Sec. 1. 24-A MRSA §6913, sub-§§2, 3 and 6, as enacted by PL 2003, c. 469, Pt. A, §8, are amended to read:

2. Savings offset payments. For the purpose of providing the funds necessary to provide subsidies pursuant to section 6912 and support the Maine Quality Forum established pursuant to subchapter 2, the board shall establish a savings offset amount to be paid by health insurance carriers, employee benefit excess insurance carriers and third-party administrators, not including carriers and third-party administrators with respect to accidental injury, specified disease, hospital indemnity, dental, vision, disability, income, long-term care, Medicare supplement or other limited benefit health insurance, annually at a rate that may not exceed savings resulting from decreasing rates of growth in the State's health care spending and in bad debt and charity care costs. Payment of the savings offset amount must may not begin until 12 months after Dirigo Health begins providing health insurance coverage. The savings offset payment amount, as determined by the board, is the determining factor for inclusion of savings offset payments in premiums through rate setting review by the bureau. Savings offset payments must be made quarterly and are due not less than 30 days after written notice to the health insurance carriers, employee benefit excess insurance carriers and third-party administrators and must accrue interest at 12% per annum on or after the due date.

3. Maximum savings offset payments on health insurance carriers and employee benefit excess insurance carriers. Each health insurance carrier and employee benefit excess insurance carrier must shall pay a savings offset in an amount not to exceed 4.0% of annual health insurance premiums paid claims and employee benefit excess insurance premiums paid claims on policies issued pursuant to the laws of this State that insure residents of this State. The savings offset payment may not exceed savings resulting from decreasing rates of growth in the State's health care spending and bad debt and charity care costs. The savings offset payment applies to premiums paid on or after July 1, 2005 January 1, 2006. Savings offset payments must reflect aggregate measurable cost savings, including any reduction or avoidance of bad debt and charity care costs to health care providers in this State, as a result of the operation of Dirigo Health and any increased enrollment due to an expansion in MaineCare eligibility occurring after June 30, 2004, as determined by the board consistent with subsection 1. A health insurance carrier and employee benefit excess insurance carrier may not be required to pay a savings offset payment on policies or contracts insuring federal employees.