THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

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

REFERRED TO COMMITTEE ON INSURANCE, MARCH 19, 2009  

AN ACT

Amending the act of May 17, 1921 (P.L.682, No.284), entitled "An

act relating to insurance; amending, revising, and

consolidating the law providing for the incorporation of

insurance companies, and the regulation, supervision, and

protection of home and foreign insurance companies, Lloyds

associations, reciprocal and inter-insurance exchanges, and

fire insurance rating bureaus, and the regulation and

supervision of insurance carried by such companies,

associations, and exchanges, including insurance carried by

the State Workmen's Insurance Fund; providing penalties; and

repealing existing laws," providing for notice of termination

of health insurance coverage.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of May 17, 1921 (P.L.682, No.284), known

as The Insurance Company Law of 1921, is amended by adding a

section to read:

Section 635.4.  Notice of Termination.--(a)  Within ninety

(90) days of an employer's decision to terminate coverage of

employes under a health insurance policy, the employer shall

notify the insurer in writing of the decision. The insurer shall

provide written notice of the employer's decision to insureds

within ten (10) days of the date of notification. If an employer

fails to notify an insurer under this subsection, an insurer

shall provide written notice to insureds of the employer's

decision within ten (10) days of the date of termination of

coverage.

(b)  An employer shall provide written notification of the

employer's decision to terminate coverage of employes under a

health insurance policy to the affected employes ninety (90)

days or more in advance of the effective date of the termination

of coverage.

(c)  An employer that fails to comply with the notification

provisions of this section shall be responsible for payment of

any costs of medical care that would have been covered under a

terminated health insurance policy incurred by an employe during

the ninety (90) day period following the date of termination of

coverage.

(d)  This section shall apply to any health insurance policy

offered, issued or renewed on or after the effective date of

this subsection.

(e)  This section shall not apply to the following types of

policies:

(1)  Accident only.

(2)  Fixed indemnity.

(3)  Limited benefit.

(4)  Credit.

(5)  Dental.

(6)  Vision.

(7)  Specified disease.

(8)  Medicare supplement.

(9)  Civilian Health and Medical Program of the Uniformed

Services (CHAMPUS) supplement.

(10)  Long-term care or disability income.

(11)  Workers' compensation.

(12)  Automobile medical payment.

(f)  As used in this section:

"Health insurance policy" means any individual or group

health, sickness or accident policy, subscriber contract,

certificate or plan issued by an entity subject to one of the

following:

(1)  This act.

(2)  The act of December 29, 1972 (P.L.1701, No.364), known

as the "Health Maintenance Organization Act."

(3)  The act of May 18, 1976 (P.L.123, No.54), known as the

"Individual Accident and Sickness Insurance Minimum Standards

Act."

(4)  40 Pa.C.S. Ch. 61 (relating to hospital plan

corporations) or 63 (relating to professional health services

plan corporations).

"Insurer" means any entity that issues a health insurance

policy.

Section 2.  This act shall take effect in 60 days.