or collective actions

Participation in the association, the establishment of rates, forms or procedures or any other joint or collective action, required by this chapter may not be the basis of any legal action criminal or civil liability or penalty against the association or any member insurer.

Sec. 7. Application for federal grant. Within 30 days of the effective date of this Act, the Superintendent of Insurance shall submit an application to the federal Department of Health and Human Services, Health Resources and Services Administration for a federal seed grant to support the creation and initial operation of the Comprehensive Health Insurance Risk Pool Association established in the Maine Revised Statutes, Title 24-A, chapter 54.

Sec. 8. Study of reinsurance. The Comprehensive Health Insurance Risk Pool Association established pursuant to the Maine Revised Statutes, Title 24-A, section 3904 shall conduct a study of the possibility of offering a reinsurance pool for the small group medical insurance market in order to spread the cost of high-risk individuals for the small group medical insurance market. The study must address the cost of the reinsurance pool, potential funding mechanisms and the effectiveness of a reinsurance pool. The association may address any other issues regarding a reinsurance pool that it determines are relevant in the study. The association shall submit its report to the joint standing committee of the Legislature having jurisdiction over health insurance matters by March 1, 2005.

Sec. 9. Effective date. Those sections of this Act that repeal the Maine Revised Statutes, Title 24-A, section 2736-C, subsection 3, paragraphs A and C take effect October 1, 2004.

Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.

SUMMARY

This bill creates the Comprehensive Health Insurance Risk Pool Association. The purpose of the association is to spread the cost of high-risk individuals among all health insurers. The bill funds the high-risk pool through an assessment on insurers. The bill requires the State to submit an application to the Federal Government for federal assistance to create a high- risk pool.