Sec. 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 and C and D.

Sec. 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 vary the premium rate due to the health status of the individual only as permitted by this paragraph.

(1)__The carrier may have one or more classes of substandard rating and one or more classes of superstandard rating.

(2)__Applicants may be offered a substandard or superstandard rate based on health status, health history or healthy lifestyle.

(3)__The highest rating class may not exceed 150% of the lowest rating class.

(4)__The carrier may reduce the multiple that an individual is charged on any renewal date based on improved health status, but may never increase the multiple.

The superintendent may adopt rules setting forth appropriate methodologies regarding substandard and superstandard ratings based on health status, health history or healthy