Sec. 1. 24-A MRSA §6910, sub-§2, as amended by PL 2005, c. 400, Pt. C, §8, is further amended to read:

2. Alternative nonprofit health care plan. If a health insurance carriers do not apply carrier or the board cancels or fails to renew a contract to offer and deliver Dirigo Health Program coverage, the board may have Dirigo Health provide access to health insurance by proposing the establishment of a nonprofit health care plan organized under Title 13-B and authorized pursuant to Title 24, chapter 19 and establishing an alternative organizational structure or by proposing the expansion of expanding an existing public plan. If the board proposes the establishment of a nonprofit health care plan or the expansion of an existing public plan, the board shall submit its proposal, including, but not limited to, a funding mechanism to capitalize a nonprofit health care plan and any recommended legislation to the joint standing committee of the Legislature having jurisdiction over health insurance matters. Dirigo Health may not provide access to health insurance by establishing a nonprofit health care plan or through an existing public plan without specific legislative approval.

SUMMARY

This bill allows the Board of Directors of Dirigo Health to cancel or not renew a contract with an insurance carrier to provide health care insurance to members of Dirigo Health. In the event of cancellation or nonrenewal of a contract to provide health care insurance under Dirigo Health by either the insurance carrier or the board, the board is authorized to establish an alternative organizational structure to provide health insurance coverage or to expand an existing public plan without seeking legislative approval.