CHAPTER 400

S.P. 555 - L.D. 1577

An Act To Modify Savings Offset Payments and To Clarify

Certain Other Provisions of the Dirigo Health Act

Be it enacted by the People of the State of Maine as follows:

PART A

Sec. A-1. 24-A MRSA §2735-A, sub-§§1-A and 3 are enacted to read:

1-A.__Notice of rate filings or rate increase on existing policies renewed in calendar year 2006. Notwithstanding subsection 1, for existing policies renewed in calendar year 2006, an insurer offering individual health plans as defined in section 2736-C for plan years beginning in 2006 must provide written notice by first class mail of a rate filing to all affected policyholders at least 30 days before the effective date of any proposed increase in premium rates or any proposed rating formula or classification of risks or modification of any formula or classification of risks. The notice must also inform policyholders of their right to request a hearing pursuant to section 229 or a special rate hearing pursuant to section 2736, subsection 4 or Title 24, section 2321, subsection 5. The notice must show the proposed rate and state that the rate is subject to regulatory approval.__An increase in premium rates may not be implemented until 30 days after the notice is provided.

This subsection is repealed January 1, 2007.

3.__Notice of rate increase on new business for calendar year 2006. Notwithstanding subsection 2, for new business quoted in calendar year 2006 by an insurer offering individual health