Whereas, the United States Congress enacted and the President signed the Balanced Budget Act of 1997; and

Whereas, portions of that law preempt conflicting state laws; and

Whereas, it is in the best interest of the people of Maine for the State to retain its ability to regulate its Medicare supplement insurance market; and

Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

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

Sec. 1. 24-A MRSA §2849-B, sub-§1, as amended by PL 1997, c. 370, Pt. C, §4, is further amended to read:

1. Policies subject to this section. This section applies to all individual, group and blanket medical insurance policies except hospital indemnity, specified accident, specified disease, long-term care and short-term policies issued by insurers or health maintenance organizations. For purposes of this section, a short-term policy is an individual, nonrenewable policy issued for a term that does not exceed 12 months. This section does not apply to Medicare supplement policies as defined in section 5001, subsection 4.

Sec. 2. 24-A MRSA §2849-B, sub-§2, ¶¶A and B, as amended by PL 1997, c. 445, §25 and affected by §32, are further amended to read:

A. That person was covered under an individual or group contract or policy issued by any nonprofit hospital or medical service organization, insurer, health maintenance organization, or was covered under an uninsured employee benefit plan that provides payment for health services received by employees and their dependents or a governmental program, including, but not limited to, those listed in section 2848, subsection 1-B, paragraph A, subparagraphs (3) to (10). For purposes of this section, the individual or group policy under which the person is seeking coverage is the "succeeding policy." The group or individual contract or policy or the uninsured employee benefit plan that