LD 2029
pg. 1
LD 2029 Title Page An Act to Update and Amend the Preferred Provider Arrangement Act Page 2 of 12
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LR 1017
Item 1

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

 
Sec. 1. 24-A MRSA §601, sub-§20, as amended by PL 1993, c. 637, §13,
is further amended to read:

 
20. Preferred provider arrangement administrator. Preferred
provider organization arrangement administrator fees are:

 
A. Original registration

 
issuance fee$100; and

 
B. Annual renewal fee$100.

 
Sec. 2. 24-A MRSA §1901, sub-§1, as amended by PL 1997, c. 457, §28,
is further amended by adding at the end a new blocked paragraph
to read:

 
Notwithstanding any other provision of this section,
"administrator" includes any administrator of a preferred
provider organization required to register under this chapter
pursuant to section 2674-A.

 
Sec. 3. 24-A MRSA §2670, as enacted by PL 1985, c. 704, §4, is
amended to read:

 
§2670. Short title

 
This chapter may be cited as the "Preferred Provider
Arrangement Act of 1986."

 
Sec. 4. 24-A MRSA §2671, as amended by PL 1995, c. 332, Pt. P, §1,
is further amended to read:

 
§2671. Definitions

 
As used in this chapter, unless the context indicates
otherwise, the following terms have the following meanings.

 
1. "Administrator" means any person, partnership or
corporation, other than an insurer, health maintenance
organization or nonprofit health service organization a carrier,
that arranges, contracts with or administers contracts with a
provider in which beneficiaries are provided an incentive to use
the services of that a preferred provider arrangement.

 
1-A.__"Capitation" means a method of payment for health
services in which the health care practitioner, institutional
provider or downstream risk entity is paid in whole or part a
fixed dollar amount for each person served, without regard to


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