laws regarding disclosure of
protected health or personal information.
SUBCHAPTER C
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MISCELLANEOUS PROVISIONS
Sec.
4121. Regulations.
4122. Enforcement and penalties.
§ 4121. Regulations.
The department may promulgate regulations as necessary and
appropriate to implement, administer and enforce this chapter.
§ 4122. Enforcement and penalties.
(a) Penalties.--Subject to the other provisions of this
section, upon satisfactory evidence of the violation of any
section of this chapter by an insurer or any other person, one
or more of the following penalties may be imposed at the
commissioner's discretion:
(1) Suspension or revocation of the license of the
offending insurer or other person.
(2) Refusal, for a period not to exceed one year, to
issue a new license to the offending insurer or other person.
(3) A fine of not more than $5,000 for each violation of
this chapter.
(4) A fine of not more than $10,000 for each willful
violation of this chapter.
(b) Limitations.--
(1) Fines imposed under this section against an insurer
may not exceed $500,000 in the aggregate during a single
calendar year.
(2) Fines imposed under this section against any other
person may not exceed $100,000 in the