House Co-Sponsorship Memoranda

House of Representatives
Session of 2013 - 2014 Regular Session

Posted:	November 1, 2013 01:14 PM
From:	Representative Bryan Barbin
To:	All House members
Subject:	Registration of Discount Plan Organizations

I plan to re-introduce House Bill 847 from the last session. That legislation is entitled the Discount Plan Organization Act. The legislation is based upon the National Association of Insurance Commissioner’s Model law, which has been adopted in a number of other states. It is a consumer protection law, which for the first time provides comprehensive regulatory controls through the Pennsylvania Insurance Department over discount plan organizations (DPOs). Under the legislation, the Department will license and regulate DPOS, which are either medical or prescription discount programs. In essence, consumers can enroll in them for a fee, and in return obtain discounted medical or prescription services. The Department will regulate all aspects of the DPOS, including their financial status, compliance with state law, treatment of consumers, and reporting requirements. The problems encountered by consumers of medical discount programs have been reported nationwide. Implementation of the new federal health care reform legislation has prompted certain unscrupulous individuals to take advantage of the insurance consuming public. This legislation will provide relief to the senior citizens and the working poor of the Commonwealth. Previous co-sponsors for House Bill 847 of the 2011-12 legislative session were DeLUCA , FABRIZIO , PASHINSKI , KOTIK , MATZIE, V. BROWN, CALTAGIRONE , GOODMAN, JOSEPHS , KORTZ , KULA , PRESTON , READSHAW and STABACK
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Introduced as HB1851