MaineState would fund Maine’s health insurance reinsurance program annually
The State would fund Maine’s reinsurance program each year based on a hypothetical charge on insurers’ premiums, starting in 2027.
What it does
The association must send its annual solvency review to the insurance superintendent and the Legislature’s health insurance committee with its annual report.
Starting in 2027, the association’s board must recommend whether to keep, change, or end an existing assessment or make other changes to support reinsurance. The committee may propose a bill after reviewing the recommendations.
The State would send the reinsurance association annual funding equal to a hypothetical 1.5% charge on insurers’ prior-year premiums. Insurers do not pay that charge under this section.
Argument forRegular state funding could help the association keep its reinsurance program running, which may help insurers cover high-cost claims.
Argument againstState funding would match a hypothetical 1.5% premium charge, which could commit General Fund money each year even though insurers would not pay that charge under this section.
More detail
The association must include its annual solvency review in its report to the insurance superintendent and the Legislature’s health insurance committee. The requirement applies to the Maine Guaranteed Access Reinsurance Association. The review is submitted as part of the annual report.
The association’s board must make recommendations in its annual report, and the committee may propose a bill after reviewing them. The recommendations concern whether to continue, change, or end an assessment allowed under another law, or whether other legal or structural changes are needed to support reinsurance. The committee may, but does not have to, report out a bill. The recommendations are due in the annual report beginning March 15, 2027, and every year after that.
The insurance superintendent must calculate a hypothetical assessment, and the State Controller must transfer matching General Fund money to the sustainability fund for the association. The calculation covers insurers that provide medical insurance on a fully insured basis. The transfer comes from the State’s unappropriated General Fund surplus. The hypothetical amount is based on a 1.5% assessment on the prior year’s premiums for insurers providing fully insured medical coverage; this section does not require insurers to pay that assessment. The superintendent sends the calculated amount to the association through the sustainability fund, which the association must use to operate the reinsurance program. The superintendent calculates the amount by March 1, 2027, and annually after that. The State Controller transfers the funding by July 1, 2027, and annually after that.
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Where it stands
- Introduced
- Passed 1st Chamber
- Became Law
- Died
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 29Died in Possession of the Senate when the Legislature adjourned Sine Die and was PLACED IN THE LEGISLATIVE FILES. (DEAD)Died
- Apr 6On motion by Senator ROTUNDO of Androscoggin PLACED ON THE SPECIAL APPROPRIATIONS TABLE pending ENACTMENT in concurrence.
- Apr 2Sent for concurrence. ORDERED SENT FORTHWITH.
- Apr 2PASSED TO BE ENACTED.Became Law
- Apr 2Ordered sent down forthwith.
- Apr 2Under suspension of the Rules, READ A SECOND TIME and PASSED TO BE ENGROSSED AS AMENDED BY Committee Amendment "A" (H-954), in concurrence.Minor
- Apr 2Committee Amendment "A" (H-954) READ and ADOPTED, in concurrence.Minor
- Apr 2READ ONCE.Minor
- Apr 2Report READ and ACCEPTED, in concurrence.
- Apr 2Sent for concurrence. ORDERED SENT FORTHWITH.
- Apr 2The Bill was PASSED TO BE ENGROSSED as Amended by Committee Amendment "A" (H-954).Minor
- Apr 2Under suspension of the rules CONSENT CALENDAR - SECOND DAY.
- Apr 2CONSENT CALENDAR - FIRST DAY
- Mar 31Reported Out - OTP-AM
- Mar 12Voted - OTP-AM
- Mar 12Work Session Reconsidered
- Jan 28Voted - OTP-AM
- Jan 28Work Session Held
- Jan 21Work Session Held - TABLED
- Jan 14Work Session Held - TABLED
- 2025
- Jun 25Carried over, in the same posture, to any special or regular session of the 132nd Legislature, pursuant to Joint Order SP 800.
- May 19Carry Over Approved
- May 16Carry Over Requested
- May 15Work Session Held - TABLED
- Mar 21Carried over, in the same posture, to the next special or regular session of the 132nd Legislature, pursuant to Joint Order SP 519.
- Mar 12Work Session Held - TABLED
- Feb 7The Bill was REFERRED to the Committee on HEALTH COVERAGE, INSURANCE AND FINANCIAL SERVICES pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint Rule 401.Minor
- Feb 7Received by the Clerk of the House on February 7, 2025.Introduced
HealthcareTaxes & BudgetMental Health