PART A

Sec. A-1. 24-A MRSA §2736-C, sub-§1, ¶B, as enacted by PL 1993, c. 477, Pt. C, §1 and affected by Pt. F, §1, is amended to read:

B. "Community rate" means the rate charged to all eligible individuals for individual health plans prior to any adjustments pursuant to subsection 2, paragraphs B-1, C and D.

Sec. A-2. 24-A MRSA §2736-C, sub-§2, as amended by PL 1999, c. 44, §1 and affected by §2, is further amended to read:

2. Rating practices. The following requirements apply to the rating practices of carriers providing individual health plans.

A. A carrier issuing an individual health plan after December 1, 1993 must file the carrier's community rate and any formulas and factors used to adjust that rate with the superintendent prior to issuance of any individual health plan.

B. A carrier may not vary the premium rate due to the gender, health status, claims experience or policy duration of the individual.

B-1.__A carrier may not vary the premium rate due to the health status of the individual except as permitted under this paragraph.

(1)__A carrier may vary the premium rate up to 30% below the community rate filed by the carrier for an individual based on the individual's maintenance of a healthy lifestyle.

(2)__A carrier may vary the premium rate up to 30% above the community rate filed by the carrier for an individual based on the individual's failure to maintain a healthy lifestyle.

The superintendent shall adopt rules setting forth the appropriate factors a carrier may consider in determining whether an individual maintains a healthy lifestyle.__These factors include, but are not limited to, smoking status, obesity, alcoholism or substance abuse and management of chronic conditions, including diabetes and high blood