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Bill > HB966


PA HB966

PA HB966
In quality health care accountability and protection, further providing for departmental powers and duties and providing for additional penalties.


summary

Introduced
03/19/2025
In Committee
03/19/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

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," in quality health care accountability and protection, further providing for departmental powers and duties and providing for additional penalties.

AI Summary

This bill amends the Insurance Company Law of 1921 to enhance health insurance accountability and impose additional penalties on insurers. The bill requires the insurance department to post its annual report on its public website, detailing the implementation and enforcement of health insurance regulations. More significantly, the bill introduces a penalty system for insurers who have a high rate of overturned adverse benefit determinations. If more than 50% of an insurer's adverse benefit determinations are overturned through internal claim and appeal procedures or external review processes, the department will impose escalating financial penalties: $50,000 for the first overturned determination, $100,000 for the second, and $250,000 for the third and subsequent overturned determinations. These penalties are intended to be used for consumer protection activities and are in addition to any other existing penalties. The bill will take effect six months after its enactment, giving insurers time to adjust to the new requirements and potential financial consequences for repeated claim denials.

Committee Categories

Business and Industry

Sponsors (36)

Last Action

Referred to Insurance (on 03/19/2025)

bill text


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