Legislative Acts
Dan Bernier
With the legislature adjourning, the following are some bills of interest to NAIFA-ME members. LD 625 An Act to Phase out the Insurance Premium Tax on Annuities was carried over on the Special Appropriations Table. This bill, which many NAIFA-ME members are familiar with, would phase out the application of Maine’s premium tax for annuities. It passed the Taxation Committee unanimously and it was enacted in both the House and Senate, it then goes to the Special Appropriations Table to be funded as any bill that reduces taxes would. There was insufficient money to fund it so the Appropriations Committee voted to carry it over to the next year to see if there would be funding for it. This is still a good development. Two years ago, we did not make the carry over cut on bills on the appropriations table. This still does not mean it will get funded next year, but it is a vote that the Appropriations Committee deemed this bill worth funding. It is simply competing with other legislation for limited Government funds.
LD 260 An Act to Permit Disability Insurance be offered through the Surplus Lines Market was enacted and is Public Law Chapter 20. Soon insurance agents will be able to sell surplus lines disability insurance products in accordance with guidelines issued by the Bureau of Insurance.
LD 594 An Act to Promote Individual Savings Accounts through a Public Private Partnership was carried over to next year. This is legislation of some concern as it would represent government getting into the retirement savings business. As we have pointed out in the past, there is no problem with product availability for retirement savings and no need for the government to get into this business.
LD 1047 An Act to Prohibit Consideration of Naloxone Purchases in Life Insurance Underwriting is now Public Law 203. The bill in and of itself does not present a big problem as similar legislation has passed in several other states. This does represent a trend we are seeing of government getting more involved in life insurance underwriting which we will need to watch closely.
LD 1314 An Act to Extend Protections for Genetic Information is legislation which merely required informed consent before life insurance companies could rely upon information from some of the companies which market genetic tests. Life insurance companies do not view many of these companies who sell such tests as being reliable.
LD 1704 An Act to Establish the Securities of Restitution Assistance Fund for Victims of Security Violations was carried over to the next session. This will require some funding. It would be partially funded by five dollars out of the Licensing Fees but would also require some state funding.
LD 598 An Act Regulating Employee Benefits Excess Insurance was carried over to the next legislature. This deals with the growing sales of self-insurance in the small group market.
LD 1260 An Act Regarding Short-Term Limited Duration Health Plans is now Public Law Chapter 330. This bill places serious limitations on the sale of short-term health insurance policies. Essentially, they are only going to be able to be sold until the next open enrollment period. This is one of three bills we saw attacking short-term health insurance policies which have become controversial on a national level. We were lucky to get out of this legislative session without the policies being made completely illegal.
LD 1617 An Act to Create a Single Payer Health Care Program in Maine will be carried over to the next legislature. It will be interesting to see as we head towards the 2020 election, with the small group market in serious trouble what moves forward.
LD 1650 An Act to Strengthen Consumer Protections in Health Care was carried over to the next year. This would impose a strict community rating which would likely destroy the small group market. An Amendment was offered to the bill to bring Maine to a stricter rate and form filing procedure for medical insurance carriers. While the community rating provisions of this bill will likely be defeated next year, the real battle will likely be over the proposed amendment for stricter rate in form filing procedures. The problem is the more difficult you make it to file rates and forms, the more you actually reduce competition as it favors the largest insurer in the market and discourages innovation among insurance carriers.
LD 1755 An Act to Move Maine Towards Affordable Health Care for Everyone, would have the Maine Department of Health and Human Services request a wavier for a Medicaid buy in, so people who are not eligible for Medicaid may buy into the program.
There are many other bills that we are involved in that were defeated this session, but so this article does not go on to long we will leave it with those highlight bills. A full list of what we are following is available through the Association.
LD 260 An Act to Permit Disability Insurance be offered through the Surplus Lines Market was enacted and is Public Law Chapter 20. Soon insurance agents will be able to sell surplus lines disability insurance products in accordance with guidelines issued by the Bureau of Insurance.
LD 594 An Act to Promote Individual Savings Accounts through a Public Private Partnership was carried over to next year. This is legislation of some concern as it would represent government getting into the retirement savings business. As we have pointed out in the past, there is no problem with product availability for retirement savings and no need for the government to get into this business.
LD 1047 An Act to Prohibit Consideration of Naloxone Purchases in Life Insurance Underwriting is now Public Law 203. The bill in and of itself does not present a big problem as similar legislation has passed in several other states. This does represent a trend we are seeing of government getting more involved in life insurance underwriting which we will need to watch closely.
LD 1314 An Act to Extend Protections for Genetic Information is legislation which merely required informed consent before life insurance companies could rely upon information from some of the companies which market genetic tests. Life insurance companies do not view many of these companies who sell such tests as being reliable.
LD 1704 An Act to Establish the Securities of Restitution Assistance Fund for Victims of Security Violations was carried over to the next session. This will require some funding. It would be partially funded by five dollars out of the Licensing Fees but would also require some state funding.
LD 598 An Act Regulating Employee Benefits Excess Insurance was carried over to the next legislature. This deals with the growing sales of self-insurance in the small group market.
LD 1260 An Act Regarding Short-Term Limited Duration Health Plans is now Public Law Chapter 330. This bill places serious limitations on the sale of short-term health insurance policies. Essentially, they are only going to be able to be sold until the next open enrollment period. This is one of three bills we saw attacking short-term health insurance policies which have become controversial on a national level. We were lucky to get out of this legislative session without the policies being made completely illegal.
LD 1617 An Act to Create a Single Payer Health Care Program in Maine will be carried over to the next legislature. It will be interesting to see as we head towards the 2020 election, with the small group market in serious trouble what moves forward.
LD 1650 An Act to Strengthen Consumer Protections in Health Care was carried over to the next year. This would impose a strict community rating which would likely destroy the small group market. An Amendment was offered to the bill to bring Maine to a stricter rate and form filing procedure for medical insurance carriers. While the community rating provisions of this bill will likely be defeated next year, the real battle will likely be over the proposed amendment for stricter rate in form filing procedures. The problem is the more difficult you make it to file rates and forms, the more you actually reduce competition as it favors the largest insurer in the market and discourages innovation among insurance carriers.
LD 1755 An Act to Move Maine Towards Affordable Health Care for Everyone, would have the Maine Department of Health and Human Services request a wavier for a Medicaid buy in, so people who are not eligible for Medicaid may buy into the program.
There are many other bills that we are involved in that were defeated this session, but so this article does not go on to long we will leave it with those highlight bills. A full list of what we are following is available through the Association.