Sec. 1. 36 MRSA §2513-C is enacted to read:

§2513-C.__Tax on premiums of health maintenance organizations

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.

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.

SUMMARY

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.