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                                                      PRINTER'S NO. 3887

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2617 Session of 2004


        INTRODUCED BY REICHLEY, ADOLPH, ALLEN, ARMSTRONG, BARRAR,
           BELFANTI, BENNINGHOFF, BOYD, BROWNE, BUNT, CAPPELLI, CAWLEY,
           CLYMER, CORRIGAN, CRAHALLA, DALLY, DENLINGER, FABRIZIO,
           FAIRCHILD, GEORGE, GOODMAN, HENNESSEY, LAUGHLIN, MANN,
           McCALL, McILHATTAN, O'NEILL, PAYNE, READSHAW, SATHER,
           SCAVELLO, SCHRODER, SOLOBAY, TIGUE, WASHINGTON, WATSON,
           YOUNGBLOOD AND CIVERA, MAY 24, 2004

        REFERRED TO COMMITTEE ON HEALTH AND HUMAN SERVICES, MAY 24, 2004


                                     AN ACT

     1  Amending the act of June 13, 1967 (P.L.31, No.21), entitled "An
     2     act to consolidate, editorially revise, and codify the public
     3     welfare laws of the Commonwealth;" further defining "health
     4     care provider"; and further providing for abatement program,
     5     for procedure and for certificate of retention.

     6     The General Assembly of the Commonwealth of Pennsylvania
     7  hereby enacts as follows:
     8     Section 1.  The definition of "health care provider" in
     9  section 1301-A of the act of June 13, 1967 (P.L.31, No.21),
    10  known as the Public Welfare Code, added December 23, 2003
    11  (P.L.237, No.44), is amended to read:
    12  Section 1301-A.  Definitions.
    13     The following words and phrases when used in this article
    14  shall have the meanings given to them in this section unless the
    15  context clearly indicates otherwise:
    16     * * *


     1     "Health care provider."  An individual who is all of the
     2  following:
     3         (1)  A physician, licensed podiatrist or certified nurse
     4     midwife.
     5         (2)  A participating health care provider as defined in
     6     section 702 of the act of March 20, 2002 (P.L.154, No.13),
     7     known as the Medical Care Availability and Reduction of Error
     8     (Mcare) Act.
     9     * * *
    10     Section 2.  Sections 1302-A, 1304-A and 1305-A of the act,
    11  added December 23, 2003 (P.L.237, No.44) are amended to read:
    12  Section 1302-A.  Abatement program.
    13     There is hereby established within the Insurance Department a
    14  program to be known as the Health Care Provider Retention
    15  Program. The Insurance Department, in conjunction with the
    16  department, shall administer the program. The program shall
    17  provide assistance in the form of assessment abatements to
    18  health care providers for calendar years 2003 and 2004. A
    19  licensed podiatrist shall be eligible for an assessment
    20  abatement for calendar year 2004 only.
    21  Section 1304-A.  Procedure.
    22     (a)  Application.--A health care provider may apply to the
    23  Insurance Department for an abatement of the assessment imposed
    24  for the previous calendar year. The application must be
    25  submitted by February 15 of the current calendar year and be on
    26  the form required by the Insurance Department. In addition to a
    27  completed application, an applicant shall submit all of the
    28  following supporting information:
    29         (1)  A statement of the applicant's field of practice,
    30     including any specialty.
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     1         (2)  Any proof of payment of the applicant's assessment
     2     for the preceding calendar year.
     3         (3)  A copy of, and proof of payment of, the applicant's
     4     premium for medical professional liability insurance for the
     5     preceding, if applicable, and the current calendar years. The
     6     proof of payment shall indicate the amount of premium paid.
     7         (4)  Except for physicians enrolled in an approved
     8     residency or fellowship program, a signed certificate of
     9     retention.
    10         (5)  A signed certification that the health care provider
    11     is an eligible applicant under section 1303-A for the
    12     program.
    13         (6)  Such other information as the Insurance Department
    14     may require.
    15     (b)  Review.--Upon receipt of a complete application, the
    16  Insurance Department shall review the applicant's information
    17  and grant a complete or partial abatement of the assessment for
    18  the previous calendar year in accordance with all of the
    19  following:
    20         (1)  The Insurance Department shall notify the department
    21     that the applicant is entitled to a 100% abatement of the
    22     imposed assessment if the health care provider was assessed
    23     under section 712(d) of the Mcare Act as:
    24             (i)  a physician who is assessed as a member of one
    25         of the four highest rate classes of the prevailing
    26         primary premium;
    27             (ii)  an emergency physician;
    28             (iii)  a physician who routinely provides obstetrical
    29         services in rural areas as designated by the Insurance
    30         Department; or
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     1             (iv)  a certified nurse midwife.
     2         (2)  The Insurance Department shall notify the department
     3     that the applicant is entitled to a 50% abatement of the
     4     imposed assessment if the health care provider was assessed
     5     under section 712(d) of the Mcare Act as a physician or a
     6     licensed podiatrist but does not qualify for an abatement
     7     under paragraph (1).
     8     (c)  Refund.--If a health care provider paid the assessment
     9  for calendar year 2003 prior to applying for an abatement under
    10  subsection (a), the health care provider may, in addition to the
    11  completed application required by subsection (a), submit a
    12  request for a refund. The request shall be submitted by February
    13  15, 2004, and be on the form required by the Insurance
    14  Department. If the Insurance Department grants the health care
    15  provider an abatement of the assessment for calendar year 2003
    16  in accordance with subsection (b), the Insurance Department
    17  shall refund to the health care provider the portion of the
    18  assessment which was abated.
    19  Section 1305-A.  Certificate of retention.
    20     (a)  Certificate.--The Insurance Department shall prepare a
    21  certificate of retention form. The form shall require a health
    22  care provider seeking an abatement under the program to attest
    23  that the health care provider will continue to provide health
    24  care services in this Commonwealth for at least one full
    25  calendar year following the year for which an abatement was
    26  received pursuant to this article.
    27     (b)  Repayment.--
    28         (1)  Except as provided in paragraph (2), if a health
    29     care provider receives an abatement but, prior to the end of
    30     the retention period, ceases providing health care services
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     1     in this Commonwealth, the health care provider shall repay to
     2     the Commonwealth 100% of the abatement received plus
     3     administrative and legal costs, if applicable.
     4         (2)  Paragraph (1) shall not apply to a health care
     5     provider who is any of the following:
     6             (i)  A physician who is enrolled in an approved
     7         residency or fellowship program.
     8             (ii)  A [physician] health care provider who dies
     9         prior to the end of the retention period.
    10             (iii)  A [physician] health care provider who is
    11         disabled and unable to practice prior to the end of the
    12         retention period.
    13             (iv)  A [physician] health care provider who is
    14         called to active military duty prior to the end of the
    15         retention period.
    16             (v)  A physician who retires and who is at least 70
    17         years of age prior to the end of the retention period.
    18     (c)  Tax.--An amount owed the Commonwealth under subsection
    19  (b) shall be considered a tax under section 1401 of the act of
    20  April 9, 1929 (P.L.343, No.176), known as The Fiscal Code. The
    21  Department of Revenue shall provide assistance to the Insurance
    22  Department in any collection effort.
    23     Section 3.  This act shall take effect in 60 days.





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