3.__Maximum savings offset payments on health insurance carriers and employee benefit excess insurance carriers.__Each health insurance carrier and employee benefit excess insurance carrier must pay a savings offset in an amount not to exceed 4.0% of annual health insurance premiums and employee benefit excess insurance premiums on policies issued pursuant to the laws of this State that insure residents of this State.__The savings offset payment may not exceed savings resulting from decreasing rates of growth in the State's health care spending and bad debt and charity care costs. The savings offset payment applies to premiums paid on or after July 1, 2005. Savings offset payments must reflect aggregate measurable cost savings, including any reduction or avoidance of bad debt and charity care costs to health care providers in this State, as a result of the operation of Dirigo Health and any increased enrollment due to an expansion in MaineCare eligibility occurring after June 30, 2004, as determined by the board consistent with subsection 1. A health insurance carrier and employee benefit excess insurance carrier may not be required to pay a savings offset payment on policies or contracts insuring federal employees.

4.__Determination of savings offset payments.__The board shall make reasonable efforts to ensure that premium revenue, or claims plus any administrative expenses and fees with respect to third- party administrators, is counted only once with respect to any savings offset payment.__For that purpose, the board shall require each health insurance carrier to include in its premium revenue gross of reinsurance ceded.__The board shall allow a health insurance carrier to exclude from its gross premium revenue reinsurance premiums that have been counted by the primary insurer for the purpose of determining its savings offset payment under this subsection.__The board shall allow each employee benefit excess insurance carrier to exclude from its gross premium revenue the amount of claims that have been counted by a third-party administrator for the purpose of determining its savings offset payment under this subsection. The board may verify each health insurance carrier, employee benefit excess insurance carrier and third-party administrator's savings offset payment based on annual statements and other reports determined to be necessary by the board.