C.__All funds remaining in the fund at the end of the fiscal year must be reported to the Legislature by January 1st of the following year and may be used, by vote of the Legislature, to expand the coverage of services paid for by the plan.

D.__Expenditures from the fund are authorized for payments to participating providers for health care services rendered, payments to enrollees from the Enrollee Hardship Fund established in subsection 2 and payments for administration of the fund, the plan and the agency.

2. Enrollee Hardship Fund.__The Enrollee Hardship Fund is established as part of the fund to provide financial assistance to enrollees for whom the premium for a primary health care policy is a hardship based on income. The agency shall adopt rules for income eligibility of enrollees, the amount of financial assistance available and the application process for enrollees.

3.__Budget.__The annual administrative costs for the agency and for all administrative aspects of the plan may not exceed 5% of the total annual budget for the fund.__The agency shall implement cost-control measures to reduce administrative costs and eliminate unnecessary health care.__Cost-control measures may not be implemented to limit necessary health care.

PART B

Sec. B-1. 24 MRSA c. 19-A is enacted to read:

CHAPTER 19-A

MAINE NONPROFIT HEALTH INSURANCE COMPANY

§2381.__Purpose

The Maine Nonprofit Health Insurance Company, referred to in this chapter as "the company," is established to provide health insurance coverage to residents of this State and to promote competition in the State's health insurance marketplace.

§2382.__Establishment