An Act To Require All State Employees To Carry State Health Insurance
Maine Legislature, Session 123, LD 0619
Committee: Insurance and Financial Services
Sponsors: SA VIELLO, CEBRA, LANSLEY, ROBINSON, COURTNEY
Amends: 5 MRSA §285, 5 MRSA §28, 24-A MRSA §6910

Legislative Document 
No. 619 
H.P.468 
House of Representatives, February 8, 2007 
An Act To Require All State Employees To Carry State Health 
Insurance 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
Presented by Representative SA VIELLO of Wilton. 
'7J1~ frI· 7lld£~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representatives: CEBRA of Naples, CRA Y of Palmyra, LANSLEY of 
Sabattus, ROBINSON of Raymond, Senator: COURTNEY of York. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 5 MRSA §285, sub-§2, as amended by PL 1991, c. 780, Pt. Y, §23, is 
further amended to read: 
2. Coverage. Each state employee to whom this section applies is eligible for a 
group health plan as provided in Title 24 A, sections 2802 to 2812, including major 
medical benefits or through a self funded alternative through the Dirigo Health Program 
pursuant to Title 24-A, section 6910, subsection 4, paragraph D. The provisions of the 
group insurance policy or policies or the self funded alternative must be determined, 
q 
insofar as the provisions are not inconsistent with terms and conditions contained in 
collective bargaining agreements negotiated pursuant to Title 26, chapter 9-8, by the 
State Employee Health Commission as provided in section 285-A. The master policy for 
the group health plan must be held by the Commissioner of Administrative and Financial 
Services. 
Sec. 2. 5 MRSA §285, sub-§3, as amended by PL 1987, c. 731, §3, is further 
lmended to read: 
3. Enrollment. Any employee eligible under this section may shall join within the 
irst 60 days of employment or during a declared open enrollment period. The filing of 
lecessary applications shall be ~ the responsibility of the employer. 
Effective dates 
II1der this section shall be are at the discretion of the commission. 
Sec. 3. 5 MRSA §285, sub-§5, as amended by PL 1995, c. 368, Pt. G, § 1, IS 
:'urther amended to read: 
5. Purchase of policies. The commission shall purchase, by competitive bidding, 
from one or more insurance companies, nonprofit organizations, 3rd party administrators 
or any organization necessary to administer and provide a health plan through the Dirigo 
Health Program pursuant to Title 24-A, section 6910, subsection 4, paragraph D, a pol icy 
_" 
or policies or contract, to provide the benefits specified by this section. The purchase of 
'27 
policies by the commission must be accomplished by use of a written contract that must 
be fully executed 'Nithin 90 calendar days of notification of bid acceptance from the 
commission to the insurer. 
In extenuating circumstances, the Commissioner of 
Administrative and Financial Services may grant a waiver to that 90 day limit. 
Notwithstanding this subsection, with the consent of the policyholder and of the insurer 
and at the sole discretion of the commission, existing policies of insurance covering at 
least 1,000 of the employees defined as eligible by this section may be amended to 
provide the benefits specified by this section and assigned to the Commissioner of 
Administrative and Financial Services for the benefit of all those eligible under this 
section. The company or companies or nonprofit organizations must be licensed under 
the laws of the State, .... ,hen applicable. The policy provisions are subject to and as 
provided for by the insurance laws of this State, when applicable. Notv,'ithstanding any 
other provisions of law, the term of a contract executed with a successful bidder may not 
exceed 3 years. 
Sec. 4. 5 MRS A §285, sub-§9, as enacted by PL 1989, c. 776, § 1, is repealed. 
Page I - 123LR1354(OI)-1 
Sec. S. 5 MRSA §28S, sub-§13, as enacted by PL 2005, c. 12, Pt. NNN, §1, is 
amended to read: 
13. 
Contract on pilot basis authorized. Notwithstanding the requirements of 
subsection 9, paragraph G, the The State may enter into a contract on a pilot basis that 
does not adhere to any geographic access requirements set forth in Title 24-A or rules 
adopted by the Superintendent of Insurance. 
The department shall report annually 
beginning January 15, 2006 to the joint standing committee of the Legislature having 
jurisdiction over insurance and financial services matters on its progress in establishing 
and operating a pilot program pursuant to this subsection. 
Sec. 6. 24-A MRSA §6910, sub-§4, ~D is enacted to read: 
II 
D. 
Dirigo Health shall contract with the State Employee Health Commission 
established in Title 5, section 285-A to arrange for health benefits coverage under a 
group health plan for eligible state employees pursuant to Title 5, section 285. 
Sec. 7. 
Application. 
This Act does not apply to any collective bargaining 
agreements negotiated pursuant to the Maine Revised Statutes, Title 26, chapter 9-8 by 
the State Employee Health Commission as established in Title 5, section 285-A in effect 
on the effective date of this Act until the expiration of those collective bargaining 
agreements. 
SUMMARY 
The bill requires that eligible state employees receive health coverage through the 
Dirigo Health Program. The bill does not apply to any health coverage plan negotiated 
pursuant to current collective bargaining agreements. 
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