Sec. K-2. PL 2003, c. 20, Pt. FFF, §1, sub-§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, sub-§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