An Act To Restore Competition to Maine's Health Insurance Market
Maine Legislature, Session 123, LD 1760
Committee Amendment CA_A_H667 (House)
Amends: 24-A MRSA §604-A

COMMITTEE AMENDMENT " ~ " to H.P. 1226, L.D. 1760, Bill, "An Act To 
Restore Competition to Maine's Health Insurance Market" 
Amend the bill by striking out all of section 1 (page 1, lines 2 to 16 in L. D.) and 
inserting the following: 
'Sec. 1. 24-A MRSA §604-A is enacted to read: 
§604-A. Premium assessment; health maintenance organizations 
1. Assessment. A health maintenance organization authorized to do business in this 
State pursuant to chapter 56 shall pay an assessment of 2% per year on all gross direct 
premiums on all policies, contracts and certificates written on residents in this State. The 
assessment imposed by this section applies to all gross direct premiums collected or 
contracted for on health maintenance organization policies, contracts and certificates 
issued or renewed on or after January 1, 2009. Beginning in 2010, each health 
maintenance organization shall file an annual report on or before February 1 st of each 
year with the superintendent containing a sworn statement of the gross direct premiums 
and shall pay to the superintendent an amount equal to 2% of those gross premiums. 
2. Dedicated account. The assessments paid pursuant to subsection 1 must be 
deposited in a special dedicated, non lapsing revenue account administered by the 
superintendent. 
3. Transfer to reinsurance pool. Beginning April 1, 2009, on a quarterly basis, the 
superintendent shall transfer assessments paid by health maintenance organizations 
pursuant to subsection 1 from the account established in subsection 2 to the Maine 
Individual High-risk Reinsurance Pool Association established in chapter 54.' 
Amend the bill in section 4 in paragraph D in subparagraph (4) in the 2nd line (page 
2, line lOin L.D.) by striking out the following: "2008" and inserting the following: 
'2009' 
COMMITTEE AMENDMENT 
~I~ 
I 
COMMITTEE AMENDMENT" A" to H.P. 1226. L.D. 1760 
Amend the bill in section 4 in paragraph 0 in subparagraph (5) in the 2nd line (page 
2, line 16 in L.D.) by striking out the following: "2008" and inserting the following: 
'2009' 
Amend the bill in section 5 by striking out all of paragraph G (page 2, lines 25 to 28 
in L.D.) and inserting the following: 
'G. A carrier that offered individual health plans prior to January 1, 2009 may close 
its individual book of business sold prior to January 1, 2009 and may establish a 
separate community rate for individuals applying for coverage under an individual 
health plan after January 1, 2009.' 
Amend the bill in section 6 in subsection 3 in paragraph A in subparagraph (2) in 
division (b) in the 2nd to 5th lines (page 3, lines 13 to 16 in L.D.) by blocking the 2nd 
sentence to subparagraph (2) 
Amend the bill in section 7 in §3903 in subsection 2 by striking out all of paragraph 
A and inserting the following: 
'A. The board consists of 11 members appointed as follows. 
(1) Six members appointed by the superintendent, of whom: 
Ca) Two members must be chosen from the general public and may 
not be associated with the medical profession, a hospital or an insurer; 
Cb) Two members must represent medical providers; 
Cc) One member must represent health insurance producers; and 
Cd) One member must represent a statewide association representing 
small businesses that receives the maiority of its funding from persons 
and businesses in the State. 
A board member appointed by the superintendent may be removed at any 
time without cause; and 
(2) Five members appointed by insurers belonging to the association, at least 2 
of whom are domestic insurers.' 
Amend the bill in section 7 in §3908 in subsection 1 in the 3rd line (page 10, line 37 
in L.D.) by striking out the following: "2008" and inserting the following: '2009' 
Amend the bill in section 7 in §3908 in subsection 1 in the 4th line (page 10, line 38 
in L.D.) by striking out the following: "2009" and inserting the following: '2010' 
Amend the bill in section 7 in §3912 in subsection 1 in the 3rd line (page 14, line I in 
L.D.) by striking out the following: "2008" and inserting the following: '2009' 
Amend the bill in section 7 in §3912 in subsection I in paragraph A in the 2nd line 
(page 14, line 4 in L.D.) by striking out the following: "2008" and inserting the following: 
'2009' 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT"~" to H.P. 1226, L.D. 1760 
Amend the bill in section 7 in §3912 in subsection 1 in paragraph C in the 2nd line 
(page 14, line 17 in L.D.) by striking out the following: "2009" and inserting the 
following: '2010' 
SUMMARY 
This amendment is the minority report of the committee. The amendment clarifies 
that assessments collected to support the Maine Individual High-risk Reinsurance Pool 
Association are first deposited in a dedicated fund administered by the Superintendent of 
Insurance and then transferred to the association. The amendment also clarifies the timing 
of the transfers to the association. The amendment removes 2 Legislators from the board 
of the association and adds 2 additional members appointed by insurers. 
The amendment also changes dates in the bill to reflect the time line based on 
enactment of the bill during the Second Regular Session of the 123rd Legislature. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Revised: 01/24/08 frac 
LD 1760 
LR 565(02) 
An Act To Restore Competition to Maine's Health Insurance Market 
Fiscal Note for Bill as Amended by Committee Amendment" A " 
Committee: Insurance and Financial Services 
Net Cost (Savings) 
General Fund 
Appropriations/Allocations 
Other Special Revenue Funds 
Revenue 
General Fund 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
2007-08 
$0 
$0 
$0 
$0 
2008-09 
$l35,781 
$0 
($l35,781) 
($7,297) 
Projections 
2009-10 
$1,227,525 
$16,022,197 
($1,227,525) 
$15,954,864 
Projections 
2010-11 
$1,424,540 
$16,823,307 
($1,424,540) 
$16,745,168 
The bill includes a new health maintenance organization assessment of 2% of gross direct premiums to help fund the 
newly established Maine Individual High-risk Reinsurance Pool. 
The fiscal note assumes the corporate tax revenue loss associated with the health maintenance organization assessment 
will reduce General Fund revenue by $135,781 in fiscal year 2008-09, reflecting initial reductions in quarterly 
corporate tax payments, increasing in subsequent years. 
The fiscal note assumes the assessment imposed on premiums beginning in 2009 will be collected by the 
Superintendent ofInsurance beginning in 2010 and will total approximately $16 million per year. It assumes an 
allocation of Other Special Revenue Funds of approximately $16 million per year will be required for the transfer 
(payment) of the assessment by the Superintendent of Insurance to the Maine Individual High-risk Reinsurance Pool, a 
nonprofit legal entity. 
Any additional costs to the Bureau of Insurance in the Department of Professional and Financial Regulation in 
implementing the bill can be absorbed by the bureau utilizing existing budget resources. 
LR0565(02) - Fiscal Note - Page 1 of 1