Eventually, the market can no longer sustain itself and it collapses. Maine has enacted many health insurance reforms. With the exception of offering standardized plans in the small group market, L.D. 1745 does not reverse the reforms mentioned under question 8. The bill would repeal the requirement to offer the standardized plans in the small group market, because these products were never well received in the marketplace. None of the other reforms are impacted by L.D. 1745.
Community rating applies to both the individual and small group markets in Maine.
In L.D. 1745, the community rate would be more specifically defined as the average rate. Insurers would be able to offer a new discount for those who live a healthy lifestyle, and the current restrictions on rating based on smoking status would be removed. For the individual market, insurers would be permitted to initially take into account an applicant s health status in setting a rate, but similar to age and geographic area, the insurer would be limited to charging rates within a range. Due to the complex regulation of health insurance, insurers are typically limited in their ability to create new and innovative products that comply with all current federal and state law. Under the pilot project proposals, an insurer would be permitted to file for approval a new or innovative product.