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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. |
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| This subparagraph applies only to an employer applying | for group health insurance coverage as a 2-person group | on or after October 1, 2001. |
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| | Sec. 2. 24-A MRSA §4346, sub-§1, ¶G, as enacted by PL 2001, c. 708, §3, | is amended to read: |
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| G. "Small employer" means an eligible group as defined in | section 2808-B, subsection 1, paragraph D a person, firm, | corporation, partnership, association or subgroup engaged | actively in a business that employed an average of 50 or | fewer eligible employees during the preceding calendar year. |
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| | This bill clarifies the definition of "eligible group" as it | applies to small group health plans by specifying that a majority | of the employees in the group must be employed in the State. | This bill also changes a cross-reference in the Maine Consumer | Choice Health Plan to maintain the current definition of | "eligible group." |
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