An Act To Implement Task Force Recommendations Relating to Parity and Portability of Benefits for Law Enforcement Officers and Firefighters
Maine Legislature, Session 122, LD 1021
Committee Amendment CA_B_H1007 (House)
Amends: 5 MRSA §285

COMMITTEE AMENDMENT ,g.. to H.P. 706, L.D. 1021, Bill, "An 
Act To Implement Task Force Recommendations Relating to Parity 
and Portability of Benefits for 
Law Enforcement Officers 
and 
Firefighters" 
Amend the bill by striking out all of Part A and inserting 
in its place the following: 
'PART A 
Sec. A-I. 5 MRSA §285~ sub-§I-B. as amended by P&SL 1993, c. 
67, §1, is repealed and the following enacted in its place: 
I-B. 
Ineligibility. 
Except as provided in subsection II-A, 
members of the Maine Municipal Association, members of the Maine 
Education 
Association 
and 
employees 
of 
counties 
and 
municipalities 
and 
instrumentalities 
thereof, 
including 
g;uasi-municipal corporations, are not eligible to participate in 
the group health plan under this section. 
Sec. A-2. 5 MRSA §285, sub-§l1-A is enacted to read: 
II-A. 
Coverage for retired law enforcement officers and 
firefighters. 
A retired county or municipal 
law enforcement 
officer or retired municipal firefighter, as defined in section 
286-M, 
subsection 2, 
who participates in an employer-sponsored 
retirement program and, prior to July 1, 2007, was enrolled in a 
self-insured health benefits plan offered by the employing county 
Page l-LR0263(5) 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ~" to H.P. 706, L.D. 1021 
or municipality may, if the requirements of this subsection are 
met, enroll in a group health plan administered pursuant to this 
section 
that 
provides 
coverage 
for 
the 
retired 
county 
or 
municipal 
law 
enforcement 
officer 
or 
retired 
municipal 
fiiefighter effective no earlier than July 1, 2007. 
A. 
A retiree who fails to enroll in a group health plan 
pursuant to this subsection is not otherwise eligible to 
enroll in such a plan and is not eligible for the premium 
subsidy provided pursuant to this subsection for enrollment 
in any other health plan. 
Retirees may enroll themselves, 
their spouses or their dependents in a group health plan 
during the following time periods, as applicable. 
( 1) 
When the effective date of retirement from 
the 
county or municipality is on or before May 1, 2007, the 
retiree must enroll in the plan before July 1, 2007. 
(2) 
When 
the effective date of retirement from the 
county 
or municipality is after 
May 
1, 
2007, 
the 
retiree must enroll in the plan no later than 60 days 
following the effective date of retirement from the 
county or municipality. 
(3) Notwithstanding the requirements of subparagraphs 
(1) and (2), when the retiree, the retiree's spouse or 
the retiree's dependent experiences an involuntary loss 
of other health insurance coverage carried as of July 
1, 2007 or 60 days following the date of the retiree's 
retirement, whichever is later, the retiree may elect 
to enroll in the plan no later than 60 days after the 
effective 
date 
of 
the 
loss 
of 
that 
coverage. 
Involuntary loss of coverage does not include a loss of 
coverage arising as a result of nonpayment of premiums. 
B. 
Eligible persons enrolling in a group health plan in 
which the retiree enrolls pursuant to this subsection are 
responsible 
for 
the 
premium 
payment 
associated 
with 
participation in the plan to the extent such an obligation 
exists 
following 
application 
of 
any 
premium 
subsidy. 
Failure to remit premium payments in the manner required by 
the administration policies of the group health plan must 
~sult in disenrollment from the plan. 
~he S.tate shall pay a premium subsidy that equals the 
dollar 
amount equivalent to 
the highest 
premium 
subsidy 
provided in accordance with section 286-M, subsection 6 or 
45°'0 of the cost of the retiree's share of the individual 
premium for the standard plan identified and offered under 
the group health insurance plan in which the retiree enrolls 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT h" to H.P. 706, L.D. 1021 
pursuant to this subsection, whichever is less. A retiree 
electing to enroll a 
spouse or dependent in the plan is 
responsible 
for 
payment 
of 
100% 
of 
the 
cost 
of 
such 
coverage, 
in addition to that portion of 
the retiree's 
individual premium cost not contributed by the State. 
Sec. A-3. 5 MRSA c.13, sub-c. 3 is enacted to read: 
SUBCHAPTER 3 
HEALTH INSURAti<;;~_J?~~_~_~QR RETIRED LAW ENFORCEMENT 
OFFICERS AND FIREFIGHTERS 
§286-M. 
Retired~~JLMunicipal Law Enforcement Officers 
and Municipal Firefighters Health Insurance Program 
1~~q9IiPII~t-~lished. 
The Retired County and Municipal 
Law 
Enforcement 
Officers 
and 
Municipal 
Firefighters 
Health 
Insurance 
Program is established to provide health insurance 
cQverage to retired county and municipal law enforcement officer~ 
and retired municipal firefighters. 
2. 
Definitions. 
As used in this subchapter, the following 
terms hav_~e following me.9_.g_iP-9_~ 
A. 
"County or municipal law enforcement officer" means a 
person who by virtue of employment by a county or municipal 
government in the State is vested by law with the power to 
make arrests for crimes or serve criminal process, whether 
that power extends to all crimes or is limited to specific 
crimes. 
"Cou.n.tr-or municipal law enforcement officer" does 
not include a state or federal law enforcement officer. an 
attorney prosecuting for a county or municipal governme~~~ 
a reserve officer. 
B. 
"Dependent" means a spouse, an unmarried child under 19 
years of age, a child who is a student under 23 years of age 
and financially dependent upon the enrollee, a child of any 
age who is disabled and dependent upon the enrollee or a 
domes~~ner as defined in Title 24-A, section 2741-A. 
C. 
"Division" 
m~n.§_J:~.epartment of Administrative and 
Financial 
Services, 
Division 
of 
State 
Employee 
Health 
Insurance. 
D. 
"Enrollee" meanS a county or municipal law enforcement 
officer or municipal' firefighter who has enrolled in the 
program. 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ~" to H.P. 706. L.D. 1021 
E. 
"Fund" 
means 
the 
Firefighters 
and 
Law 
Enforcement 
Officers 
Health 
Insurance 
Program 
Fund 
established 
in 
subsection 7. 
F. 
"Group health plan" or "group health insurance plan" 
means any 
~mp].oyer-sponsored group health insurance plan, 
whether 
self-insured 
or 
fully 
insured, 
that 
provides 
coverage 
to 
eligible 
employees, 
retirees 
and 
their 
dependents. 
G. 
"Majority multiple-employer welfare 
arrangement" 
means 
the mUltiple-employer welfare arrangement, 
as 
defined in 
Title 
24-A, 
section 
6601, 
subsection 
5, 
in 
which 
the 
majority 
of 
state 
municipal 
government 
employees 
are 
~nrolled as of the effective date of this section. 
H. 
"Municipal 
fi~fight.er" me.~a person employed by a 
municipal fire department with the primary responsibility of 
aiding in the extinguishment of fires and includes a member 
~m~cy medical services line personnel but does not 
include a 
member of 
a 
volunteer firefighter association. 
For 
the 
purposes 
of 
this 
paragraph, 
"emergency 
medical 
services 
line 
personnel" 
means 
persons 
who 
are 
career 
employees employed full-time by a public sector agency or 
employer 
and 
whos~rimary responsibility is to provide 
emergency medical services. 
I. 
"Program" means 
the Retired County and Municipal 
Law 
Enforcement 
Officers 
and 
Municipal 
Firefighters 
Health 
Insurance Program established in this section. 
3. 
Eligibility 
for 
pro-m;:am 
coverage. 
A 
satisfies the eligibility criteria specified in this 
is eligible for coverage under the program as follows: 
A. 
The person must: 
person 
who 
subsection 
(1) 
Be a retired county or municipal law enforcement 
officer or a retired municipal firefighter; 
1£) 
Have, 
while actively employed as 
a 
county or 
municipal 
law 
enforcement 
officer 
or 
municipal 
firefighter, 
participated in the person's employer's 
health insurance plan or other fully-insured health 
insurance plan; and 
(3) 
Receive or be eligible to receive: 
(a) 
If retired from at least 25 years of service 
in __ a __ ~sition as 
a 
county 
or 
municipal 
law 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT £. to H.P. 706, L.D. 1021 
enforcement officer or a municipal firefighter, a 
retirement benefit from the Maine State Retirement 
System or a defined contribution retirement plan 
other than the United States Social Security Act; 
or 
(b) 
If retired from less than 25 years of service 
in 
a 
position 
as 
a 
county 
or 
municipal 
law 
enforcement officer or a municipal firefighter, a 
retirement benefit from the Maine State Retirement 
System or a defined contribution retirement plan 
other than the United States Social Security Act, 
as long as the benefit provided is at least 50% of 
average final compensation, with no reduction for 
early 
retirement 
and 
with 
or 
without 
a 
cost-of-living adjustment: or 
B. 
The person must be a dependent of a person meeting the 
criteria of paragraph A. 
4. 
Program administration. 
The program is administered by 
the division. 
The division shall: 
A. 
Enter 
into 
administrative 
arrangements 
with 
fully 
insured health insurance product vendors to implement the 
purposes of this section; 
B. 
Remit authorized premium subsidy payments for enrolled 
eligible 
persons 
and 
enrolled 
dependents 
to 
any 
fully 
insured group health insurance plans on a periodic basis, as 
established by agreements with the providers of those plans. 
The dollar value of the subsidy payment may vary with the 
premium cost of the benefit plan in which the enrollee 
participates: anQ 
C. 
Adopt rules to implement the purposes of this section, 
including 
the 
determination of 
the 
program 
subsidy 
for 
enrollees pursuant to subsection 6. 
Rules adopted under 
this subsection are routine technical rules as defined in 
chapter 375, subchapter 2-A. 
5. 
Enrollment. 
A county 
or 
municipal 
law 
enforcement 
officer, a municipal firefighter or a person retired from such a 
position is eligible to enroll in the program. 
An eligible 
person who 
fails to enroll in the program pursuant to this 
subsection is not otherwise eligible to enroll in the program and 
is not eligible for the premium subsidy provided pursuant to this 
section for enrollment in any other health plan. 
Notwithstanding 
the date of enrollment, insurance coverage is not effective until 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ~, to H.P. 706, L.D. 1021 
the date of retirement or July L 
2007, whichever occurs later. 
Eligible persons may enroll themselves, their spouses and their 
dependents in the program during the following time periods: 
A. 
When the effective date of hire of the eligible person 
is on or before November L 
2006, the eligible person must 
enroll in the program before January 1, 2007, subject to the 
enrollment and eligibility requirements of the applicable 
group health plan; 
B. When the effective date of hire of the eligible person is 
after Noyember L 
2006, the eligible person must enroll in 
the program no later than 60 days following the effective 
date of hire, 
subject to the enrollment and eligibility 
requirements of the applicable group health plan; or 
C. 
Notwithstanding paragraphs A and B, 
when the eligible 
person, 
the 
eligible 
person's 
spouse 
or 
the 
eligible 
person's dependent experiences an involuntary loss of other 
health insurance coverage carried as of January L 
2007 or 
days following the date of the eligible person's hire, 
whichever is later, the eligible person may elect to enroll 
in the program no later than 60 days after the effective 
date of the loss of that coverage, subject to the enrollment 
and eligibility requirements of the applicable group health 
plan. 
Inyoluntary loss of coverage does not include a loss 
of coverage arising as a result of nonpayment of premiums. 
6. 
Premiums; subsidy. 
Premiums for the program and the 
premium 
subsidy 
are 
subject 
to 
the 
provlslons 
of 
this 
subsection. 
Premium subsidies are not provided for supplemental 
health insurance coverage. 
A. 
An 
enrollee 
participating 
in 
the 
majority 
multiple employer welfare arrangement is responsible for the 
premium payment associated with the cost of the majority 
multiple-employer 
welfare 
arrangement 
benefit 
option 
in 
which the enrollee is participating, 
to the extent 
such 
premium obligations exist following the application of any 
premium subsidy authorized by law. 
An enrollee who fails to 
remit the premium payments as established and required by 
the majority mUltiple-employer welfare arrangement must be. 
disenrolled from the program. 
Beginning July L 
2007, the 
State shall provide a premium subsidy for enrollees in the 
form of a direct payment to the majority multiple-employer 
welfare arrangement for each enrollee. 
The level of the 
subiiiidy mUiiit egual 45"" of the individual premium cost for 
the enrollee and varies among enrollees depending upon the 
terms of the majority mUltiple-employer welfare arrangement 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT :/3J" to H.P. 706, L.D. 1021 
coverage 
plan in which 
each enrollee 
is participating. 
Enrollees are responsible for the balance of the applicable 
individual premium, as well as the total cost of the premium 
for 
any 
applicable 
dependent 
coverage, 
and 
shall 
make 
paYments directly to the majority multiple-employer welfare 
arrangement. 
B. 
Enrollees retiring from counties or municipalities that 
do not participate in the majority multiple-employer welfare 
arrangement but who are eligible and elect to participate in 
that 
county's 
or 
municipality's 
fully 
insured 
health 
benefits 
plan 
are 
responsible 
for 
the 
premium 
payment 
associated with the cost of that plan, to the extent such, 
premium obligations exist following the application of any 
premium subsidy authorized by law. 
An enrollee who fails to 
remit the premium payments as established and reguired by 
the 
fully 
insured 
plan 
must 
be 
disenrolled 
from 
the 
program. 
Beginning July 1, 2007, the State shall provide a 
premium subsidy for enrollees participating in fully insured 
health benefits plans pursuant to this subsection. 
This 
subsidy must be made in the form of.a direct payment to the 
enrollee's health benefits plan and must egual 
45% of the 
individual premium cost for the enrollee or a dollar amount 
eguivalent 
to 
the 
highest 
premium 
subsidy 
provided 
in 
accordance with paragraph A, 
whichever is less. A retiree 
electing to enroll a spouse or a dependent in the program is 
responsible for payment of 100% of such coverage in addition 
to that portion of the retiree's individual premium cost not 
contributed by the State. 
7. 
Fund established. 
The Firefighters and Law Enforcement 
Officers 
Health 
Insurance 
Program 
Fund 
is established 
as 
a 
nonlapsing, 
dedicated 
account 
administered 
by 
the 
division. 
Money appropriated by 
law for 
the purpose of paying premium 
subsidies must 
be 
deposited in the 
fund. 
Premium dividends 
accruing to the State, return of premiums resulting from risk 
reduction programs, 
active employee contributions pursuant 
to 
subsection 8 and any other receipts must be deposited into the 
fund to be used for the purposes of the program. The fund is a 
pooled 
account. 
Individual 
law 
enforcement 
officers 
and 
firefighters do not have a right to money deposited in the fund 
except to the extent premium subsidies are available to program 
enrollees. 
~-Yl2~contributions to the fund. The contributions of 
enrollees to the fund are governed by this subsection. 
A. 
Beginning 
January 
L 
2007, 
each 
enrollee 
who 
participates as 
an active employee in a 
retirement plan 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ~, to H.P. 706, L.D. 1021 
shall contribute 
1.5~ of that enrollee's gross wages to the 
fund. 
B. 
The employer of an enrollee required to contribute to 
the fund shall remit on a 
monthly basis that enrollee's 
contribution to the fund. 
9. 
Coverage under the program. 
The benefits, copayments 
and deductibles under the program are determined by the fully 
insured health benefits 
plan in 
which 
the 
retired enrollee 
participates. Pursuant to the rules of the applicable plan, 
a 
retired enrollee is required to participate in the same health 
insurance plan as the active employees of the unit of government 
from which the enrolled person has retired. 
Participation in any 
qualified health insurance plan is subject to the rules of that 
plan. 
10. 
Volunteer 
and 
call 
firefighters 
and 
reserve 
law 
enforcement 
officers. 
Po 
member 
of 
a 
volunteer 
or 
call 
firefighters' 
association in this State, as well as 
a 
person 
serving as a county or municipal law enforcement officer on a 
reserve basis, 
is eligible to participate in the program of 
health benefits coverage established pursuant to the eligibility 
criteria and other provisions set forth in Title 24-A, chapter 87 
if that person meets 
the eligibility requirements 
under 
that 
chapter. 
11. 
Report. 
The division shall submit a 
report to the 
joint standing committee of the Legislature having jurisdiction 
over 
insurance 
and financial 
services matters 
in the 
Second 
Regular 
Session 
of 
the 
124th 
Legislature, 
and 
biennially 
thereafter, on the status of the program, program participation 
and the financing of the program, including the status of the 
fund, expenditures from the fund, current and projected premium 
costs to the program and to program enrollees and a projection of 
funding needs for the next 
years. 
The report must provide 
options, based on projections of future need, for changing the 
method of funding 
any state-paid premium subsidy, if such 
a 
subsidy is authorized by law, and employee contributions. 
Sec. 
A-4. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
The 
following 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Firefighters 
and 
Law 
Enforcement 
Officers 
Health 
Insurance 
Program Fund 
Initiative: 
Allocates funds for an Employee Benefits Technician 
position effective January 1, 2007 and related All Other costs 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT~" to H.P. 706, L.D. 1021 
to 
administer 
the 
subsidy 
program 
for. health insurance 
for 
eligible retired firefighters and law enforcement officers. 
FIREFIGHTERS AND LAW ENFORCEMENT OFFICERS 
HEALTH INSURANCE PROGRAM FUND 
2005-06 
2006-07 
POSITIONS -
LEGISLATIVE COUNT 
0.000 
1. 000 
Personal Services 
$0 
$26,000 
All Other 
$0 
$55,000 
FIREFIGHTERS AND LAW ENFORCEMENT OFFICERS 
HEALTH INSURANCE PROGRAM FUND TOTAL 
$0 
$81,000' 
Further amend the bill in Part B in section 1 in p~ragraph D 
in the 3rd and 4th lines (page 4, lines 30 and 31 in L.D.) by 
striking out 
the 
fOllowing: 
subsection 1, 
paragraph Band 
inserting in its place the following: 
'subsection 3, paragraph 
A, subparagraph (3)' 
Further amend the bill in Part B in section 2 in paragraph E 
in the 3rd and 4th lines (page 4, lines 43 and 44 in L.D.) by 
striking out 
the 
following: 
subsection 
1, 
paragraph Band 
inserting in its place the following: 
'subsection 3, paragraph 
A, subparagraph (3)' 
SUMMARY 
This amendment, which is the majority report of the Joint 
Standing Committee on Labor, 
strikes Part A of the bill and 
replaces it with a new Part A that allows retired county and 
municipal 
law 
enforcement 
officers 
and 
retired 
municipal 
firefighters 
who 
are 
enrolled 
in 
a 
county 
or 
municipal 
self-insurance health coverage plan to 
join the state group 
health plan under certain circumstances and provides 
a 
state 
premium subsidy. 
Part A also creates the Retired County and 
Municipal 
Law 
Enforcement Officers and Municipal Firefighters 
Health Insurance Program, 
which provides for health insurance 
coverage when the retiree is eligible for a retirement benefit 
under 
certain conditions 
and 
participated in the 
county 
or 
municipal 
health 
plan 
while 
employed. 
The 
amendment 
also 
provides for a state subsidy, beginning July 1, 2007, equal to 
45% of the cost of insurance premiums, or dollar equivalents, for 
each eligible retiree. 
Health 
insurance 
coverage 
under 
the 
program is not effective until July 1, 
2007 or the date of 
retirement, whichever occurs later. 
Eligible persons, including 
retirees, whose date of hire is on or before November 1, 
2006 
must enroll in the plan before January 1, 2007. 
Eligible persons 
whose date of hire is after November 1, 2006 must enroll in the 
plan no later than 60 days following the effective date of hire. 
Effective 
January 
1, 
2007, 
each 
county 
and 
municipal 
law 
enforcement 
officer 
and 
each 
municipal 
firefighter 
who 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT.:B" to H.P. 706, L.D. 1021 
participates as an active employee in a retirement plan and who 
has enrolled in the program must contribute 1. 5~o of gross wages 
to 
a 
fund to offset the costs 
of 
the program. 
Members 
of 
volunteer or call firefighters' associations in this State, as 
well as persons serving as county or municipal law enforcement 
personnel on a reserve basis, are eligible to participate in the 
program of health benefits coverage established pursuant to the 
eligibility criteria and other provisions set forth in the Maine 
Revised Statutes, Title 24-A, chapter 87 as long as they meet the 
eligibility requirements under that chapter. 
It also adds 
an 
appropriations and allocations section to the bill. 
FISCAL NOTE RE@IRFD 
(See Attached). 
COMMITTEE AMENDMENT 
Revised: 04111106 waC!. 
LD 1021 
LR 0263(05) 
An Act To Implement Task Force Recommendations Relating to Parity and Portability of Benefits for 
Law Enforcement Officers and Firefighters 
Fiscal Note for Bill as Amended by Committee Amendment:f;" 
Committee: Labor 
Net Cost (Savings) 
General Fund 
Appropriations! Allocations 
General Fund 
Other Funds 
Revenue 
Other Funds 
State Mandate 
Fiscal Note Required: Yes 
Fiscal Note 
2005-06 
$0 
$0 
$0 
$0 
Current Cost - State Mandate 
2006-07 
$0 
$0 
$81,000 
$587,250 
Projections 
2007-08 
$3,413,255 
$3,413,255 
$109,392 
$1,230,876 
Projections 
2008·09 
$3,810,148 
$3,810,148 
$111,894 
$1,289,958 
New or Expanded Activity 
, Unit Affected 
Costs 
Requires counties and municipalities to collect contributions from participating 
Municipality 
Insignificant 
employees and remit these contributions to the State. The increase in workload to 
County 
Insignificant 
the counties and municipalities generated by these requirements is a state mandate 
pursuant to the Maine Constitution. The additional costs are expected to be 
insignificant. 
Fiscal Detail and Notes 
The bill's subsidy provisions would take effect July, 1,2007. Assumes a total subsidy cost beginning in fiscal year 
2007-08 of $4.5 million including: $3 million for the State's payment of a 45% subsidy toward the cost of health 
insurance for eligible, pre-Medicare, retired law enforcement officers and firefighters based on the following 
assumptions: approximately 950 participants at an estimated average subsidy cost of $265 per participant per month; 
and approximately $1.5 million per year for additional State Employee Health Program costs resulting from the 
enrollment of a portion of these participants in the State plan. The subsidy costs would be partially offset by the 1.5 % 
of salary assessment. 
LR0263(5) - Fiscal Note - Page 1 of 2 
Beginning January 1,2007, the bill provides for a 1.5% assessment to be paid by participating active law enforcement 
officers and fIrefighters to help offset the costs of the program. For the purposes of this fiscal note, it is assumed that 
90% of the estimated 2,900 active law enforcement officers and firefighters would participate, paying the 1.5% 
assessment on an average salary of $30,000. 
Provides a FY 2006-07 allocation of $81,000 from the Firefighters and Law Enforcement OffIcers Health Insurance 
Program Fund, an Internal Services Fund, for the costs associated with the start up and administration of the program 
including: $26,000 for the establishment of an Employee Benefits Technician position (beginning January 1, 2007) . 
and $55,000 for other costs related to start up and administration. 
Total Estimated Subsidy 
Estimated Administrative Costs 
Total Estimated Costs 
Total Estimated Collections from Assessment 
General Fund Subsidy Net of Assessments 
LR0263(5) - Fiscal Note - Page 2 of 2 
Projections 
2007-08 
$4,534,739 
$109,392 
$4,644,131 
($1,230,876) 
$3,413,255 
Projections 
2008-09 
$4,988,212 
$111,894 
$5,100,106 
($1,289,958) 
$3,810,148