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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.