| Be it enacted by the People of the State of Maine as follows: |
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| | Sec. 1. 36 MRSA §2513-C is enacted to read: |
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| §2513-C.__Tax on premiums of health maintenance organizations |
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| | For purposes of this chapter, a health maintenance | organization as defined in Title 24-A, section 4202-A, subsection | 10 and organized as a corporation under the Maine Business | Corporation Act is considered an insurance company and is subject | to taxation on premiums under this chapter as though it were an | insurance company transacting health insurance business. |
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| | Sec. 2. Revenue from tax on premiums of health maintenance organizations. All tax | revenue collected as a result of the enforcement of this Act must | be divided between the elderly low-cost drug program established | in the Maine Revised Statutes, Title 22, section 254 and the Cub | Care program established in Title 22, section 3174-T. |
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| | This bill makes for-profit health maintenance organizations | subject to the insurance premium tax. It also requires that the | tax revenue generated from the taxation of health maintenance | organizations be divided between the elderly low-cost drug | program and the Cub Care program. |
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