Sec. 1. 24-A MRSA §2805-A, sub-§1, as enacted by PL 1981, c. 147, §4, is amended to read:

1. The policy may insure members of the association or associations, employees thereof or employees of members or one or more of the preceding or all of any class or classes thereof for the benefit of persons other than the employees' employer, except that a group or subgroup of 50 or fewer members may not be insured under a policy issued to an association.

Sec. 2. 24-A MRSA §2808-B, sub-§2, ¶G is enacted to read:

G.__A carrier may not impose a surcharge on the premium rate applied to eligible groups of one member.

Sec. 3. 24-A MRSA §2808-B, sub-§6, ¶I, as enacted by PL 1993, c. 477, Pt. B, §3 and affected by Pt. F, §1, is repealed.

SUMMARY

This bill amends the laws relating to small group health insurance and does the following.

1. It prohibits groups with 50 or fewer members from obtaining health insurance through association plans.

2. It eliminates the provision that allows insurers to provide individual health insurance policies to sole proprietors.

3. It prohibits the imposition of surcharges on premiums applied to groups of one member.