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.