An Act To Make Individual and Small Group Health Insurance More Affordable in Certain High-premium Counties
Maine Legislature, Session 130, LD 1331
Committee: Health Coverage, Insurance and Financial Services
Sponsors: STEWART, JACKSON, LUCHINI, MOORE, FAULKINGHAM, PERRY
Amends: 24-A MRSA §2736-C, 24-A MRSA §2808-B

Legislative Document
No. 1331
S.P. 428
In Senate, March 30, 2021
An Act To Make Individual and Small Group Health Insurance 
More Affordable in Certain High-premium Counties
Reference to the Committee on Health Coverage, Insurance and Financial Services 
suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator STEWART of Aroostook.
Cosponsored by Senators: President JACKSON of Aroostook, LUCHINI of Hancock, 
MOORE of Washington, Representatives: FAULKINGHAM of Winter Harbor, PERRY of 
Calais.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  24-A MRSA §2736-C, sub-§2, ¶C-1, as enacted by PL 2011, c. 90, Pt. A, 
§2, is amended to read:
C-1.  A carrier may vary the premium rate due to geographic area in accordance with 
the limitation set out in this paragraph.  For all policies, contracts or certificates that 
are executed, delivered, issued for delivery, continued or renewed in this State on or 
after July 1, 2012 between July 1, 2012 and December 31, 2022, the rating factor used 
by a carrier for geographic area may not exceed 1.5.  For all policies, contracts or 
certificates that are executed, delivered, issued for delivery, continued or renewed in 
this State on or after January 1, 2023 until December 31, 2023, the rating factor used 
by a carrier for geographic area may not exceed 1.35. For all policies, contracts or 
certificates that are executed, delivered, issued for delivery, continued or renewed in 
this State on or after January 1, 2024, the rating factor used by a carrier for geographic 
area may not exceed 1.25.
Sec. 2.  24-A MRSA §2808-B, sub-§2, ¶C-1, as enacted by PL 2011, c. 90, Pt. A, 
§7, is amended to read:
C-1.  A carrier may vary the premium rate due to geographic area in accordance with 
the limitation set out in this paragraph.  For all policies, contracts or certificates that 
are executed, delivered, issued for delivery, continued or renewed in this State on or 
after October 1, 2011 between October 1, 2011 and December 31, 2022, the rating 
factor used by a carrier for geographic area may not exceed 1.5.  For all policies, 
contracts or certificates that are executed, delivered, issued for delivery, continued or 
renewed in this State on or after January 1, 2023 until December 31, 2023, the rating 
factor used by a carrier for geographic area may not exceed 1.35. For all policies, 
contracts or certificates that are executed, delivered, issued for delivery, continued or 
renewed in this State on or after January 1, 2024, the rating factor used by a carrier for 
geographic area may not exceed 1.25.
Sec. 3.  Report on effect on health insurance premiums. The Superintendent 
of Insurance shall report on the difference in premium rates in each geographic rating area 
used by a carrier in this State to the joint standing committee of the Legislature having 
jurisdiction over health coverage, insurance and financial services matters by October 1, 
2022 for plan year 2022; by October 1, 2023 for plan year 2023; and by October 1, 2024 
for plan year 2024.  In the report, the superintendent shall include data for each geographic 
rating area comparing the premium rates and enrollment in individual and small group 
plans in the first 2 quarters of each plan year to the prior plan year.
SUMMARY
This bill reduces the maximum rating factor for geographic area that may be used by 
carriers to determine individual and small group health insurance premiums to 1.35 for plan 
year 2023 and to 1.25 for plan year 2024 and thereafter.  Under current law, the maximum 
rating factor for a geographic area is 1.5.
The bill also requires the Superintendent of Insurance to report on the difference in 
premium rates in each geographic rating area used by a carrier in this State to the joint 
standing committee of the Legislature having jurisdiction over health coverage, insurance 
and financial services matters for plan years 2022, 2023 and 2024.