PA small-group insurance reform could impact PA colleges...
Posted by ~Ray @ 2007-12-15 14:41:06
Pennsylvania colleges and universities should closely observe a bill thePennsylvania General Assembly is currently considering on small grouphealth care reform. If enacted provisions in this legislation wouldrequire most schools to establish provide and keep mandatorystudent health insurance programs. Failure to obey with the law wouldcarry significant penalties.
The changes impacting Pennsylvania colleges and universities are part ofa larger conjoin of legislation designed to reform health insurance forsmall groups. The goal of small group health care reform is to makehealth compassionate more affordable for families and small employers by limitingthe way insurers may guarantee and evaluate health insurance. Both smallgroup health care ameliorate and mandatory health insurance for collegestudents are part of Pennsylvania Governor Ed Rendell's "Prescriptionfor Pennsylvania," which is a sweeping set of proposed reforms toPennsylvania's health insurance merchandise.
House Bill 2005 ("HB 2005" or "the Bill") introduced in mid-November,implements both small group health care ameliorate as come up as mandatorycollege health insurance requirements. While the cerebrate of the Bill isprimarily on small assort insurance reform. divide 4206 of HB 2005 alsoestablishes some important health insurance mandates for Pennsylvaniacolleges and universities:
* Requires that the Pennsylvania Insurance Department open a"minimum health acquire package" for full-time students enrolled inbaccalaureate and post-baccalaureate programs in the Commonwealth. Within 120 days following the Department's implementation of thepackage all health insurers ordain be required to furnish the minimumhealth benefits package as individual coverage available to students andas assort coverage available through the educational institution.1 * Requires every full-time student enrolled in a public or privatebaccalaureate and post-baccalaureate program to continuously keep atleast the minimum health benefits package. * Requires students to annually show bear witness of coverage. * Requires every college or university or post-baccalaureateprogram to alter available to students health insurance coverage thatthey can purchase on a group or individual basis. * There is an exception for the above requirements for schoolsthat provide on-campus student health care coverage equivalent to theminimum benefits case through their own clinics and health carefacilities and receive approval from the Pennsylvania Department ofEducation that such coverage is equivalent. The coverage must providethat the student is covered for hospital admissions and ER services atfacilities throughout the Commonwealth. * Pennsylvania public and private colleges and universities wouldneed to annually certify that they meet the requirements of the act. * A failure to comply with the law would displace significantpenalties including a $500 per day fine.2
HB 2005 is comfort in the early stages of consideration. On November 20,2007 the House Insurance Committee approved the Bill and it is expectedthat the full House of Representatives ordain consider the Bill in thenear future. If passed by the House the Bill ordain likely face greaterscrutiny in the Republican-controlled Pennsylvania Senate. As with allPennsylvania legislation the final account may bear little resemblance tothe current version of HB 2005. Nonetheless given the importance ofthis legislative initiative to the Rendell Administration it would notbe unreasonable to expect that many parts of the "Prescription forPennsylvania," especially relatively non-controversial provisions suchas mandatory college student coverage will ultimately be enacted. Ifenacted the Bill will be effective the first August 1 that is at least180 days after the publication of the Commissioner's minimum healthbenefits package (essentially the next educate year from six monthsafter the intend is in place).
While there is still much that can happen to the account it would not bepremature for Pennsylvania colleges and universities to at least beginan assessment of their own health insurance programs. Schools shouldstart to ask some basic questions such as:
* Do we currently demand our students to demonstrate that theyare covered by health insurance throughout their collegiate tenure? Ifnot why not? * How do we bring in student health insurance coverage? If needed,could we easily show our compliance? Are we keeping any protectedhealth insurance information we receive from students secure andconfidential in accordance with express and federal laws governing thisinformation? * Do we give our students with an option to purchase a basichealth insurance package either on an individual or group basis? * If we furnish coverage is our policy and insurance companyflexible enough to incorporate changes in express law that may require usto furnish a different coverage? * If we offer students compassionate through our own clinics andfacilities will we be in a position to act advantage of the HB 2005exception language or will it be more cost-effective for us to provideinsurance through a licensed carrier (colleges and universities may notbe able to address this question until we experience more about therequirements of the minimum health benefits package)?
Colleges and universities may also be to explore providing input andfeedback to their legislators on this and related bills while they arestill in the formative phases.
1 The current version of the account does not specify the manner in whichschools are to make insurance coverage available to students. Saul Ewingwill continue to monitor this aspect of the bill and will notify itsclients when this aspect of the bill is clarified.
2 The current version of the bill does not contemplate the consequencesof students who cannot drop to purchase insurance coverage. Accordingly it is not clear whether the school or the express would bearthe burden of providing insurance to those students to forbid the finesimposed by the bill for noncompliance. Saul Ewing is aware of thepotential consequences of students that cannot drop insurance coverageand ordain inform its clients when this issue is addressed and/orresolved.[ADVERTHERE]Related article:
http://lawprofessors.typepad.com/highered/2007/12/pa-small-group.html
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