It eliminates the requirement that private purchasing alliances offer health coverage through more than one carrier. Currently, employers or individuals may not become aware of their renewal rate until it is too late to shop for new coverage before their current plan expires. I am aware that the Committee has recently addressed this issue in L.D. 984, but I would note that that bill would not apply to all types of health insurance contracts. It expands the current requirement for carriers to provide loss experience for employers wishing to shop for lower rates. For large groups, a new carrier needs access to the group s loss experience under the current carrier in order to quote an appropriate rate.
Current law requires the current carrier to provide summary data.
The proposed change would expand the level of detail while restricting access to confidential data. It makes group HMO plans subject to the same continuation of coverage requirements currently applicable to group indemnity products. This would apply, for example, when an employee leaves his or her job, or when a child becomes too old to be covered as a dependent. For these plans, Maine law provides similar rights in limited circumstances, namely when an employee loses coverage due to a temporary layoff or due to a work-related injury or sickness. Currently, this requirement is not applicable to HMOs.