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PUBLIC LAWS OF MAINE
First Regular Session of the 121st

CHAPTER 156
S.P. 301 - L.D. 905

An Act To Protect Employees if Their Employer Fails To Pay Premiums for Employer-sponsored Health Insurance

Be it enacted by the People of the State of Maine as follows:

     Sec. 1. 24 MRSA §2317-B, sub-§15-A is enacted to read:

     15-A. Title 24-A, section 2809-A, subsections 1-A and 1-B. Notice of cancellation and availability of individual coverage, Title 24-A, section 2809-A, subsections 1-A and 1-B;

     Sec. 2. 24-A MRSA §2809-A, sub-§1-A, ¶B, as repealed and replaced by PL 1995, c. 625, Pt. A, §25, is repealed.

     Sec. 3. 24-A MRSA §2809-A, sub-§1-A, ¶B-1 is enacted to read:

     Sec. 4. 24-A MRSA §2809-A, sub-§1-B, as enacted by PL 1997, c. 604, Pt. B, §3, is amended to read:

     1-B. Notification of availability of individual coverage. An insurer must provide forms to group policyholders and certificate holders as required in subsection 1-A for the purpose of informing terminating group members of their right to purchase any individual health plan available in this State. An adequate supply of forms must be provided to each group policyholder when the policy is issued and at least annually thereafter. The superintendent may prescribe the content of the form by routine technical rule pursuant to Title 5, chapter 375, subchapter II-A 2-A. The form must include at least the following:

     Sec. 5. 24-A MRSA §4209, sub-§6, as enacted by PL 1995, c. 189, §3 and affected by §4, is amended to read:

     6. Notification of cancellation. A health maintenance organization must provide by first class mail at least 10 days' prior notification of cancellation for nonpayment of enrollment charges according to this section. The notice must include the date of cancellation of coverage and the time period for exercising contract conversion rights. Notification is not required when the insurer has received written notice from the group contract holder that replacement coverage has been obtained.

Effective September 13, 2003, unless otherwise indicated.

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