This subparagraph applies only to an employer applying for group health insurance coverage as a 2-person group on or after October 1, 2001.

Sec. H-6. 24-A MRSA §4331, sub-§4, as enacted by PL 1999, c. 609, §20, is amended to read:

4. Downstream risk arrangement. "Downstream risk arrangement" means any compensation an arrangement between that transfers insurance risk from a carrier and to a downstream entity that may directly or indirectly have the effect of reducing or limiting services furnished to enrollees of the carrier.

Sec. H-7. 24-A MRSA §5011, sub-§2, as enacted by PL 1991, c. 740, §13, is amended to read:

2. Discounts. Issuers that do not vary rates for a standardized plan based on age, gender, health status, claims experience, policy duration, industry or occupation, and that do not refuse issue of that plan to any individual or group based on health status, may provide discounts on that plan to individuals who purchase coverage during their initial period of eligibility for enrollment in Medicare Part A by reason of age B at or after 65 years of age, subject to approval by the superintendent. The superintendent may adopt rules governing the appropriate use of discounts.

SUMMARY

Part A facilitates the updating of small group and individual health insurance policies by permitting limited minor changes at renewal with 60 days' notice to policyholders and insureds.