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CSHB 29(L&C)(title am): "An Act relating to the Comprehensive Health Insurance Association; granting a 50 percent premium tax credit for assessments against members of the Comprehensive Health Insurance Association; requiring members to provide information to the association's board of directors or the director of the division of insurance; modifying voting rights for the association members by basing their exercise on a member's share of assessments; basing assessments on major medical premiums; modifying the manner of determining members' liabilities for losses; and changing the definition of "major medical" coverage for purpose of state health insurance and providing for exclusions to major medical coverage."

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