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Legislative Report

January 23, 2015

In This Issue

General Assembly Overview
Unclaimed Life Insurance Benefits
Privacy: Breach of Security
HERO Plans
Dental and Optometry Service
Use of Investigational Drugs
Coverage of Prescription Eye Drops
Inmates and Medicaid
Mental Health Drugs
Medical Malpractice
Worker’s Comp
No Pay, No Play
Do Not Call List

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This week at the Statehouse, a number of bill lists were handed down
in the House and Senate giving a total bill count thus far of 570 in the
Senate and 667 in the House. We have seen a number of caucus bills
introduced, typically bills that are lower in number. At this point, the
large majority of bills have been released.
One such caucus bill is SB 1 dealing with the State Board of
Education. Included in SB 1 is language which provides that the State
Board of Education members shall elect a chairperson annually
within the members of the board. This departs from the current law
which provides that the Superintendent of Public Instruction serves as
board chair. SB 1 is just one of over 100 education-related bills filed
this session, demonstrating the continued activity in the education
HB 1002 is the much-anticipated ethics legislation this session. In the
wake of a few headline-grabbing ethical issues, legislative leaders
vowed to address ethics concerns this year. The bill addresses key
legislative ethics such as statements of economic interest, postemployment restrictions and waivers, and the use of state materials
and equipment.
The alcohol debate dealing with Sunday Sales is heating up this year.
A coordinated effort on behalf of retail stores, known as Hoosiers for
Sunday Sales, is advocating to repeal the ban on Sunday Sales of
alcohol products at retail stores. Twelve states have laws that prohibit
the sale of alcohol at retail stores on Sunday. HB 1026, introduced by
Rep. Sean Eberhart (R-Shelbyville), provides that a holder of an
alcoholic beverage permit who is authorized by law to sell alcoholic
beverages for carryout may sell alcoholic beverages for carryout on
Sunday. A competing bill has been filed by the House Public Policy
Chairman, Rep. Tom Dermody (R-LaPorte). Rep. Dermody's bill, HB
1624, provides that a holder of an alcoholic beverage permit who is
authorized by law to sell alcoholic beverages for carryout may sell
alcoholic beverages for carryout on Sunday from 10 a.m., prevailing
local time, until 6 p.m., prevailing local time.
Next week, committee hearings will be abundant. As committee
reports are adopted in the House and Senate, we will also see an
increase in Second Reading amendments for bills on the House and
Senate floor calendar.

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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. It also removes the fuzzy match requirement.
The bill is going to be heard on Thursday, February 5th at 9:00am, in
the Senate Insurance and Financial Institutions Committee.

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.
The bill was heard on Wednesday in the House Insurance Committee.
An amendment was adopted to clarify language with respect to
several new group products (members of the armed forces; nontrucking liability; and tenant users liability). The Chairman held the bill
to work on issues regarding the Corporate Governance Annual
Disclosure section of the bill. It is scheduled to be heard again next
Wednesday, January 28th at 10:30am.

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.
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 has filed SB 555, a companion to HB 1279.
Rep. Lehman and Sen. Walker have indicated that they are not
going to move forward with the bills as drafted. Instead, they are
considering creating a website portal to serve as a connector for
providers and consumers. Discussions continue as to the direction
and substance of a website portal concept.

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
Committee, but has not yet been scheduled for a hearing.

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 is being heard on Wednesday, January 28th in the House
Public Health Committee for amendment and vote only.

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 was heard this week in House Public
Health. After extensive testimony, the bill was held in committee for
further discussion.

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 co-

authored by Rep. Curt Nisly (R) and Rep. Ben Smaltz (R-Auburn). The
bill has been referred to Ways and Means.

SB 26, authored by Sen. Pat Mille r (R-Indianapolis), was heard in the
Senate Health & Provider Services Committee this week where the bill
was amended and approved by the committee by a vote of 8-0. The
bill now requires that beginning January 1, 2016, 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 will be up for second reading amendment and third reading
vote next week.

In an effort to address the cost of inmate healthcare, Sen. Pat Miller
(R-Indianapolis) has introduced SB 212. SB 212 was approved by the
Senate Corrections & Criminal Law Committee this week by a vote of
8-0. 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 will be up for second reading amendment and third reading
vote next week.

Sen. Pat Miller (R-Indianapolis) has authored SB 464 which contains
the following provisions below. SB 464 is scheduled for a hearing on
January 28 in the Senate Health & Provider Services Committee.

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 was heard on Wednesday in Senate Judiciary. The bill passed
out of committee (8-1) with an amendment which 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 $50,000. (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. This bill has yet to
be scheduled for a hearing.

SB 33 deals with worker’s 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
bill passed unanimously out of Committee on Wednesday with an
amendment that limits the reimbursement for implants to cost plus
25%. The bill now moves to the full Senate for consideration.

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. It is expected to
receive a hearing next week.

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. The
bill has been assigned to the Senate Committee on Commerce and
Technology, but has not been scheduled for a hearing yet.

Sen. Carlin Yoder has filed SB 347, which requires TNC’s (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. The bill is scheduled to
be heard in Senate Homeland Security & Transportation on Tuesday,
January 27th at 10am.
Rep. Matt Lehman has filed a competing bill, HB 1278, which limits its
application to specific insurance requirements for TNC’s and TNC
drivers. The bill is scheduled to be heard on Wednesday, January 28th
at 10am in the House Roads and Transportation Committee.

For more information
Trent Hahn
Telephone: 317/684-5400
Fax: 317/684-5432