An Act To Enhance the Administration of the State's Group Health Plan
Maine Legislature, Session 128, LD 1198
Committee: Insurance and Financial Services
Sponsors: FOLEY
Amends: 5 MRSA §285

Legislative Document
No. 1198
H.P. 835
House of Representatives, March 28, 2017
An Act To Enhance the Administration of the State's Group Health 
Plan
(EMERGENCY)
Submitted by the Department of Administrative and Financial Services pursuant to Joint 
Rule 204.
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative FOLEY of Wells.
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, the contract for the State's group health plan expired on June 30, 2016; 
and 
Whereas, the State is currently in the competitive bidding process for awarding the 
next group health plan for state employees; and 
Whereas, allowing the term of the State's next group health plan to be extended will 
enhance the administration of the plan and benefit the plan members; 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.  5 MRSA §285, sub-§5, as amended by PL 1995, c. 368, Pt. G, §1, is 
further 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, a policy or policies 
or contract, to provide the benefits specified by this section.  The purchase of policies by 
the commission must be accomplished by use of a written contract that must be fully 
executed within 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, when 
applicable.  The policy provisions are subject to and as provided for by the insurance laws 
of this State, when applicable.  Notwithstanding any other provisions of law, the term of a 
contract executed with a successful bidder may not exceed 3 years unless extended in 
one-year increments for up to 3 additional years. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved. 
SUMMARY 
This bill allows the term of the contract for the State's group health plan to be 
extended in one-year increments for up to 3 additional years.