Sec. A-3. 24-A MRSA §4222-B, sub-§21 is enacted to read:

21. Section 2736-C, subsection 10; section 2808-B, subsection 10; and section 2808-C, relating to the health coverage plan, apply to health maintenance organizations.

PART B

Sec. B-1. 5 MRSA §285, sub-§2, as amended by PL 1991, c. 780, Pt. Y, §23, is further amended to read:

2. Coverage. Each state employee to whom this section applies is eligible for a group health plan as provided in Title 24-A, sections 2802 to 2812, including major medical benefits or through a self-funded alternative. Beginning January 1, 2006, the State shall offer each state employee eligible for coverage under this section alternative coverage under a health insurance policy in conjunction with a health savings account in accordance with federal law. The provisions of the group insurance policy or policies or the self-funded alternative must be determined, insofar as the provisions are not inconsistent with terms and conditions contained in collective bargaining agreements negotiated pursuant to Title 26, chapter 9-B, by the State Employee Health Commission as provided in section 285-A. The master policy for the group health plan must be held by the Commissioner of Administrative and Financial Services.

SUMMARY

Part A requires health insurance carriers to offer a catastrophic health plan as alternative coverage for each of its group health coverage plans. The bill requires the Superintendent of Insurance to define, by rule, the requirements of the catastrophic plan. The bill also requires that employers providing health insurance coverage to their employees offer their employees the option of choosing the catastrophic plan. To the extent allowed by federal and state law, the bill allows carriers and employers to establish health savings accounts in conjunction with the catastrophic plan.