An Act To Reduce the Cost of Health Insurance
Maine Legislature, Session 123, LD 1715
Committee: Insurance and Financial Services
Sponsors: McKANE, SA VIELLO, SNOWE-MELLO, RICHARDSON, SAVAGE, WALKER, MARRACHE
Amends: 24-A MRSA §2736-C, 24-A MRSA §2808-B, 24-A MRSA §2839-C, 24-A MRSA §4222-B

Legislative Document 
No. 1715 
H.P.1198 
House of Representatives, March 23, 2007 
An Act To Reduce the Cost of Health Insurance 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
Presented by Representative McKANE of Newcastle. 
/JJ~1J?~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representative SA VIELLO of Wilton, Senator SNOWE-MELLO of 
Androscoggin and Representatives: RICHARDSON of Warren, SAVAGE of Falmouth, 
WALKER of Lincolnville, Senator: MARRACHE of Kennebec. 
Prinled on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 24-A MRSA §2736-C, sub-§10 is enacted to read: 
10. Options included in all health coverage plans. All carriers offering individual 
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. Notwithstanding this subsection and any other provision of this Title, the 
catastrophic plan is not subject to the requirements of guaranteed issue, community 
rating, mandated health benefits and access standards for individual health plans. The 
superintendent shall adopt rules to further 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. 2. 24-A MRSA §2808-B, sub-§10 is enacted to read: 
10. Options included in all health coverage plans. All carriers offering small 
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. Notwithstanding this subsection and any other provision of this Title, the 
catastrophic plan is not subject to the requirements of guaranteed issue, community 
rating, mandated health benefits and access standards for small group health plans. The 
superintendent shall adopt rules to further 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. 3. 24-A MRSA §2839-C is enacted to read: 
§2839-C. Optional catastrophic health coverage plan 
An insurer offering group health insurance in this State shall offer, when offering and 
when renewing a health insurance policy, alternative coverage under a catastrophic plan 
defined in rules adopted by the superintendent. Notwithstanding this section and any 
other provision of this Title, the catastrophic plan is not subject to the requirements of 
mandated health benefits and access standards applicable to group health insurance. The 
superintendent shall adopt rules to further define the catastrophic plan that must be 
offered pursuant to this section. Rules adopted pursuant to this section 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. 4. 24-A MRSA §4222-B, sub-§22 is enacted to read: 
22. 
Section 2736-C, subsection 10, section 2808-B, subsection 10 and section 
2839-C, relating to an optional catastrophic health coverage plan, apply to health 
maintenance organizations. 
SUMMARY 
The bill requires health insurers to offer for sale qualified high-deductible health 
plans that may be used in conjunction with a health savings account. The bill exempts 
these health plans from the community rating, guaranteed issuance and mandated benefit 
requirements otherwise applicable to certain individual and group health plans.