LD 1760 LR 565(02)
An Act To Restore Competition to Maine's Health Insurance Market
Fiscal Note for Bill as Amended by Committee Amendment "     "
Committee: Insurance and Financial Services
Fiscal Note Required: Yes
Fiscal Note
2007-08 2008-09 Projections 2009-10 Projections 2010-11
Net Cost (Savings)
General Fund $0 $135,781 $1,227,525 $1,424,540
Other Special Revenue Funds $0 $0 $16,022,197 $16,823,307
General Fund $0 ($135,781) ($1,227,525) ($1,424,540)
Other Special Revenue Funds $0 ($7,297) $15,954,864 $16,745,168
Fiscal Detail and Notes
The bill includes a new health maintenance organization assessment of 2% of gross direct premiums to help fund the newly established Maine Individual High-risk Reinsurance Pool.  
The fiscal note assumes the corporate tax revenue loss associated with the health maintenance organization assessment will reduce General Fund revenue by $135,781 in fiscal year 2008-09, reflecting initial reductions in quarterly corporate tax payments, increasing in subsequent years.
The fiscal note assumes the assessment imposed on premiums beginning in 2009 will be collected by the Superintendent of Insurance beginning in 2010 and will total approximately $16 million per year.  It assumes an allocation of Other Special Revenue Funds of approximately $16 million per year will be required for the transfer (payment) of the assessment by the Superintendent of Insurance to the Maine Individual High-risk Reinsurance Pool, a nonprofit legal entity.
Any additional costs to the Bureau of Insurance in the Department of Professional and Financial Regulation in implementing the bill can be absorbed by the bureau utilizing existing budget resources.