Whereas, the State seeks to protect all its residents from significant financial hardship due to major illness or accident; and

Whereas, the State's current health insurance market is in crisis and premiums are unaffordable for too many state residents; and

Whereas, this legislation intends to pool the insurance risk for catastrophic medical services across a broad population; and

Whereas, this legislation seeks to promote the development of affordable, noncatastrophic health insurance options for small and large employers as well as individuals; and

Whereas, this legislation aims to reduce cost shifting created by charity and bad debt and direct these savings toward reducing health insurance premium expenses; and

Whereas, this legislation recognizes that appropriate and quality-oriented management of medical services is necessary to ensure program sustainability; and

Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 24-A MRSA c. 54 is enacted to read:

CHAPTER 54

MAINE CATASTROPHIC HEALTH PROTECTION PLAN

§3901. Short title

This chapter may be known and cited as "the Maine Catastrophic Health Protection Plan."

§3902.__Maine Catastrophic Health Protection Plan

The Maine Catastrophic Health Protection Plan, referred to in this chapter as "the plan," is established to provide