An Act To Modify the Calculation and Implementation Date of Savings Offset Payments under the Dirigo Health Act
Maine Legislature, Session 122, LD 1577
Committee Amendment CA_A-HA_D_H689 (House)

HOUSE AMENDMENT .:JJ" to COMMITTEE AMENDMENT 
L.D. 
1577, 
Bill, 
"An 
Act 
To 
Modify 
the 
Implementation Date of Savings Offset Payments 
Health Act" 
"A" to S. P . 555, 
Calculation 
and 
under the Dirigo 
Amend the amendment in Part A in section 11 in subsection 2 
in paragraph D in the last line (page 5, line 43 in amendment) by 
inserting after the following: "Forum." the following: 'Pursuant 
to section 6912, the cost of any experience modification program 
or 
similar 
arrangement 
must 
be 
considered 
a 
general 
administrative expense.' 
Further amend the amendment in Part C in section 8 in that 
part designated 
"§6910." 
in subsection 
in paragraph A by 
striking out all of subparagraphs (6) and (7) (page 15, lines 30 
to 44 in amendment) and inserting in their place the following: 
'(6) 
Dirigo 
Health 
may 
administer 
continuation 
benefits for eligible individuals from employers with 
or 
more 
employees 
who 
have 
purchased 
health 
insurance 
coverage 
through 
Dirigo 
Health 
for 
the 
duration of their eligibility periods for continuation 
benefits pursuant to the federal Consolidated Omnibus 
Budget Reconciliation Act, Public Law 99-272, Title X, 
Private Health Insurance Coverage, Sections 10001 to 
10003; aRe. 
(7) 
Dirigo 
Health 
may 
administer 
or 
contract 
to 
administer the United States Internal Revenue Code of 
1986, Section 125 plans for employers and employees 
participating 
in 
Dirigo 
Health, 
including 
medical 
expense 
reimbursement 
accounts 
and 
dependent 
care 
reimbursement accountsT; and 
HOUSE AMENDMENT 
HOUSE AMENDMENT .j)" to COMMITTEE AMENDMENT "A" to S.P. 555, L.D. 
1577 
This 
(8) 
After December 
31, 
2006, 
Dirigo Health may not 
include in its contracts with carriers or 3rd-party 
administrators any experience modification program or 
other similar arrangement in which payments are made by 
Dirigo Health to the carrier or 3rd-party administrator 
to be set aside to cover unanticipated variance in 
claims experience.' 
SUMMARY 
amendment 
modification program 
expense, 
thus 
not 
calculation. 
requires 
the 
cost 
of 
to be considered a general 
includable 
in 
the 
savings 
an 
experience 
administrative 
offset 
amount 
This amendment specifies 
Health 
may 
not 
include 
in 
3rd-party administrators any 
other similar arrangement. 
that after December 31, 2006 Dirigo 
its 
contracts 
with 
carriers 
or 
experience modification program or 
SPONSORED BY: 
____________ ~~ ~ 
(Representative GLYNN) 
~ 
TOWN: 
South Portland 
FISCAL ;";OT£ R£QliHi.,j 
(See attached) 
HOUSE AMENDMENT 
Approved: 06/13/05 frac 
LD 1577 
LR 1479(13) 
An Act To Modify the Calculation and Implementation Date of Savings Offset Payments under the 
Dirigo Health Act 
Fiscal Note for House Amendment-.:))" to Committee Amendment A" 
Sponsor: Rep. Glynn 
Fiscal Note Required: Yes 
Fiscal Note 
Potential current biennium revenue decrease - Other Special Revenue Funds 
Potential current biennium savings - Other Special Revenue Funds 
Undetermined future biennium impact - Other Special Revenue Funds 
Fiscal Detail and Notes 
Assumes the exclusion of experience modification program costs from the savings offset amount calculation could 
reduce savings offset payment revenue below amounts assumed for the Dirigo Health program's 2006-2007 Part 1 
Current Services budget baseline. Assumes the elimination of an experience modification program after December 
31, 2006 could result in a short-term reduction in spending, but the longer term implications are not known at this 
time. 
LR1479(13) - Fiscal Note - Page 1 of 1