Sec. 1. 24-A MRSA §2736-D is enacted to read:

§2736-D.__Individual catastrophic plans; premium subsidies

1.__Definitions.__As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

A.__"Carrier" has the same meaning as in section 2736-C.

B.__"Individual catastrophic health plan" means an individual health plan providing comprehensive benefits, including preventive benefits, that imposes a $2,500 deductible.__The plan must meet the requirements for mandated coverage for specific health services, for specific diseases and for certain providers of health services under Title 24 and this Title applicable to individual health plans.

2.__Catastrophic health plan coverage.__The superintendent shall negotiate with carriers the premium rates charged for coverage under an individual catastrophic health plan, including premium rates for family coverage.__The superintendent shall contract through a competitive bidding process with at least one carrier that will offer individual catastrophic health plan coverage to individuals in all geographic regions of the State.__ The superintendent may contract with more than one carrier.

3.__Premium subsidies.__An individual is eligible for a premium subsidy to contribute to the premium rate for an individual catastrophic health plan in accordance with the requirements of this subsection.

A.__An individual who is eligible for or is receiving coverage under Medicaid or the Cub Care program may not receive a premium subsidy for coverage under an individual catastrophic health plan.

B.__An individual with an income at or below 200% of the nonfarm income official poverty line is eligible for a subsidy of 100% of the premium rate for coverage under an individual catastrophic health plan.

C.__An individual with an income between 200% and 210% of the nonfarm income official poverty line is eligible for a subsidy of 80% of the premium rate for coverage under an individual catastrophic health plan.