Sec. 4. 5 MRSA §285, sub-§1, ķI is enacted to read:

I.__Any employee of a small employer with 50 or fewer employees.

Sec. 5. 5 MRSA §285, sub-§7, as repealed and replaced by PL 1997, c. 763, §1 and affected by §7, is amended to read:

7. Payment by State. Except as otherwise provided in this subsection, the State, through the commission, shall pay 100% of only the employee's share of the individual premium for the standard plan identified and offered by the commission and available to the employee as authorized by the commission, except for Legislators, for whom the State shall pay 50% of the health plan premium for dependent coverage. For any person appointed to a position after November 1, 1981 who is employed less than full time, the State shall pay a share of the employee's share reduced pro rata to reflect the reduced number of work hours. The State may not pay any portion of the health plan premium for a blind person eligible for the group health plan under subsection 1, paragraph H or for an employee of a small employer eligible for the group health plan under subsection 1, paragraph I. The health plan premium for an employee of a small employer eligible for the group health plan under subsection 1, paragraph I may be paid by the small employer, by a combination of employer and employee contribution or by the employee.

For persons who were first employed before July 1, 1991, the State shall pay 100% of only the retiree's share of the premiums for the standard plan identified and offered by the commission and available to the retiree, as authorized by the commission for persons who were previously eligible for this health plan pursuant to subsection 1, paragraph A and who have subsequently become eligible pursuant to subsection 1, paragraph G.

For persons who were first employed by the State after July 1, 1991, the State shall pay a pro rata share portion of only the retiree's share of the premiums for the standard plan identified and offered by the commission and available to the retiree, as authorized by the commission for persons who were previously eligible for this health plan pursuant to subsection 1, paragraph A and who have subsequently become eligible pursuant to subsection 1, paragraph G based on the total number of years of participation in the group health plan prior to retirement as follows:

Years of Participation State Portion

10 or more years 100% group

health plan

premium

9 but less than 10 years 90% group

health plan

premium

8 but less than 9 years 80% group

health plan

premium

7 but less than 8 years 70% group

health plan

premium

6 but less than 7 years 60% group

health plan

premium

5 but less than 6 years 50% group

health plan

premium

Less than 5 years No contribution

Pursuant to Title 20-A, section 12722, subsection 5, this subsection applies to participants in the defined contribution plan offered by the Maine Technical College System Board of Trustees under Title 20-A, section 12722.

SUMMARY

This bill makes employees of small employers with 50 or fewer employees eligible for group health plan coverage under the group plan offered to state employees. The bill requires that the premium for coverage under the plan must be paid by the small employer, by a combination of employer and employee contribution or by the employee.