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Legislative Report

January 17, 2015

In This Issue

General Assembly Overview

Unclaimed Life Insurance Benefits
Privacy: Breach of Security
Dental and Optometry Service
Use of Investigational Drugs
Mental Health Drugs/Coverage
Coverage of Prescription Eye Drops
Inmates and Medicaid
Prescription for an Overdose
Intervention Drug
Mental Health Drugs
Medical Malpractice
Workers Comp
No Pay, No Play
Do Not Call List

Contact Us




Governor Mike Pence delivered his third State of the State address
this week. One proposal from Pences speech that is catching
headlines is a balanced budget amendment to the Indiana
constitution. Pence also renewed calls for increased education
funding and highlighted the states record on job creation.
History was made this week as Indiana Supreme Court Chief Justice
Loretta Rush delivered the State of the Judiciary address. Rush is the
first female to serve as chief justice in Indiana. In her speech, Rush
announced plans to modernize the court system with an electronic
filing system that will save time and taxpayer dollars.
The number of bills released increased this week as the General
Assembly eclipsed the 1,000 bill mark. We still expect many more to
become public next week. House members are limited to 10 bills so a
maximum of 1000 bills is possible; however, in a long session the
Senate does not have a cap on bills. As bill lists continue to be
handed down, caucus leader priority bills are showing up at this
Committee hearings picked up this week and next week the
schedules are filling up as well. The Statehouse is closed on Monday,
January 19 to honor Martin Luther King, Jr.

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As youll recall from last session, SEA 220 was enacted and requires
insurers to use the SSAs Death Master File (DMF) or a database as
inclusive on all in-force policies, annuity contracts and retained asset
accounts to help with the accurate administration of unclaimed
death benefits. The bill was opposed by a foreign life insurance
As a result of the enactment of that legislation, the foreign company

initiated litigation last fall against the State of Indiana, the Indiana
Department of Insurance and the Insurance Commissioner. The
lawsuit, in part, claims that the requirement to search the DMF on all
in-force policies is an interference with the right to contract.
SB 425 has been introduced in an attempt to address the concerns
cited above. In particular, SB 425 will require only those companies
who engaged in asymmetrical DMF searches prior to July 1, 2015, to
perform DMF searches on all in-force policies, annuity contracts and
retained asset accounts. However, if a company did not engage in
asymmetrical searches, then they only have to conduct DMF
searches on policies, annuity contracts and retained asset accounts
entered into after July 1, 2015.
The bill has been assigned to the Senate Insurance and Financial
Institutions Committee. It has not been scheduled for hearing yet.

HB 1341, authored by House Insurance Chairman Matt Lehman (R),
does the following: Corrects a conflict concerning payment of
expenses of the department of insurance (department) from the
general fund. Amends the law concerning internal audits of domestic
insurer and insurer group financial statements. Requires an insurer or
insurance group to file with the commissioner of insurance an annual
corporate governance disclosure. Specifies requirements concerning
use and disclosure of information related to the annual corporate
governance disclosure.
Removes a requirement for placement of the insurance
commissioner's (commissioner) signature on approval of a proposed
insurer. Defines "designated home state license" and provides for the
licensure for certain out of state insurance producers. Specifies a
designated home state license fee. Adds certain: (1) guarantees
made by an insurer; and (2) acquisitions or investments; to the list of
transactions between a domestic insurer and another person in an
insurance holding company system that require prior notice to the
Further, it repeals and replaces a section of the public adjuster law
concerning public adjuster violations and penalties. Excludes
information related to title insurance from the law concerning
electronic posting or delivery of insurance notices and documents.
Removes a requirement that a policy insure more than four
automobiles for purposes of application of the law concerning
cancellation of automobile insurance policies. Provides for issuance
of group casualty and liability insurance in certain circumstances.
Amends the definition of "small employer" to conform to federal law.
Provides for registration renewal annually on the last day of the
month of issuance, rather than on June 30 of each year, for claim
review agents and utilization review agents. Removes an annual

reporting requirement by the police benefit fund to the department

of insurance.
This bill is scheduled to be heard next Wednesday, January 21st at
10:30 AM in the House Insurance Committee.


Sen. Jim Merritt (R-Indianapolis) has introduced SB 413, which amends
IC 24-4.9 concerning the breach of the security of data that includes
the personal information of Indiana residents and that is collected
and maintained by a person other than a state agency or the
judicial or legislative department of state government.
In pertinent part, the bill specifies that the statute is not limited to
breaches of computerized data; requires a data user to post certain
information concerning the data user's privacy practices on the data
user's Internet web site; increases the amount of the civil penalty that
a court may impose in an action by the attorney general; sets forth
certain information that a data owner must include in a disclosure of
a security breach; and specifies the applicability of different
enforcement procedures available to the attorney general under the
The bill has been assigned to the Senate Homeland Security and
Transportation Committee, but has yet to receive a hearing date.

HB 1279, authored by Rep. Matt Lehman (R-Berne), establishes a
state-assisted retirement plan for private employers and employees.
This is the third year in row that legislation has been introduced
regarding a govt retirement savings option for private employers
and employees. The proposed legislation provides that a newly
created state board will oversee the plan and the manager of the
plan will be contracted out to a third party. Employers can
participate in the plan only if the employer does not offer its
employees a pension or retirement system of any kind. Sen. Greg
Walker is also expected to file a companion bill.
These bills are concerning to those businesses engaged in private
sector financial and retirement planning.


HB 1063, authored by Rep. Ron Bacon (R-Chandler), prohibits dental
and vision insurers and health maintenance organizations from

requiring dentists and optometrists to accept certain payments unless

the health care services are covered services. The bill also prohibits
dentists and optometrists from charging for noncovered services an
amount that exceeds the usual and customary charges for the
services. HB 1063 has been referred to the House Insurance


HB 1065, authored by Rep. Wes Culver (R-Goshen), received an initial
hearing this week in the House Public Health Committee. HB 1065
provides that a manufacturer of an investigational drug, biological
product, or device may make the drug, biological product, or
device available to a patient who meets certain requirements. The
bill also adds to the requirements concerning experimental or
nonconventional medical treatment the authority to allow a patient
to receive an experimental or nonconventional medical treatment if
a physician determines that the patient: (1) has been diagnosed with
a terminal disease or condition; and (2) does not have comparable
or satisfactory treatment options.
HB 1065 was held in committee this week for a potential vote at a
later time.


HB 1448 includes inpatient substance abuse detoxification services as
a Medicaid service. The bill also prohibits the office of Medicaid
policy and planning from requiring prior authorization for a drug that
is a non-addictive medication assistance treatment drug being
prescribed for the treatment of substance abuse. HB 1448 is authored
by Rep. Steve Davisson (R-Salem) and co-authored by House Public
Health Chairman Rep. Ed Clere (R-New Albany) and Rep. Charlie
Brown (D-Gary). HB 1448 awaits a hearing in the House Public Health

HB 1451, authored by Rep. Steve Davisson (R-Salem), includes
telemedicine services within the health care consent law. The bill
provides for coverage of telemedicine services under a policy of
accident and sickness insurance and a health maintenance
organization contract. HB 1451 is scheduled for a hearing on
Wednesday, January 21 in House Public Health at 3:30 in the House



HB 1479, assigned to the House Ways & Means Committee, prohibits
certain state actions related to enforcement or implementation of
the federal Patient Protection and Affordable Care Act (PPACA). The
bill requires the attorney general to file a civil action for injunctive
relief in certain circumstances and also requires a tax deduction for
taxpayers paying a penalty in relation to PPACA. HB 1479 repeals a
provision concerning application for a state innovation waiver under
PPACA. The bill is authored by Rep. Tim Harman (R-Bourbon) and coauthored by Rep. Curt Nisly (R) and Rep. Ben Smaltz (R-Auburn).


SB 26, authored by Sen. Pat Mille r (R-Indianapolis), requires that
certain state employee health plans, policies of accident and
sickness insurance, and health maintenance organization contracts
must cover refills and additional units of prescription eye drops under
specified conditions. This bill came as a result of the interim
committee on public health, behavioral health, and human services.
SB 26 is estimated to increase state expenditures between $51,000
and $131,000 during CY 2016. This increase is attributable to (1)
additional expenditures between $50,000 and $80,000 for changes to
the state employee health plan and (2) additional expenditures of
$51,000 to financing state-mandated coverage for prescription eye
drops under the federal Affordable Care Act (ACA).
SB 26 is scheduled for a hearing on Wednesday, January 21 in Senate
Health & Provider Services at 9:00 am in Room 431.


In an effort to address the cost of inmate healthcare, Sen. Pat Miller
(R-Indianapolis) has introduced SB 212. This bill makes the
Department of Correction (DOC) an inmate's authorized
representative for applying for Medicaid for inmates who are
potentially eligible for Medicaid and who incur medical care
expenses that are not otherwise reimbursable. The bill requires the
DOC and the Office of the Secretary of Family and Social Services
(FSSA) to enter into an agreement in which the DOC pays the state
share of the Medicaid costs incurred for the inmate.
The bill also allows a sheriff to apply on behalf of a lawfully detained
individual for Medicaid and act as the person's Medicaid
representative if the sheriff enters into an agreement with the FSSA to
pay the state share of the Medicaid costs incurred for the person.
SB 212 is scheduled for a hearing on Tuesday, January 20 in the
Senate Corrections & Criminal Law Committee.



SB 406 allows specified health care professionals with prescriptive

authority to dispense or write a prescription for an overdose
intervention drug without examining the individual to whom it may be
administered if specified conditions are met. The bill allows for an
individual who is a family member, friend, or other individual in a
position to assist another individual who, there is reason to believe, is
at risk of experiencing an opioid-related overdose, to obtain and
administer an overdose intervention drug if certain conditions are
met. It also provides for civil and criminal immunity. Sen. Jim Merritt (RIndianapolis) is the author of SB 406.


Sen. Pat Miller (R-Indianapolis) has authored SB 464 which contains
the following provisions:

Use of Long Acting, Nonaddictive Medication in Community

Supervision It provides that addictions counseling, inpatient
detoxification, and long acting, nonaddictive medication
may be required to treat opioid or alcohol addiction as a
condition of parole, probation, community corrections,
pretrial diversion, or participation in a problem solving court.

Expansion of Medicaid Eligibility for Certain Medications It

includes inpatient substance abuse detoxification services as
a Medicaid service. It prohibits the office of Medicaid policy
and planning (office) from requiring prior authorization for a
drug that is a nonaddictive medication assistance treatment
drug being prescribed for the treatment of substance abuse.
It requires the office to include coverage for addictive
medication assistance treatment drugs being prescribed for
substance abuse treatment but allows for prior authorization.
It requires coverage under the Indiana check-up plan of
nonaddictive and addictive medication assistance treatment
drugs prescribed for the treatment of substance abuse.

Certified Community Mental Health Centers It authorizes

applications for a new opioid treatment program run by a
certified community mental health center.

Repeal of DOC Requirement It repeals the requirement that

the Department of Correction estimate, prior to March 1,
2015, the amount of any operational savings that will be
realized in FY 2015 from a reduction in the number of
individuals who are in the custody or made a ward of DOC.

Two bills dealing with medical malpractice have been filed this year:
SB 55, authored by Sen. Brent Steele (R-Bedford), and HB 1043,
authored by Rep. Jerry Torr (R-Carmel). As introduced, each bill varies
in detail.
SB 55 permits a patient to bring an action against a health care
provider without submitting the complaint to the medical review
board if the amount of the claim is not more than $187,000. (Under
current law, a patient may bring a direct action only if the amount is
not more than $15,000.)

HB 1043 increases the medical malpractice cap from $1,250,000 to

$1,650,000 for claims arising after June 30, 2015 and increases the
maximum amount of liability for a health care provider or a health
care provider's insurer from $250,000 to $300,000.
SB 55 is scheduled for a hearing on Wednesday, January 21 in the
Senate Judiciary Committee.

SB 33 deals with workers compensation and ambulatory service
centers (ASC). The bill as drafted by Sen. Phil Boots (R-Crawfordsville)
adds an ambulatory outpatient surgical center to the definition of
"medical service facility" under the worker's compensation law. The
ASCs would prefer parity with hospital outpatient rates so their
reduction wouldnt be as drastic. The current language provides that
the ASC rates are tied to their own Medicaid schedule so there is a
larger reduction. This will be an ongoing debate as the bill is heard
again in the Senate Pensions & Labor Committee on Wednesday,
January 21.

HB 1192, authored by Rep. Kevin Mahan (R-Hartford City), provides
that an uninsured motorist is not entitled to collect non-economic
damages when involved in a motor vehicle accident. The bill has
been assigned to the House Insurance Committee.


Sen. Mike Delph (R-Carmel), has filed SB 227 which removes existing
exemptions from the statute governing telephone solicitations of
consumers (Indiana's "do not call" list) for calls made by, in pertinent
part, Licensed insurance producers and surplus lines producers.

Sen. Carlin Yoder has filed SB 347, which requires TNCs (e.g., Uber) to
obtain a permit issued by INDOT in order to operate in Indiana. The
bill establishes numerous requirements necessary for a TNC to obtain
a permit, including insurance requirements. A competing bill is
expected to be released next week which will address additional
components necessary for greater insurance protection consumer

For more information

Trent Hahn
Telephone: 317/684-5400
Fax: 317/684-5432