Sec. 1. 24-A MRSA c. 33-A is enacted to read:

CHAPTER 33-A

BASIC CARE MEDICAL PLANS

§2761.__Definitions

As used in this chapter, unless the context otherwise indicates, the following terms have the following meanings.

1.__Basic care medical plan. "Basic care medical plan" or "plan" means a plan providing health care benefits in accordance with this chapter.

2. Basic care medical plan pool. "Basic care medical plan pool" or "pool" means a pool for distributing the risk among carriers as provided in section 2767.

3. Carrier. "Carrier" has the same meaning as in section 4301- A, subsection 3.

4. Eligible enrollee. "Eligible enrollee" means a person who, at the time of application and determination of eligibility for a basic care medical plan, has an annual income at 200% or below the federal non-farm income poverty level and has no other health insurance or health care coverage.

§2762.__Basic care medical plan benefits

Carriers may issue basic care medical plans in accordance with this chapter, and those plans must meet the following requirements.

1. Availability of coverage. Coverage must be available to all eligible enrollees beginning on or after January 1, 2006.

2. Mandatory managed care provisions.__The plan must include the following managed care provisions to control costs:

A. An exclusion for services that are not medically necessary or are not covered preventive health services; and

B. A procedure for preauthorization by the carrier or its designated utilization review entity.