Sec. 1. 24 MRSA c. 29 is enacted to read:

CHAPTER 29

COMMUNITY HEALTH PLANS

§3351.__Community Health Plan Demonstration Project

1.__Definitions.__As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

A.__"Fund" means the Community Health Plan Demonstration Project Guaranty Fund established in subsection 4.

B.__"Project" means the Community Health Plan Demonstration Project established in subsection 2.

C.__"Small employer" means a self-employed individual or a person that employs 4 or fewer individuals.

2.__Project established.__The Community Health Plan Demonstration Project is established as a pilot project to provide coverage for comprehensive health care services through a nonprofit community health plan corporation governed by a community board composed of health care providers, employers and individuals from Mount Desert Island.

A.__The target population of the project is small employers and self-insured employers providing employment on Mount Desert Island.__The project shall also explore the feasibility of including individuals eligible for state- supported health insurance programs among the target population.

B.__The purpose of this project is to determine the economic viability and health care quality associated with a community-based health plan providing access to affordable health care to participating purchasers through a purchasing alliance while at the same time providing a reasonable reimbursement to participating health care providers and maintaining local community control.

C.__The project may include, among other elements:

(1)__The creation of a purchasing alliance with defined risk pools, including one risk pool composed of small