Public Act 629 of 2008

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• Introduced by Rep. Hannah M. Pingree (D) on March 5, 2008, part A authorizes the Superintendent of Insurance to approve a pilot project to authorize health insurance carriers to offer individual health insurance products for young people under the age of 30. Part B establishes a reinsurance association for the individual health insurance market, without placing individuals in a separate risk association or providing coverage under different health plans than those available in the individual market. The Part also requires individual premium rates charged by a carrier during a rating period to not exceed 2.5 times the lowest individual rate charged by the carrier. This will lower rates for the younger demographic and limit rate increases on the older demographic. Part B also requires the Superintendent of Insurance to report yearly to the Legislature the impact of changes to the rating provisions in the Maine Revised Statutes, Title 24-A, section 2736-C and the establishment of the Maine Individual Reinsurance Association pursuant to Title 24-A, chapter 54, the total number of individuals enrolled in any health insurance product regulated by the Department of Professional and Financial Regulation, Bureau of Insurance and the numbers of previously uninsured individuals who have enrolled in any health insurance product regulated by the Bureau of Insurance. Part B also allows a carrier that offered individual health plans prior to July 1, 2009 to close its book of business and establish a separate community rate for those individuals applying for coverage under an individual health plan on or after July 1, 2009. A carrier must merge the closed book with its open book by July 1, 2012 or when the number of subscribers remaining in a carrier’s closed individual book of business is less than 25 percent of the carrier’s individual health plan subscriber total as of June 30, 2009, whichever is earlier. The Superintendent of Insurance shall develop rules regarding notice requirements and experience pooling in a carrier’s open book of business to ensure the availability of affordable options for individuals transitioning from the closed book of business. Part C removes limitations on the ability of Dirigo Health to adjust the subsidy to individuals to ensure affordability. Part D makes permanent the temporary voluntary cost containment targets on hospital consolidated operating margins and cost increases, which were initiated in Public Law 2003, chapter 469, Part F, section 1 and were reauthorized in Public Law 2005, chapter 394, section 4. Part E makes changes to the funding for the Dirigo Health Program. The Part repeals the savings offset payment and replaces it with a health access surcharge of 1.8% on paid claims. Part E also increases the tax on cigarettes from $2.00 to $2.50 a pack and equalizes the rate of tax on all other tobacco products by a change in the taxation of "little cigars" from the tobacco products tax to the cigarette tax and an increase in the tobacco products tax from 20% to 78% of the wholesale price on cigars, pipe tobacco and other smoking tobacco. Part E also requires that all of the revenues from the surcharge and the cigarette tax increases be credited to the Dirigo Health Enterprise Fund to support both the Dirigo Health Program and the Maine Individual Reinsurance Association. Twenty percent of monthly deposits received by the Dirigo Health Enterprise Fund will be transferred to the association. Part F requires that Dirigo Health submit quarterly reports on information regarding enrollment in the Dirigo Health Program. This Part also repeals the Dirigo Health Risk Pool. Part G corrects cross-references to reflect the changes made in the bill.
  • Referred to the Insurance and Financial Services Committee on March 5, 2008.
  • Motion by Rep. Patsy G. Crockett (D) on April 15, 2008, to ACCEPT REPORT A Ought to Pass as Amended. The motion passed in the House (82 to 62) on April 15, 2008. [Vote Details and Comments]
  • Amendment offered in the House on April 15, 2008. The amendment passed in the House by voice vote on April 15, 2008.
  • Amendment offered by Rep. John R. Brautigam (D) on April 15, 2008. The amendment passed in the House (96 to 43) on April 15, 2008. [Vote Details and Comments]
  • Amendment offered by Rep. John R. Brautigam (D) on April 15, 2008. The amendment passed in the House (72 to 69) on April 15, 2008. [Vote Details and Comments]
  • Amendment offered by Rep. Robert P. Walker (R) on April 15, 2008.
    • Motion by Rep. John R. Brautigam (D) on April 15, 2008, to INDEFINITELY POSTPONE House Amendment "A" (H-1012) to Committee Amendment "A" (H-914). The motion passed in the House (86 to 56) on April 15, 2008. [Vote Details and Comments]
• Passed in the House (76 to 68) on April 15, 2008. [Vote Details and Comments]
• Received in the Senate on April 15, 2008.
  • Amendment offered by Sen. Nancy B. Sullivan (D) on April 15, 2008. The amendment passed in the Senate (18 to 17) on April 15, 2008. [Vote Details and Comments]
  • Amendment offered by Sen. Elizabeth H. Mitchell (D) on April 15, 2008. The amendment passed in the Senate by voice vote on April 15, 2008.
• Passed in the Senate (18 to 17) on April 15, 2008. [Vote Details and Comments]
• Received in the House on April 15, 2008.
• Passed in the House (75 to 64) on April 15, 2008. [Vote Details and Comments]
• Received in the Senate on April 15, 2008.
• Passed in the Senate (18 to 17) on April 15, 2008. [Vote Details and Comments]
• Signed by Gov. John E Baldacci on April 16, 2008.