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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 at least | | $18,020,851 and in state fiscal year 2004-05 by the amount of at | | least $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 | | 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 | | negotiating 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. |
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| | | 2. The Commissioner of Human Services shall implement | | appropriate normalizing adjustments, no less than annually, to | | the public revenue component and the annual periodic interim | | payments, PIP, of each such hospital, consistent with the | requirements of Title XIX of the federal Social Security Act, to | offset the impact of any plan-related revenue reduction under | this section. If any payment made in accordance with this | subsection is subsequently determined to be subject to | recoupment, the State shall reimburse hospitals for all such | recoupment costs paid by a hospital | | financial participation is denied in any payments resulting from | | adjustments made pursuant to this subsection, the State may not | | recoup any such payments from the hospitals to which they were | | made. |
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| | | Sec. A-2. PL 2003, c. 451, Pt. Z, §1, sub-§§1, 2, 3 and 5 are amended to read: |
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| | | 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 Legislature to require negotiations to | | reduce such expenses beyond state fiscal year 2005. In | | undertaking such negotiations, |
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