00SENATE BILL NO. 178(title am)                                                                                           
01 "An Act increasing the number of eligible employees that constitute an employer                                         
02 group for purposes of providing small employer health insurance; amending the                                           
03 definition of `small employer'; and requiring an annual report from the Small                                           
04 Employer Health Reinsurance Association until 1999."                                                                    
05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
06    * Section 1.  AS 21.56.160(b) is amended to read:                                                                    
07  (b)  A small employer insurer that cannot offer coverage under (a)(3) of this                                         
08 section may not offer health insurance coverage in the applicable area to new cases of                                  
09 employer groups with more than 50 [25] eligible employees or to small employer                                        
10 groups until the later of 180 days following each refusal or the date on which the                                      
11 insurer notifies the director that it has regained capacity to deliver services to small                                
12 employer groups.                                                                                                        
13    * Sec. 2.  AS 21.56.250(23) is amended to read:                                                                      
14   (23)  "small employer" means a person, firm, corporation, partnership,                                               

01 or association actively engaged in business whose total employed work force consisted                                   
02 of, on at least 50 percent of its working days during the preceding 12 months, at least                                 
03 two but not more than 50 [25] eligible employees, the majority of whom are employed                                   
04 within the state; in determining the number of eligible employees, companies that are                                   
05 affiliated companies or that are eligible to file a combined tax return for purposes of                                 
06 federal taxation, are considered one employer; except as otherwise specifically                                         
07 provided, provisions of this chapter that apply to a small employer that has a health                                   
08 benefit plan continue to apply until the plan anniversary following the date the                                        
09 employer no longer meets the requirements of this definition;                                                           
10    * Sec. 3.  Section 11(e), ch. 39, SLA 1993, is amended to read:                                                      
11  (e)  Notwithstanding AS 21.56.070, enacted in sec. 5 of this Act, the board of                                        
12 directors of the Small Employer Health Reinsurance Association shall provide the                                        
13 report required under AS 21.56.070 to the director of the division of insurance                                         
14 annually until December 31, 1999 [1997].