4.__Contracting authority.__Dirigo Health has contracting authority and powers to administer Dirigo Health Insurance as set out in this subsection.

A.__Dirigo Health may contract with health insurance carriers licensed to sell health insurance in this State or other private or public third-party administrators to provide Dirigo Health Insurance.__In addition:

(1)__Dirigo Health shall issue requests for proposals from health insurance carriers;

(2)__Dirigo Health may include quality improvement, disease prevention, disease management and cost- containment provisions in the contracts with participating health insurance carriers or may arrange for the provision of such services through contracts with other entities;

(3)__Dirigo Health shall require participating health insurance carriers to offer a benefit plan identical to Dirigo Health Insurance, for which no Dirigo Health subsidies are available, in the general small group market;

(4)__Dirigo Health shall make payments to participating health insurance carriers under a Dirigo Health Insurance contract to provide Dirigo Health Insurance benefits to plan enrollees not enrolled in MaineCare;

(5)__Dirigo Health may set allowable rates for administration and underwriting gains for Dirigo Health Insurance;

(6)__Dirigo Health may administer continuation benefits for eligible individuals from employers with 20 or more employees who have purchased health insurance coverage through Dirigo Health for the duration of their eligibility periods for continuation benefits pursuant to the federal Consolidated Omnibus Budget Reconciliation Act, Public Law 99-272, Title X, Private Health Insurance Coverage, Sections 10001 to 10003; and

(7)__Dirigo Health may administer or contract to administer the United States Internal Revenue Code of 1986, Section 125 plans for employers and employees