Sec. 1. 22 MRSA §1720 is enacted to read:

§1720.__Cost restraints

1.__Mandatory restraints.__In order to control the rate of growth of costs of health care and health care coverage, each hospital licensed under chapter 405 shall restrain inpatient cost increases, measured as expenses per case mix adjusted discharge, to no more than 3.5% of each hospital fiscal year.__Each hospital shall hold hospital-only and hospital-consolidated operating margins to no more than 3%.

2.__Voluntary restraints.__In order to control the rate of growth costs of health care and health care coverage, each health care practitioner, as defined in Title 24, section 2502, subsection 1-A, is asked to limit the growth of net revenue of the practitioner's practice to 3% for each fiscal year beginning on or after July 1, 2005.__Each health insurance carrier licensed in this State is asked to voluntarily limit the pricing of products it sells in this State to the level that supports no more than a 3% underwriting gain less federal taxes for the carrier's fiscal years beginning on or after July 1, 2005.

Sec. 2. PL 2003, c. 469, Pt. F, §1 is repealed.

SUMMARY

This bill repeals the voluntary requirement under the Dirigo Health laws asking hospitals to contain costs. The bill enacts a mandatory requirement that hospitals contain costs.