Senate Passes Bill to Extend CHIP Program And Protect Those Who Purchase Annuities

(HARRISBURG) — The State Senate today approved legislation sponsored by Senator Jake Corman (R-34) that would extend the state’s Children’s Health Insurance Program (CHIP) and provide additional protections for consumers who purchase annuities.

Corman said Senate Bill 237 would reauthorize CHIP through December 31, 2013.  The program provides health insurance to all uninsured children and teens who are not eligible for or enrolled in Medical Assistance.

“CHIP has been extremely successful in making children’s health insurance available and affordable for families across the Commonwealth,” Corman said.  “This legislation will ensure that the program continues to meet that mission in the years to come.”

Corman’s legislation also would ensure that those selling annuities in Pennsylvania are making sure that the product is right for those purchasing them based on financial status, tax status and investment objectives.

“Essentially this will provide assurance that the product is “suitable” for the person’s future plans and needs,” Corman said.  “We have set the set the same requirement for long-term care insurance, and now we need to provide the same additional protections for those who are planning for their future.”

He said more than 30 states have adopted similar laws or regulations related to annuities.

CONTACT:
Anna Fitzsimmons
Phone: (717) 787-1377