In determining if a new business or a business that adds an owner or a new employee to payroll during the course of a year qualifies as an eligible group for 2- person coverage under this subparagraph, the employer must submit an affidavit stating that all employees meet the criteria in this subparagraph and that the documentation and forms required under this subparagraph will be provided to the carrier when payroll records become available, when ownership distribution forms become available or the first renewal date of the coverage, whichever date is earlier. A false affidavit or misrepresentation on an affidavit submitted by an employer may result in the loss of group coverage and repayment of claims paid. This subparagraph may not be construed to prohibit a carrier from recognizing an employer as an eligible group if the employer has not produced the documentation required in this subparagraph.

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.