Sec. 1. 24-A MRSA §4315 is enacted to read:

§4315.__Coverage cancellation restricted

A carrier may not discontinue, suspend or cancel coverage to an enrollee solely on the basis of that enrollee's incarceration in any county jail facility.__This restriction on cancellation must be liberally construed.__Any cancellation of coverage that is coincident with incarceration and not directly attributable to causes unrelated to the circumstance of incarceration is a violation of the section.__If coverage under this section is provided through a managed care plan, a carrier may require that the services be rendered during any period of incarceration by a provider who contracts with the carrier.

Sec. 2. Application. The requirements of this Act apply to all policies, contracts and certificates executed, delivered, issued for delivery, continued or renewed in this State on or after January 1, 2004. For purposes of this Act, all contracts are deemed to be renewed no later than the next yearly anniversary of the contract date.

SUMMARY

This bill prohibits health insurance carriers from canceling coverage for enrollees who are incarcerated in county jail facilities solely on the basis of the enrollees' incarceration.