CSHB 29(L&C): "An Act relating to health care insurance and to the Comprehensive Health Insurance Association."
00 CS FOR HOUSE BILL NO. 29(L&C) 01 "An Act relating to health care insurance and to the Comprehensive Health Insurance 02 Association." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 21.09.210 is amended by adding a new subsection to read: 05 (p) A qualified insurer is entitled to a premium tax credit under AS 21.55.220. 06 * Sec. 2. AS 21.55.010 is amended adding a new subsection to read: 07 (b) A member shall submit reports and provide information required by the 08 board or the director to implement this chapter as a condition of transacting business 09 in the state. 10 * Sec. 3. AS 21.55.020(c) is amended to read: 11 (c) In determining voting rights at association meetings, an association 12 member is entitled to vote in person or by proxy. The vote shall be a weighted vote 13 based on the association member's share of assessments as determined under 14 AS 21.55.220 [PREMIUMS FOR HEALTH INSURANCE FOR MAJOR MEDICAL
01 COVERAGE ON AN EXPENSE INCURRED BASIS, OR THE ASSOCIATION 02 MEMBER'S SUBSCRIBER FEES, DERIVED FROM OR ON BEHALF OF STATE 03 RESIDENTS IN THE PREVIOUS CALENDAR YEAR, AS DETERMINED BY 04 THE DIRECTOR]. 05 * Sec. 4. AS 21.55.220(c) is amended to read: 06 (c) Each member of the association shall share the losses due to claims 07 expenses of the state plans issued or approved for issuance by the association, and 08 shall share in the operating and administrative expenses incurred or estimated to be 09 incurred by the association incident to the conduct of its affairs. Claims expenses of 10 the state plan that exceed the premium payments allocated to the payment of benefits 11 shall be the liability of the members. Each member shall share in the claims expense 12 of the state plans and operating and administrative expenses of the association in an 13 amount equal to the ratio of the member's [TOTAL FEES FOR SUBSCRIBER 14 CONTRACTS OR] total major medical [HEALTH INSURANCE] premiums, 15 received from or on behalf of state residents, as divided by the total major medical 16 [SUBSCRIBER FEES AND HEALTH INSURANCE] premiums received by all 17 members from or on behalf of state residents, as determined by the director. 18 * Sec. 5. AS 21.55.220(d) is amended to read: 19 (d) The board shall make an annual determination of each member's liability, 20 if any, and may make an annual fiscal year end assessment if necessary. The board 21 may also [, SUBJECT TO THE APPROVAL OF THE DIRECTOR,] provide for 22 interim assessments against the members as may be necessary to assure the financial 23 capability of the association in meeting the incurred or estimated claims expenses of 24 the state plans and operating and administrative expenses of the association until the 25 association's next annual fiscal year end assessment. Payment of an assessment is due 26 within 30 days after [OF] receipt by a member of written notice of a fiscal year end or 27 interim assessment. A member who fails to pay a fiscal year end or interim assessment 28 as required in this subsection (1) shall pay a civil penalty to the director in the amount 29 of $100 for each day the member fails to pay the required assessment, and (2) may 30 have the member's certificate of authority revoked by the director. A member that 31 ceases to do [HEALTH INSURANCE] business in the state [, OR CEASES TO
01 OFFER SUBSCRIBER CONTRACTS IN THE STATE, DUE TO REVOCATION, 02 SUSPENSION, OR VOLUNTARY SURRENDER OF ITS CERTIFICATE OF 03 AUTHORITY,] remains liable for assessments until the board determines under (c) 04 of this section that no assessment is due [THROUGH THE CALENDAR YEAR 05 THAT THE HEALTH INSURANCE BUSINESS CEASED]. The board may decline 06 to levy an assessment against a member if the assessment would be minimal. 07 Assessments paid by a member are a general expense of the member. 08 * Sec. 6. AS 21.55.220 is amended by adding a new subsection to read: 09 (f) A member may offset 50 percent of the amount of the assessment under 10 this section as a premium tax credit reducing the premium tax payable by the member 11 under AS 21.09.210. The offset shall apply to the tax levied for the calendar year 12 following an annual determination of each member's liability under (d) of this section. 13 The offset may not reduce the premium tax payable by a member to less than zero or 14 create a premium tax credit for the member. An unused offset may be carried over to 15 the immediately following calendar year. 16 * Sec. 7. AS 21.55.500(14) is repealed and reenacted to read: 17 (14) "major medical" 18 (A) means health insurance or medical care coverage provided 19 on an expense incurred basis, including Medicare supplement insurance; 20 (B) does not include coverage for dental only, vision only, 21 long-term care, nursing home care, home health care, community-based care, 22 accident only, disability income, hospital confinement indemnity or other fixed 23 indemnity, or credit, specified disease or specified accident, or other 24 supplemental health insurance or coverage determined by the board not to 25 constitute major medical and approved by the director; 26 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 APPLICABILITY. The provisions of sec. 6 of this Act apply to offset the premium 29 tax payable under AS 21.09.210 on March 1, 2008, based on assessments for the previous 30 year's determination of each member's liability, and shall continue annually thereafter.