An Act To Enable an Alternative Organizational Structure To Purchase Group Health Insurance for Its Employees
Maine Legislature, Session 127, LD 1517
Committee: Education and Cultural Affairs
Sponsors: HUBBELL, LANGLEY
Amends: 20-A MRSA §1001, 24-A MRSA §2803-A, 24-A MRSA §2804

Legislative Document 
No. 1517 
H.P. 1042 
House of Representatives, January 6, 2016 
An Act To Enable an Alternative Organizational Structure To 
Purchase Group Health Insurance for Its Employees 
(EMERGENCY) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative HUBBELL of Bar Harbor. 
Cosponsored by Senator LANGLEY of Hancock. 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, beginning in July 2017, under the federal Affordable Care Act, certain 
school administrative units with fewer than 50 employees will no longer be eligible to 
purchase insurance benefits through their current policy providers; and  
Whereas, without this legislation, certain employment contracts that include these 
benefits will have to be renegotiated and alternative organizational structures will be out 
of compliance with their governing interlocal agreements and state law; 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.  20-A MRSA §1001, sub-§14, ¶E, as reallocated by RR 2011, c. 1, §25, 
is amended to read: 
E.  In order to facilitate the competitive bidding process in procuring health insurance 
for a school administrative unit's employees under this subsection, a school 
administrative unit may request from the insurer providing health insurance coverage 
to its employees and retirees loss information concerning all of that school 
administrative unit's employees and retirees and their dependents covered under the 
school administrative unit's policy or contract pursuant to Title 24-A, section 2803-A.  
At the written request of the governing body of an alternative organizational 
structure, pursuant to Title 24-A, section 2803-A, an insurer providing health 
insurance coverage to the alternative organizational structure's member school 
administrative units' employees and retirees and their dependents shall provide loss 
information for all of those employees, retirees and dependents in employment 
classifications designated by the governing body of the alternative organizational 
structure.  The school boards of the alternative organizational structure's member 
school administrative units may authorize the governing body of the alternative 
organizational structure to contract for a single health insurance policy that is offered 
to all eligible employees and retirees of the alternative organizational structure and its 
member school administrative units and their dependents in one or more employment 
classifications.  If an alternative organizational structure contracts for a single health 
insurance policy that is offered to all eligible employees and retirees of the alternative 
organizational structure and its member school administrative units and their 
dependents in one or more employment classifications, the governing body of the 
alternative organizational structure shall provide notice to the insurer of the 
alternative organizational structure's election to contract for a single health insurance 
policy at least 6 months before the effective date of the policy.  The alternative 
organizational structure may not revoke a single health insurance policy under this 
paragraph for a period of 5 years after the effective date of the policy and shall 
provide notice of revocation at least 6 months before the effective date of the 
revocation. 
Sec. 2.  24-A MRSA §2803-A, sub-§2, as corrected by RR 2011, c. 1, §39, is 
amended to read: 
2.  Disclosure of basic loss information.  Upon written request, every insurer shall 
provide loss information concerning a group policy or contract to its policyholder, to a 
former policyholder or to a school administrative unit pursuant to Title 20-A, section 
1001, subsection 14, paragraph E within 21 business days of the date of the request.  This 
subsection does not apply to a former policyholder whose coverage terminated more than 
months prior to the date of a request.  Upon written request of the governing body of 
an alternative organizational structure, the insurer shall provide loss information for all of 
the alternative organizational structure's member school administrative units' employees 
and retirees and their dependents in employment classifications designated by the 
governing body pursuant to Title 20-A, section 1001, subsection 14, paragraph E within 
business days of the date of the request. 
Sec. 3.  24-A MRSA §2804, sub-§1, as repealed and replaced by PL 1981, c. 147, 
§2, is amended to read: 
1.   The employees eligible for insurance under the policy shall must be all of the 
employees of the employer, or all of any class or classes thereof. The policy may provide 
that the term "employees" includes the employees of one or more subsidiary corporations 
and the employees, individual proprietors, and partners of one or more affiliated 
corporations, proprietorships or partnerships if the business of the employer and of the 
affiliated corporations, proprietorships or partnerships is under common control. The 
policy may provide that the term "employees" includes the individual proprietor or 
partners if the employer is an individual proprietorship or partnership. The policy may 
provide that the term "employees" includes retired employees and directors of a corporate 
employer. A policy issued to insure the employees of a public body may provide that the 
term "employees" includes elected or appointed officials.  If authorized by the school 
boards of the alternative organizational structure's member school administrative units 
pursuant to Title 20-A, section 1001, an alternative organizational structure established 
pursuant to Title 20-A, section 1461-B may contract for group health insurance that is 
offered to all eligible employees and retirees of the alternative organizational structure 
and its member school administrative units and their dependents in one or more 
employment classifications. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill allows the governing body of an alternative organizational structure to 
obtain health insurance loss information for all of the alternative organizational structure's 
member school administrative units' employees and retirees and their dependents on an 
aggregate basis and to purchase a single health insurance policy that is offered to all 
eligible employees and retirees of the alternative organizational structure and its member 
school administrative units and their dependents.