An Act To Restore Consumer Rate Review for Health Insurance Plans in the Individual Market
Maine Legislature, Session 127, LD 0243
Committee: Insurance and Financial Services
Sponsors: MELARAGNO, GRATWICK, BECK, BROOKS, FECTEAU, LIBBY
Amends: 24-A MRSA §2735-A, 24-A MRSA §2736-A, 24-A MRSA §2736-C, 24-A MRSA §3953

Legislative Document 
No. 243 
H.P. 175 
House of Representatives, February 3, 2015 
An Act To Restore Consumer Rate Review for Health Insurance 
Plans in the Individual Market 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative MELARAGNO of Auburn. 
Cosponsored by Senator GRATWICK of Penobscot and 
Representatives: BECK of Waterville, BROOKS of Lewiston, FECTEAU of Biddeford, 
Senator: LIBBY of Androscoggin. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  24-A MRSA §2735-A, sub-§1, as amended by PL 2011, c. 364, §1, is 
further amended to read: 
1.  Notice of rate filing or rate increase on existing policies.  An insurer offering 
individual health plans as defined in section 2736-C must provide written notice by first 
class mail of a rate filing to all affected policyholders at least 60 days before the effective 
date of any proposed increase in premium rates or any proposed rating formula, 
classification of risks or modification of any formula or classification of risks.  Except as 
otherwise provided in section 2736-C, subsection 2-B, the The notice must also inform 
policyholders of their right to request a hearing pursuant to section 229.  The notice must 
show the proposed rate and, unless otherwise provided in section 2736-C, subsection 2-B, 
state that the rate is subject to regulatory approval.  Except as otherwise provided in 
section 2736-C, subsection 2-B, the The superintendent may not take final action on a 
rate filing until 40 days after the date notice is mailed by an insurer.  An increase in 
premium rates may not be implemented until 60 days after the notice is provided or until 
the effective date under section 2736, whichever is later. 
Sec. 2.  24-A MRSA §2736-A, first ¶, as amended by PL 2011, c. 364, §2, is 
further amended to read: 
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.  If a filing proposes an increase in rates in an individual health plan as 
defined in section 2736-C, the superintendent shall cause a hearing to be held at the 
request of the Attorney General.  In any hearing conducted under this section, the insurer 
has the burden of proving rates are not excessive, inadequate or unfairly discriminatory. 
Sec. 3.  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. 4.  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 the minimum medical loss ratio 
satisfies the requirements for individual health plans in section 4319, 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. 5.  24-A MRSA §3953, sub-§2, ¶¶E and G, as enacted by PL 2013, c. 273, 
§3, are amended to read: 
E.  The board shall establish regular places and times for meetings and may meet at 
other times at the call of the chair. Meetings of the board must be open to the public 
and otherwise in compliance with Title 1, section 403. The board shall post notice of 
scheduled meetings, meeting agendas and minutes of meetings on a publicly 
accessible website maintained by the association. 
G.  The board shall establish a process for taking public comment at selected board 
meetings to be held at such time and place as the board may determine.  The 
opportunity for public comment must be made available not less often than quarterly.  
Except as specified in this paragraph, meetings of the board are not open to the 
public. 
Sec. 6.  Application.  Those sections of this Act that amend the Maine Revised 
Statutes, Title 24-A, sections 2735-A, 2736-A and 2736-C apply to individual health plan 
rate filings submitted by an insurer or a carrier to the Department of Professional and 
Financial Regulation, Bureau of Insurance pursuant to Title 24-A, sections 2736 and 
2736-C for the 2016 plan or policy year and thereafter. 
SUMMARY 
This bill amends the rate review process for individual health insurance.  It requires 
advance review and prior approval of individual health insurance rates.  It requires the 
Superintendent of Insurance to hold a hearing if a filing proposes an increase in rates in 
individual health insurance plans.  It requires the Superintendent of Insurance to 
disapprove premium rates unless the minimum medical loss ratio satisfies the statutory 
requirements for individual health plans.  The changes apply to individual health plan rate 
filings submitted to the Department of Professional and Financial Regulation, Bureau of 
Insurance beginning with the 2016 plan or policy year.  The bill also requires meetings of 
the Board of Directors of the Maine Guaranteed Access Reinsurance Association to be 
open to the public.