LD 1174
pg. 3
Page 2 of 5 An Act Relating to Options for Health Insurance Coverage Page 4 of 5
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LR 1301
Item 1

 
6.__Annual deductible.__The costs of services, which must be
calculated based on a rate consistent with current, average
reimbursement levels in this State, associated with the
defined benefit coverage must be recorded toward the annual
deductible amount.__A minimum and maximum calendar year
deductible amount for the first year of operation must be
established by the plan for single subscribers and family
subscribers.__Between these limits, the plan shall establish
an administratively manageable set of tiers that represent, on
average, 30% of the individual's or family's adjusted gross
income as reported to the Treasurer of State for the calendar
year immediately preceding the date of the enrollee's
eligibility.__Subsequent to the first year of operation, these
minimum and maximum deductible amounts must increase at a rate
equal to the Consumer Price Index in the State for the
previous calendar year.__The accrual of deductible amounts
restarts each January 1st.__These deductible amounts can not
be changed without the approval of the Governor.

 
7.__Lifetime maximum.__The board shall establish a single
subscriber and family subscriber lifetime maximum, an amount
above which the enrollee is no longer required to satisfy an
annual deductible prior to receiving coverage.

 
8.__Community rating.__Notwithstanding the requirements of
sections 2736-C and 2808-B relating to community rating for
individual and small group health plans, a prospective and
actuarially determined community rate must be calculated
annually.__A single subscriber premium and a family subscriber
premium that are actuarially based on this community rate must
be established by the board.

 
9.__Premium payments.__All eligible residents are required
to participate in the plan.__Single subscriber or family
subscriber premium payments may be voluntarily paid on behalf
of an enrollee by an employer.__This subsection does not
require any self-insured employer plan to participate in
premium payments.__Compliance by a self-insured employer plan
is entirely voluntary.__In the event that there is no employer
contribution for an enrollee, single subscriber or family
subscriber premiums must be collected directly from the
enrollee by the State.

 
10.__Claims payments.__Upon satisfaction of the deductible,
the plan shall reimburse at a rate consistent with current
average reimbursement levels in the State.__If a health plan
or self-insured employer has incurred, for an enrollee,
medical costs eligible for reimbursement that are in excess of
the deductible, the plan shall reimburse the health plan or
self-insured employer, and this payment must be considered
full and complete.__Adjustments to this payment amount must be
made to reflect the expected efficiency and effectiveness of
the health


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