An Act To Redefine Geographic Association for Multiple-employer Welfare Arrangements
Maine Legislature, Session 129, LD 0368
Committee Amendment CA_A_S49 (Senate)
Amends: 24-A MRSA §2808-B, 24-A MRSA §6603

COMMITTEE AMENDMENT "/t " to S.P. 109, L.D. 368, Bill, "An Act To 
Redefine Geographic Association for Multiple-employer Welfare Arrangements" 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 24-A MRSA §2808-B, sub-§2, ,rE, as corrected by RR 2011, c. 1, §40, 
is amended to read: 
E. The superintendent may authorize a carrier to establish a separate community rate 
for an association group organized pursuant to section 2805-A or a trustee group 
organized pursuant to section 2806, as long as association group membership or 
eligibility for participation in the trustee group is not conditional on health status, 
claims experience or other risk selection criteria and all small group health plans 
offered by the carrier through that association or trustee group: 
(1) Are otherwise in compliance with the premium rate requirements of this 
subsection; and 
(2) Are offered on a guaranteed issue basis to all eligible employers that are 
members of the association or are eligible to participate in the trustee group 
except that a professional association may require that a minimum percentage of 
the eligible professionals employed by a subgroup be members of the association 
in order for the subgroup to be eligible for issuance or renewal of coverage 
through the association. The minimum percentage must not exceed 90%. For 
purposes of this subparagraph, "professional association" means an association 
that: 
(a) Serves a single profession that requires a significant amount of education, 
training or experience or a license or certificate from a state authority to 
practice that profession; 
(b) Has been actively in existence for 5 years; 
( c) Has a constitution and bylaws or other analogous governing documents; 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT "A "to S.P. 109, L.D. 368 (S -~ c.i) 
( d) Has been formed and maintained in good faith for purposes other than 
obtaining insurance; 
( e) Is not owned or controlled by a carrier or affiliated with a carrier; 
(g) Has at least 1,000 members if it is a national association; 200 members if 
it is a state or local association; 
(h) All members and dependents of members are eligible for coverage 
regardless of health status or claims experience; and 
(i) Is governed by a board of directors and sponsors annual meetings of its 
members. 
Producers may only market association memberships, accept applications for 
membership or sign up members in the professional association where the individuals 
are actively engaged in or directly related to the profession represented by the 
professional association. 
Except for employers with plans that have grandfathered status under the federal 
Affordable Care Act, this paragraph does not apply to policies, contracts or 
certificates that are executed, delivered, issued for delivery, continued or renewed in 
this State on or after January 1, 2014 until December 31, 2019. To the extent 
permitted under the federal Affordable Care Act, this paragraph applies to policies, 
contracts or certificates that are executed, delivered, issued for delivery, continued or 
renewed in this State on or after January 1, 2020. 
Sec. 2. 24-A MRSA §6603, sub-§1, 11B and D, as amended by PL 2001, c. 
570, §1, are further amended to read: 
B. &oept fer those assooiati0Rs meetmg the criteria of subseoti0R 1 A .. , must Must be 
established by a trade association,~ industry association,: association with employer 
members representing multiple trades, industries or professions: political subdivision 
of the State,~ religious organization~ or professional association of employers or 
professionals that has a constitution or bylaws and that has been organized and 
maintained in good faith for a continuous period of one year for purposes other than 
that of obtaining or providing insurance; 
D. May not be offered, advertised or available to employers or other members of the 
public generally, except as allowed under subsection I fL; 
Sec. 3. 24-A MRSA §6603, sub-§1-A, as enacted by PL 2001, c. 570, §2, is 
repealed.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
S~Y 
This amendment replaces the bill. The amendment repeals the provision authorizing 
a multiple-employer welfare arrangement based on geographic association and removes 
cross-references to that provision. 
The amendment authorizes a multiple-employer 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT" I+" to S.P.109,L.D. 368 {$-L{~ 
welfare arrangement by an association with employer members representing multiple 
trades, industries or professions. 
The amendment also restores the ability of the 
Superintendent of Insurance to authorize a separate community rate for fully insured 
association health plans for multiple employers. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 03/26/19 feac 
LD368 
LR 1260(02) 
An Act To Redefine Geographic Association for Multiple-employer Welfare Arrangements 
Fiscal Note for Bill as Amended by Committee Amendment 'ft" (5.-ljc1) 
Committee: Health Coverage, Insurance and Financial Services 
/ 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - Other Special Revenue Funds 
Fiscal Detail and Notes 
Any additional costs to the Bureau of Insurance within the Department of Professional and Financial Regulation from 
the provisions of this bill are expected to be minor and can be absorbed within existing budgeted resources. 
LR1260(02) - Fiscal Note - Page 1 of 1