A. The board shall calculate savings offset payments as a percentage of paid claims, as defined by the board pursuant to subsection 10. The board shall make reasonable efforts to ensure that paid claims are counted only once with respect to any savings offset payment. The board may verify each health insurance carrier's, 3rd-party administrator's and employee benefit excess insurance carrier's savings offset payment based on annual statements and other reports the board determines to be necessary.

B. Maximum savings offset payments are as follows:

(1) For health insurance carriers, the savings offset payment may not exceed 4.0% of annual paid claims for health care on policies issued pursuant to the laws of this State that insure residents of this State;

(2) For 3rd-party administrators, the savings offset payment may not exceed 4.0% of annual paid claims for health care for residents of this State; and

(3) For employee benefit excess insurance carriers, the savings offset payment may not exceed 4.0% of annual paid claims on employee benefit excess insurance policies, as defined in section 707, subsection 1, paragraph C-1, issued pursuant to the laws of this State that insure residents of this State.

C.__A health insurance and employee benefit excess insurance carrier may not be required to pay a savings offset payment on policies or contracts insuring federal employees.

D. Savings offset payments apply to claims paid for plan years beginning on or after January 1, 2006.

E. Savings offset payments may not begin until 12 months after Dirigo Health begins providing health insurance coverage;

F. Savings offset payments must be made quarterly and are due not less than 60 days after the close of the quarter and

with a minimum of 30 days' written notice by Dirigo Health to health insurance carriers, employee benefit excess