H.B. 1563                                                     VETOES

(C) WHEN A CARRIER ELECTS NOT TO RENEW ALL HEALTH BENEFIT PLANS
IN THE STATE IN A PARTICULAR MARKET GROUP, WHETHER OFFERED THROUGH
OR OUTSIDE A REGIONAL HEALTH COOPERATIVE, THE CARRIER:

(1) SHALL GIVE NOTICE OF ITS DECISION TO THE AFFECTED
EMPLOYERS AND THE INSURANCE REGULATORY AUTHORITY OF EACH STATE IN
WHICH AN ELIGIBLE EMPLOYEE OR DEPENDENT RESIDES AT LEAST 180 DAYS
BEFORE THE EFFECTIVE DATE OF NONRENEWAL;

(2) AT LEAST 30 WORKING DAYS BEFORE THAT NOTICE, SHALL GIVE
NOTICE TO THE AFFECTED REGIONAL HEALTH COOPERATIVES AND THE
COMMISSIONER; AND .

(3) MAY NOT WRITE NEW BUSINESS FOR A 5 YEAR PERIOD BEGINNING
ON THE DATE OF NOTICE TO THE COMMISSIONER.

(D) WITHIN 7 DAYS FOLLOWING CANCELLATION OR NONRENEWAL OF A
HEALTH BENEFIT PLAN, THE CARRIER SHALL SEND, WRITTEN NOTICE TO EACH
ENROLLED EMPLOYEE OF ITS ACTION AND THE CONVERSION RIGHTS AVAILABLE
TO EACH ENROLLED EMPLOYEE UNDER §§ 354T AND 477K OF THIS ARTICLE.

750. REGIONAL HEALTH COOPERATIVES—COLLECTION OF PREMIUMS.

(A)     (1) THE REGIONAL HEALTH COOPERATIVE SHALL ESTABLISH
PROCEDURES FOR COLLECTION OF PREMIUMS FROM INDIVIDUALS AND FROM
MEMBER EMPLOYERS. ON RECEIPT OF PREMIUMS, THE REGIONAL HEALTH
COOPERATIVE SHALL PAY PARTICIPATING CARRIERS THEIR CONTRACTED RATES
ON A MONTHLY BASIS OR AS OTHERWISE MUTUALLY AGREED.

(2) IN ADDITION TO PREMIUM PAYMENTS, MEMBER EMPLOYERS SHALL
PAY A REASONABLE FEE, ESTABLISHED BY THE REGIONAL HEALTH COOPERATIVE
BUT NOT EXCEEDING 4 PERCENT OF PREMIUMS ON AN ANNUAL BASIS, TO COVER
THE COST OF OPERATING THE PROGRAM.

(B)     (1) IN THIS SUBSECTION, "RISK ADJUSTMENT MECHANISM" MEANS A
STATISTICALLY BASED PROCESS THAT MAY BE USED BY THE HEALTH CARE ACCESS
AND COST COMMISSION TO ADJUST PAYMENTS TO PARTICIPATING CARRIERS TO
OFFSET DISPROPORTIONATE SHARES OF HIGH OR LOW RISK ENROLLEES BY
PARTICULAR PARTICIPATING CARRIERS.

(2) THE HEALTH CARE ACCESS AND COST COMMISSION, IN
CONSULTATION WITH THE REGIONAL HEALTH COOPERATIVES AND THE
COMMISSIONER, SHALL GATHER THE NECESSARY DATA TO STUDY THE NEED FOR A
RISK ADJUSTMENT MECHANISM THAT COULD BE IMPLEMENTED BY THE PROGRAM.
A RISK ADJUSTMENT MECHANISM MAY BE IMPLEMENTED AS THE HEALTH CARE
ACCESS AND COST COMMISSION DEEMS NECESSARY. A RISK ADJUSTMENT
MECHANISM ADOPTED BY THE HEALTH CARE ACCESS AND COST COMMISSION
SHALL BE BASED ON OBJECTIVE DEMOGRAPHIC AND OTHER DATA REFLECTING
ENROLLEES' ACTUARIAL RISK, AND THE METHODS AND MECHANISM SHALL BE

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