LD 1611
pg. 24
Page 23 of 73 PUBLIC Law Chapter 469 Page 25 of 73
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LR 2137
Item 1

 
5.__Failure to pay savings offset payments.__The
superintendent may suspend or revoke, after notice and hearing,
the certificate of authority to transact insurance in this State
of any health insurance carrier or employee benefit excess
insurance carrier or the license of any third-party administrator
to operate in this State that fails to pay a savings offset
payment. In addition, the superintendent may assess civil
penalties against any health insurance carrier, employee benefit
excess insurance carrier or third-party administrator that fails
to pay a savings offset payment or may take any other enforcement
action authorized under section 12-A to collect any unpaid
savings offset payments.

 
6.__Savings offset payments through reductions in growth in
State's health care spending and bad debt and charity care. On an
annual basis no later than April of each year, the board shall
prospectively determine the savings offset to be applied during
each 12-month period.__To make its determination, the board shall
use the criteria and reports described in subsections 7 and 8.
Annual offset payments must be reconciled to determine whether
unused payments may be returned to health insurance carriers,
employee benefit excess insurance carriers and third-party
administrators according to a formula developed by the board.
Savings offset payments must be used solely to fund the subsidies
authorized by section 6912 and to support the Maine Quality Forum
established in subchapter 2 and may not exceed savings from
reductions in growth of the State's health care spending and bad
debt and charity care.

 
7.__Demonstration of recovery of savings offset payments
through reduction in rate of growth in State's health spending
and bad debt and charity care.__In accordance with the
requirements of this subsection, every health insurance carrier
and health care provider shall demonstrate that best efforts have
been made to ensure that a carrier has recovered savings offset
payments made pursuant to this section through negotiated
reimbursement rates that reflect health care providers'
reductions or stabilization in the cost of bad debt and charity
care 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.

 
A.__A health insurance carrier shall use best efforts to
ensure health insurance premiums reflect any such recovery
of savings offset payments as those savings offset payments
are reflected through incurred claims experience in
accordance with subsection 9.

 
B.__During any negotiation with a health insurance carrier
relating to a health care provider's reimbursement agreement


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