E. An individual with an income between 220% and 235% of the nonfarm income official poverty line is eligible for a subsidy of 40% of the premium rate for coverage under an individual catastrophic health plan.

F. An individual with an income between 235% and 250% of the nonfarm income official poverty line is eligible for a subsidy of 20% of the premium rate for coverage under an individual catastrophic health plan.

G. An individual with an income above 250% of the nonfarm income official poverty line is not eligible for a premium subsidy but may purchase coverage at the full premium rate for coverage under an individual catastrophic health plan.

4.__Payment of premium subsidies. The superintendent shall receive all funds appropriated for the purpose of providing premium subsidies for coverage under individual catastrophic health plans. Any funds appropriated may be used only for the purpose described in this subsection, and any unexpended funds from a particular year must be carried forward for use in the next year. The superintendent shall transfer premium subsidies directly to the carrier for those individuals receiving coverage from that carrier who are eligible for a subsidy pursuant to subsection 3.

5.__Applicability of community rating; guaranteed issuance and guaranteed renewal.__A carrier offering an individual catastrophic health plan pursuant to this section must comply with the requirements of section 2736-C, subsections 2 and 3 relating to rating practices, guaranteed issuance and guaranteed renewal.

6. Continuity of coverage.__An individual insured under an individual catastrophic health plan pursuant to this section qualifies for continuity of coverage pursuant to chapter 36.

SUMMARY

This bill provides premium subsidies based on income to individuals covered under catastrophic health plans. Those individuals with incomes at or below 200% of the poverty line and

up to 250% of the poverty line qualify for a premium subsidy on a sliding-scale basis. The bill defines an individual catastrophic health plan as a health plan providing comprehensive benefits that imposes a deductible of $2,500.