An Act To Create a Maine-based Independent Nonprofit Health Insurance Company
Maine Legislature, Session 123, LD 1082
Committee: Insurance and Financial Services
Sponsors: PRIEST, MARTIN, BRAUTIGAM, CONOVER, CROCKETI, GERZOFSKY, MILLER, PIEH, TREAT, WEBSTER

Legislative Document 
No. 1082 
H.P.800 
House of Representatives, March 6, 2007 
An Act To Create a Maine-based Independent Nonprofit Health 
Insurance Company 
(EMERGENCY) 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
Presented by Representative PRIEST of Brunswick. 
Cosponsored by Senator MARTIN of Aroostook and 
71l~ 
1I7.17ltl£~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: BRAUTIGAM of Falmouth, CONOVER of Oakland, CROCKETI of 
Augusta, GERZOFSKY of Brunswick, MILLER of Somerville, PIEH of Bremen, TREAT of 
Farmingdale, WEBSTER of Freeport. 
Printed on recycled paper 
I 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, current market conditions are having a negative impact on the 
. affordability and availability of health insurance coverage for residents of this State; and 
Whereas, the individual health insurance market appears to be monopolized by one 
carrier, and the health care delivery system in this State is being consolidated; and 
Whereas, health care costs in this State continue to be the highest in New England 
and among the highest in the Nation based on various cost indicators; and 
Whereas, recent proposed and approved premium rate increases in the individual 
and small group health insurance markets may force currently insured persons to drop 
their health insurance coverage on the basis of cost; and 
Whereas, the creation of a nonprofit health plan by the State may bring greater 
competition and choices for health insurance consumers in this State; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 24-A MRS A §6910, sub-§2, as amended by PL 2005, c. 400, Pt. C, §8, is 
further amended to read: 
2. Legislative approval of nonprofit health care plan. If health ins\iranee earriers 
do not apply to offer and deliver Dirigo Health Program eoverage, the The board may 
have Dirigo Health shall provide access to health insurance under Dirigo Health by 
proposing the establishment of establishing a nonprofit health care plan organized under 
Title I3-B and authorized pursuant to Title 24, chapter 19 or by proposing the expansion 
of an e~dsting p\iblie plan. If the board proposes the establishment of a nonprofit health 
eare plan or the expaAsion of an existing p\iblie plan, the board shall s\ibmit its proposal, 
inel\iding, b\it not limited to, a f\inding meehanism to eapitaliLle a nonprofit health eare 
plan and any reeommended legislation to the joint standing eommittee of the Legislat\ire 
having j\irisdietion over health ins\iranee matters. Dirigo H~alth ma)' not prolt'ide aeeess 
to health ins\iranee by establishing a nonprofit health eare plan or through an existing 
p\iblie plan without speeifie legislative approyal. 
The nonprofit health care plan 
established under this subsection must be authorized by the superintendent pursuant to 
Title 24, chapter 19 and begin providing health insurance coverage not later than October 
1, 2008. 
Sec. 2. Establishment of nonprofit health care plan. The Board of Directors 
of Dirigo Health, established in the Maine Revised Statutes, Title 24-A, section 6904, 
shall establish the nonprofit health care plan under the Maine Revised Statutes, Title 24-
A, section 6910, subsection 2 to offer residents of this State health insurance coverage 
under Dirigo Health as an alternative to those health insurance products currently offered 
by commercial health insurance carriers. The board shall consult with the Department of 
Professional and Financial Regulation, Bureau of Insurance and other state agencies as 
necessary to develop a plan of operation for the nonprofit health care plan. The board 
may contract for actuarial, financial and legal expertise to identify the funding needs for 
capital and adequate reserves and to identify the statutory requirements of Title 24, 
chapter 19 for nonprofit health care plans. The board shall submit a plan of operation for 
the nonprofit health care plan to the Superintendent of Insurance pursuant to Title 24, 
chapter 19 not later than March 1, 2008. 
Sec. 3. Authority to submit legislation. If the Board of Directors of Dirigo 
Health determines legislation is needed to carry out the purposes of this Act, including, 
but not limited to, legislation to establish a funding mechanism for the nonprofit health 
care plan, the board shall submit any recommended legislation to the Joint Standing 
Committee on Insurance and Financial Services not later than December 1, 2007. The 
Joint Standing Committee on Insurance and Financial Services shaIl submit any 
necessary legislation to the Second Regular Session of the 123rd Legislature. 
Emergency clause. 
In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This biIl directs the Board of Directors of Dirigo Health to establish a nonprofit 
health care plan to deliver health insurance coverage under Dirigo Health as an 
alternative to health insurance coverage offered by commercial health insurance carriers. 
The bill requires the board to consult with the Department of Professional and Financial 
Regulation, Bureau of Insurance and other state agencies as necessary and authorizes the 
board to contract for actuarial, financial and legal services. If the board determines that 
additional legislation is needed to establish the nonprofit health care plan, the bill requires 
that the recommended legislation be submitted to the Joint Standing Committee on 
Insurance and Financial Services by December 1, 2007. The bill authorizes the Joint 
Standing Committee on Insurance and Financial Services to submit legislation to the 
plan of operation for the nonprofit health care plan pursuant to the Maine Revised 
Statutes, Title 24, chapter 19 to the Superintendent of Insurance by March 1, 2008. 
Finally, the bill requires that the nonprofit health care plan begin offering coverage by 
October 1, 2008. 
Pae;C 2. •• 123LR1250(UI)-J