An Act To Include Teachers in the State Employee Health Insurance Program
Maine Legislature, Session 125, LD 0857
Committee Amendment CA_A_S258 (Senate)

COMMITTEE AMENDMENT" A" to S.P. 261, L.D. 857, Bill, "An Act To 
Include Teachers in the State Employee Health Insurance Program" 
Amend the bill by striking out the title and substituting the following: 
'Resolve, To Study the Feasibility of Consolidating Health Plan Coverage for State 
Employees with Other Public Employees' 
Amend the bill by striking out everything after the title altd before the summary and 
inserting the following: 
'Sec. 1. 
Study of consolidated health plan; working group convened. 
Resoived: 
That, in accordance with this section, the State Employee Health 
Commission, referred to in this section as "the commission," shall convene a working 
group to study the feasibility of consolidating health plan coverage for state and public 
employees and retirees to leverage collective purchasing power in order to advance 
delivery and payment system reform to improve population health, enhance patient 
experience with the health care system and reduce per capita health care costs. 
1. The commission shall invite the participation of the following stakeholders as 
members of the working group: representatives of the University of Maine System, the 
Maine Education Association Benefits Trust, the Maine Municipal Employees Health 
Trust, the Maine School Management Association, labor unions, the Maine Health 
Management Coalition and the Department of Professional and Financial Regulation, 
Bureau of Insurance. 
2. 
The working group shall examine the feasibility of consolidating health plan 
coverage for state employees and retirees with health plan coverage for other public 
employees and retirees, including, but not limited to, municipal employees and retirees, 
public school employees and retirees and University of Maine System employees and 
retirees. In conducting the study, the working group shall: 
A. Study consolidated plans in other jurisdictions, such as the California Public 
Employees' Retirement System, the Washington State Health Care Authority and the 
Missouri Consolidated Health Care Plan; 
Page I - 125LR1622(02)-1 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT" A" to S.P. 261, L.D. 857 
B. Identify federal and state regulatory issues and potential barriers associated with 
merging multiple-employer welfare arrangements, Taft-Hartley health trust plans and 
single-employer plans; 
C. Conduct an actuarial analysis of the potential risk pool; 
D. Identify the reserves needed to self-fund a consolidated health plan; 
E. Recommend a model for the structure and governance of a consolidated health 
plan; 
F. Identify the resources required to administer a consolidated health plan, including 
actuarial, legal, medical director, finance, research and analysis services; and 
G. 
Recommend a source or sources of ongoing funding for administration of a 
consolidated health plan. 
3. To assist the working group, the commission may contract with consultants for 
health data collection and analysis, actuarial, legal and other consulting services. 
4. The commission shall submit a report on the working group's study, including the 
working group's recommendations and any suggested legislation, to the Joint Standing 
Committee on Appropriations and Financial Affairs and the Joint Standing Committee on 
Insurance and Financial Services no later than December 7, 2011. The joint standing 
committees may report out a bill based on the report to the Second Regular Session of the 
125th Legislature; and be it further 
Sec. 2. 
Appropriations and allocations. 
Resolved: 
That the following 
appropriations and allocations are made. 
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF 
Accident - Sickness - Health Insurance 0455 
Initiative: Appropriates funds on a one-time basis for the actuarial analysis and other 
costs to the State Employee Health Commission to study the feasibility of consolidating 
health plan coverage for state employees and other public employees. 
GENERAL FUND 
All Other 
GENERAL FUND TOTAL 
SUMMARY 
2011-12 
$315,800 
$315,800 
2012-13 
$0 
$0 
This amendment is the majority report of the committee and replaces the bill with a 
resolve requiring the State Employee Health Commission to convene a :vorking group to 
study the feasibility of consolidating health plan coverage for state employees and retirees 
with health plan coverage for other public employees and retirees. 
COMMITTEE AMENDMENT 
I. 
"-.. 
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COMMITTEE AMENDMENT" A" to S.P. 261, L.D. 857 
The amendment also adds an appropriation section to provide the funds for the 
actuarial analysis and other costs of the study. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 06/02111 
frac:. 
LD857 
LR 1622(02) 
An Act To Include Teachers in the State Employee Health Insurance Program 
Fiscal Note for Bill as Amended by Committee Amendment" A" S -25 8' 
Committee: Insurance and Financial Services 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2011-12 
FY 2012-13 
Projections 
FY 2013-14 
Projections 
FY 2014-15 
Net Cost (Savings) 
General Fund 
C Appropriations! Allocations 
General Fund 
Fiscal Detail and Notes 
$315,800 
$315,800 
$0 
$0 
$0 
$0 
$0 
$0 
Provides a one-time appropriation of $315,800 in 2011-12 to the Accident-Sickness-Health Insurance program in the 
Department of Administrative and Financial Services for the costs of the required actuarial analysis and other costs to 
the State Employee Health Commission to study the feasibility of consolidating health plan coverage for state 
employees and other public employees. Additional costs to the University of Maine System to participate in the study 
can be absorbed within existing budgeted resources. 
LR1622(02) - Fiscal Note - Page 1 of 1