PART B

Sec. B-1. Savings offset payments working group. The Superintendent of Insurance shall convene a working group to advise the Board of Directors of Dirigo Health, referred to in this section as "the board," as provided in this section.

1. Membership. The working group must include 5 members representing the interests of insurers, self-insured entities and 3rd-party administrators and 5 members representing the interests of Dirigo Health.

2. Convening of working group; schedule. The Superintendent of Insurance shall convene the first meeting of the working group. In order to complete its work in a timely fashion, the working group may make its recommendations in accordance with time frames discussed with the Joint Standing Committee on Insurance and Financial Services.

3. Duties. The working group shall make recommendations to advise the board on the following issues:

A. The definition of "subsidy" within the Dirigo Health Program;

B. The definition of "paid claims" for the purpose of using paid claims as the base for savings offset payment assessments on health insurance carriers, 3rd-party administrators and employee benefit excess insurance carriers;

C. The process for implementing and invoicing savings offset payment assessments based on the recommended definition of paid claims;

D. The board's proposed methodology for calculating aggregate measurable cost savings. This recommendation must be made no later than September 20, 2005; and

E. A funding strategy to cover Dirigo Health's administrative expenses. This recommendation must be made no later than December 31, 2005.

4. Technical assistance; facilitator. The Department of Professional and Financial Regulation, Bureau of Insurance shall provide technical assistance to the working group upon request.