An Act To Improve Health Insurance Transparency
Maine Legislature, Session 126, LD 0102
Committee: Insurance and Financial Services
Sponsors: GOODE, GRATWICK, CAMPBELL, COOPER, MORRISON, PRINGLE, SCHNECK, STUCKEY, TREAT
Amends: 1 MRSA §402, 24-A MRSA §2736-C, 24-A MRSA §2808-B

Legislative Document 
No. 102 
H.P. 84 
House of Representatives, January 24, 2013 
An Act To Improve Health Insurance Transparency 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative GOODE of Bangor. 
Cosponsored by Senator GRATWICK of Penobscot and 
Representatives: CAMPBELL of Newfield, COOPER of Yarmouth, MORRISON of South 
Portland, PRINGLE of Windham, SCHNECK of Bangor, STUCKEY of Portland, TREAT of 
Hallowell. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  1 MRSA §402, sub-§2, ¶F, as amended by PL 2009, c. 334, §2, is further 
amended to read: 
F.  Any advisory organization, including any authority, board, commission, 
committee, council, task force or similar organization of an advisory nature, 
established, authorized or organized by law or resolve or by Executive Order issued 
by the Governor and not otherwise covered by this subsection, unless the law, resolve 
or Executive Order establishing, authorizing or organizing the advisory organization 
specifically exempts the organization from the application of this subchapter; and 
Sec. 2.  1 MRSA §402, sub-§2, ¶G, as enacted by PL 2009, c. 334, §3, is 
amended to read: 
G.  The committee meetings, subcommittee meetings and full membership meetings 
of any association that: 
(1)  Promotes, organizes or regulates statewide interscholastic activities in public 
schools or in both public and private schools; and 
(2)  Receives its funding from the public and private school members, either 
through membership dues or fees collected from those schools based on the 
number of participants of those schools in interscholastic activities. 
This paragraph applies to only those meetings pertaining to interscholastic sports and 
does not apply to any meeting or any portion of any meeting the subject of which is 
limited to personnel issues, allegations of interscholastic athletic rule violations by 
member schools, administrators, coaches or student athletes or the eligibility of an 
individual student athlete or coach.; and 
Sec. 3.  1 MRSA §402, sub-§2, ¶H is enacted to read: 
H.  The Board of Directors of the Maine Guaranteed Access Reinsurance Association 
under Title 5, section 12004-G, subsection 14-H. 
Sec. 4.  24-A MRSA §2736-C, sub-§2-B, as amended by PL 2011, c. 364, §7, is 
further amended to read: 
2-B.  Rate filings; credible health plans.  Notwithstanding section 2736, subsection 
and section 2736-A, at the carrier's option, rate Rate filings for a carrier's credible block 
of individual health plans may must be filed in accordance with this subsection.  Rates 
filed in accordance with this subsection are filed for informational purposes unless rate 
review is required pursuant to the federal Affordable Care Act. 
A.  A carrier's individual health plans are considered credible if the anticipated 
average number of members during the period for which the rates will be in effect 
meets standards for full or partial credibility pursuant to the federal Affordable Care 
Act. The rate filing must state the anticipated average number of members during the 
period for which the rates will be in effect and the basis for the estimate.  If the 
superintendent determines that the number of members is likely to be less than 
needed to meet the credibility standard, the filing is subject to section 2736, 
subsection 1 and section 2736-A. 
B.  On an annual schedule as determined by the superintendent, the carrier shall file a 
report with the superintendent showing the calculation of rebates as required pursuant 
to the federal Affordable Care Act, except that the calculation must be based on a 
minimum medical loss ratio of 80% if the applicable federal minimum for the 
individual market in this State is lower.  If the calculation indicates that rebates must 
be paid, the carrier must pay the rebates in the same manner as is required for rebates 
pursuant to the federal Affordable Care Act. 
Sec. 5.  24-A MRSA §2736-C, sub-§5, as amended by PL 2011, c. 90, Pt. D, §3, 
is further amended to read: 
5.  Loss ratios.  Except as provided in subsection 2-B, for For all policies and 
certificates issued on or after the effective date of this section, the superintendent shall 
disapprove any premium rates filed by any carrier, whether initial or revised, for an 
individual health policy unless it is anticipated that the aggregate benefits estimated to be 
paid under all the individual health policies maintained in force by the carrier for the 
period for which coverage is to be provided will return to policyholders at least 65% of 
the aggregate premiums collected for those policies, as determined in accordance with 
accepted actuarial principles and practices and on the basis of incurred claims experience 
and earned premiums.  For the purposes of this calculation, any payments paid pursuant 
to former section 6913 must be treated as incurred claims. 
Sec. 6.  24-A MRSA §2808-B, sub-§2-A, ¶C, as amended by PL 2007, c. 629, 
Pt. M, §6, is further amended to read: 
C.  Rates for small group health plans must be filed in accordance with this section 
and subsections 2-B and 2-C for premium rates effective on or after July 1, 2004, 
except that the filing of rates for small group health plans are not required to account 
for any payment or any recovery of that payment pursuant to subsection 2-B, 
paragraph D and former section 6913 for rates effective before July 1, 2005. 
Sec. 7.  24-A MRSA §2808-B, sub-§2-B, as amended by PL 2011, c. 364, §15, is 
further amended to read: 
2-B.  Rate review and hearings.  Except as provided in subsection 2-C, rate Rate 
filings are subject to this subsection. 
A.  Rates subject to this subsection must be filed for approval by the superintendent. 
The superintendent shall disapprove any premium rates filed by any carrier, whether 
initial or revised, for a small group health plan unless it is anticipated that the 
aggregate benefits estimated to be paid under all the small group health plans 
maintained in force by the carrier for the period for which coverage is to be provided 
will return to policyholders at least 75% of the aggregate premiums collected for 
those policies, as determined in accordance with accepted actuarial principles and 
practices and on the basis of incurred claims experience and earned premiums. For 
the purposes of this calculation, any payments paid pursuant to former section 6913 
must be treated as incurred claims. 
B.  If at any time the superintendent has reason to believe that a filing does not meet 
the requirements that rates not be excessive, inadequate or unfairly discriminatory or 
that the filing violates any of the provisions of chapter 23, the superintendent shall 
cause a hearing to be held.  Hearings held under this subsection must conform to the 
procedural requirements set forth in Title 5, chapter 375, subchapter 4.  If a filing 
proposes an increase in rates in a small group health plan, the superintendent shall 
cause a hearing to be held at the request of the Attorney General. In any hearing 
conducted under this paragraph, the insurer has the burden of proving rates are not 
excessive, inadequate or unfairly discriminatory.  The superintendent shall issue an 
order or decision within 30 days after the close of the hearing or of any rehearing or 
reargument or within such other period as the superintendent for good cause may 
require, but not to exceed an additional 30 days.  In the order or decision, the 
superintendent shall either approve or disapprove the rate filing.  If the superintendent 
disapproves the rate filing, the superintendent shall establish the date on which the 
filing is no longer effective, specify the filing the superintendent would approve and 
authorize the insurer to submit a new filing in accordance with the terms of the order 
or decision. 
C.  When a filing is not accompanied by the information upon which the carrier 
supports the filing or the superintendent does not have sufficient information to 
determine whether the filing meets the requirements that rates not be excessive, 
inadequate or unfairly discriminatory, the superintendent shall require the carrier to 
furnish the information upon which it supports the filing. 
D.  A carrier that adjusts its rate shall account for the savings offset payment or any 
recovery of that savings offset payment in its experience consistent with this section 
and former section 6913. 
Sec. 8.  24-A MRSA §2808-B, sub-§2-C, as amended by PL 2011, c. 364, §16, is 
repealed. 
SUMMARY 
This bill restores the statutory process for advance review and prior approval of 
individual health insurance rates and repeals the changes to the rate review process for 
individual health insurance made by Public Law 2011, chapter 90. 
The bill also extends the same process for advance review and prior approval for 
small group health insurance rates. 
The bill also makes the proceedings of the Maine Guaranteed Access Reinsurance 
Association open to the public as provided in the Freedom of Access Act.