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must submit an affidavit stating that all employees meet  |  | the criteria in this subparagraph and that the  |  | documentation and forms required under this subparagraph  |  | will be provided to the carrier when payroll records  |  | become available, when ownership distribution forms  |  | become available or the first renewal date of the  |  | coverage, whichever date is earlier. A false affidavit or  |  | misrepresentation on an affidavit submitted by an  |  | employer may result in the loss of group coverage and  |  | repayment of claims paid. This subparagraph may not be  |  | construed to prohibit a carrier from recognizing an  |  | employer as an eligible group if the employer has not  |  | produced the documentation required in this subparagraph. |  
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 |   | | This subparagraph applies only to an employer applying  |  | for group health insurance coverage as a 2-person group  |  | on or after October 1, 2001. |  
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 |   |  | Sec. 2.  24-A MRSA §4346, sub-§1, ¶G, as enacted by PL 2001, c. 708, §3,  |  | is amended to read: |  
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 |   | G.  "Small employer" means an eligible group as defined in  |  section 2808-B, subsection 1, paragraph D a person, firm,  |  | corporation, partnership, association or subgroup engaged  |  | actively in a business that employed an average of 50 or  |  | fewer eligible employees during the preceding calendar year. |  
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 |   |  | This bill clarifies the definition of "eligible group" as it  |  | applies to small group health plans by specifying that a majority  |  | of the employees in the group must be employed in the State.   |  | This bill also changes a cross-reference in the Maine Consumer  |  | Choice Health Plan to maintain the current definition of  |  | "eligible group." |  
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