3. Voluntary limits on costs. The following constraints are called for:

A. Each health care provider in this State is asked to voluntarily restrain increases in the charges imposed and the average payments assessed or accepted by that health care provider for the health care services provided by that health care provider to no more than 3% for a period of one year following the effective date of this section; and

B. Each health care insurer licensed in this State is asked to voluntarily limit the pricing of products sold in this State to that level that supports no more than a 3% underwriting gain for a period of one year following the effective date of this section.

4. Compliance. The State shall monitor compliance with the voluntary effort described in subsection 3. If, on a statewide basis, average charges or average payments for health care providers and average underwriting gain for insurance providers exceed 3% for the one-year period following the effective date of this section, the Governor's office shall develop plans for implementation of provider rate-setting systems, global budgeting systems and more stringent insurance rate regulation.

PART G

Sec. G-1. Medicare and veterans' health care. The Governor shall engage in active negotiations with the Federal Government to increase access to federally sponsored health services for veterans in this State and to increase the rates of Medicare reimbursement for the State's health care providers.

SUMMARY

Part A of the bill establishes Dirigo Health as an independent agency of State Government. It seeks to make affordable health insurance available to small businesses and individuals, provide additional assistance to employees and individuals with earnings below 300% of the federal poverty