LD 1919
pg. 130
Page 129 of 225 An Act To Make Supplemental Appropriations and Allocations for the Expenditures... Page 131 of 225
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LR 2833
Item 1

 
*Sec. D-21. Calculation and transfer. Notwithstanding any other provision
of law, the State Budget Officer shall calculate the amount of
savings in Part B, section 1 for fiscal year 2003-04 that applies
against each Highway Fund account for all departments and
agencies from savings in the cost of health insurance from
hospital rate adjustments and shall transfer the calculated
amounts by financial order upon the approval of the Governor.
These transfers are considered adjustments to allocations in
fiscal years year 2003-04 and 2004-05. The State Budget Officer
shall provide the joint standing committee of the Legislature
having jurisdiction over appropriations and financial affairs a
report of the transferred amounts no later than January 15, 2005.

 
Sec. K-2. PL 2003, c. 20, Pt. FFF, §1 is amended to read:

 
1. The Commissioner of Administrative and Financial Services,
referred to in this section as "the commissioner," and any
insurance company or 3rd-party administrator, referred to in this
section as "the carrier," insuring or administering the state
employee health plan, referred to in this section as "the plan,"
shall jointly negotiate agreements with hospitals participating
in the carrier's provider network to reduce the expense incurred
by the plan in state fiscal year 2003-04 by the amount of
$18,020,851 and in state fiscal year 2004-05 by the amount of
$19,728,208. In undertaking such negotiations the carrier must
be deemed at all times to be the agent of the State. The
commissioner and the carrier acting at the direction of the
commissioner may offer or demand such terms and conditions as the
commissioner considers to be in the best interest of the State to
reduce the expense of the state employee health plan, including,
but not limited to, offering or demanding reductions in standard
hospital reimbursement rates, rebates and refunds and uniform
terms relating to such reductions, rebates or refunds. The
commissioner may not affect or seek to affect amounts paid to
hospitals relating to any other customer of the carrier.

 
Sec. K-3. PL 2003, c. 451, Pt. Z, §1 is amended to read:

 
1. The Chancellor of the University of Maine System, referred
to in this section as "the chancellor," and any insurance company
or 3rd-party administrator acting at the direction of the State,
referred to in this section as "the carrier," insuring or
administering the University of Maine System health plan for
employees and retirees, referred to in this section as "the
plan," shall negotiate agreements with hospitals participating in
the carrier's provider network to reduce the expense incurred by
the plan in state fiscal year 2003-04 by the amount of $2,250,000
and in state fiscal year 2004-05 by the amount of $2,250,000. It
is not the intent of the


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