Sec. 1. 5 MRSA §285, sub-§3-C is enacted to read:

3-C.__Retirees may decline coverage and reenroll.__A retiree eligible for a group health plan under subsection 1, paragraph G may elect to decline coverage under the plan and may reenroll in the plan at a later date pursuant to the provisions of this subsection.

A.__The retiree must demonstrate that the retiree was covered under this plan or another health insurance plan for at least 18 months immediately prior to reenrollment or that health insurance coverage for that person pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 under a prior plan has been exhausted.

B.__Any conditions on eligibility or coverage under subsection 1-A, paragraph D or E continue to apply at the time of reenrollment.

C. The retiree may reenroll in the same contract type in which the retiree was enrolled at the time the retiree declined coverage, except for any change in contract type allowed under subsection 3-B.

D.__An election under this subsection may be made only once.

This subsection does not apply to persons who are reemployed by the State following retirement as provided in Public Law 2001, chapter 442.

Sec. 2. Application. This Act applies to persons who elect to decline coverage on or after the effective date of this Act.

SUMMARY

This bill allows a retiree who is eligible for health insurance at the time of retirement to decline coverage for some period of time and then reenroll in the program at a later date without penalty. Any limitation on coverage of preexisting conditions would continue to apply. This bill may allow the State to save costs if a retiree otherwise eligible for state-paid insurance can obtain insurance from another source for a period of time.