An Act To Create Lower-cost Health Insurance Options
Maine Legislature, Session 122, LD 1523
Committee: Insurance and Financial Services
Sponsors: WOODBURY, BRAUTIGAM, PILON, MILLS
Amends: 24-A MRSA §2808-B, 24-A MRSA §4222-B, 5 MRSA §285

Legislative Document 
No. 1523 
H.P.1070 
House of Representati ves, March 31, 2005 
An Act To Create Lower-cost Health Insurance Options 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
Presented by Representative WOODBURY of Yarmouth. 
'If/~ /n. 71lu£~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representatives: BRAUTIGAM of Falmouth, PILON of Saco, Senator: 
MILLS of Somerset. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
PART A 
Sec. A-I. 24-A MRSA §2808-B. sub-§IO is enacted to read: 
10. 
Qptions included in all heal-.tJ;L coverage 
pl~s. 
All 
carriers offering small group health I?lans in this State shall 
offer, when offering and when renewing a health plan, alternative 
coverage under a catastrophic plan defined in rules adopted by 
the 
superintendent. 
The 
superintendent 
shall 
adopt 
rules 
to 
define the catastrophic plan that must be offered pursuant to 
this subsection. Rules adopted pursuant to this subsection are 
routine technical rules 
as defined in Title 5, 
chapter 
375, 
subchapter 2-A. To the extent allowed by federal and state law, a 
carrier may offer health savings accounts in conjunction with a 
catastrophic plan. 
Sec. A-2. 24-A MRSA §§280S-C and 2S0S-D are enacted to read: 
§2808-C. 
Mandatory options in all group health coverage plans 
1. 
Mandatory offer. 
All carriers offering group health 
plans in this State shall offer, when offering and when renewing 
a health plan, alternative coverage under 
a catastrophic plan 
defined 
in 
rules 
adopted 
by 
the 
superintendent. 
The 
superintendent shall adopt rules to define the catastrophic plan 
that must be offered pursuant to this subsection. Rules adol?ted 
pursuant 
to 
this 
subsection 
are 
routine 
technical 
rules 
as 
defined in Title 5, chapter 375, subchal?ter 2-A. 
To the extent 
allowed by federal and state law, 
a carrier may offer health 
savings accounts in conjunction with a catastrophic plan. 
§2808-D. 
Employee choice of alternate plans 
An employer who offers coverage under a group plan to its 
employees, including a small group I?lan as defined in section 
2808-B, 
subsection 
1, 
paragraph 
G, 
shall 
also 
offer 
its 
employees, when offering and when renewing of the health I?lan, 
the option of selecting the catastrophic plan or plans offered by 
a carrier pursuant to section 2808-B, subsection 10 or section 
2808-C. 
1. 
Employer contributions. 
An employer that contributes to 
the premium cost of any health plan for its employees shall 
contribute 
the 
same 
amount 
to 
the 
premium 
cost 
of 
the 
catastrophic plan or the total premium cost of the catastrophic 
plan, whichever is less. 
An employer may not be required to I?ay 
more for health benefits as a result of the application of this 
section than would otherwise be paid. 
Page I-LR2076(1) 
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-"'2'-".'------"Me~d~i'_"c"'a""I"____'s,.;a"'v~i"'n""g~s"------'a=c!=ounts • 
To 
the ex te nt allowed by 
federal and state law, an employer may establish health savings 
accounts for its employees in conjunction with a catastrophic 
Sec. A-3. 24-A MRSA §4222-B, sub-§21 is enacted to read: 
21. 
Section 
2736-C, 
subsection 
10; 
section 
2808-B, 
subsection 
10; 
and 
section 
2808 C, 
relating 
to 
the 
health 
coverage plan, apply to health maintenance organizations. 
PARTB 
Sec. B-1. 5 MRSA §285, sub-§2, as amended by PL 1991, c. 780, 
Pt. y, §23, is further amended to read: 
2. 
Coverage. 
Each state employee to whom this section 
applies is eligible for a group health plan as provided in Title 
24-A, sections 2802 to 2812, including major medical benefits or 
through a self-funded alternative. 
Beginning January 1, 
2006, 
the State shall offer each state employee eligible for coverage 
under this section alternative coverage under a health insurance 
policy in conjunction with a health savings account in accordance 
wi th federal law. 
The provisions of the group insurance policy 
or policies or the self-funded alternative must be determined, 
insofar as the provisions are not inconsistent with terms and 
conditions 
contained 
in 
collective 
bargaining 
agreements 
negotiated pursuant to Title 26, 
chapter 
9-B, 
by the State 
Employee Health Commission as provided in section 285-A. 
The 
master policy for the group health plan must be held by the 
Commissioner of Administrative and Financial Services. 
SUMMARY 
Part 
A 
requires 
health 
insurance 
carriers 
to 
offer 
a 
catastrophic health plan as alternative coverage for each of its 
group 
health 
coverage 
plans. 
The 
bill 
requires 
the 
Superintendent of Insurance to define, by rule, the requirements 
of the catastrophic plan. 
The bill also requires that employers 
providing health insurance 
coverage to their employees offer 
their employees the option of choosing the catastrophic plan. To 
the extent allowed by federal and state law, 
the bill allows 
carriers and employers to establish health savings accounts in 
conjunction with the catastrophic plan. 
Part B requires the State Employee Health Insurance Program 
to offer a high-deductible health plan option compatible with 
health savings accounts. 
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