Bill No.: SF0098 Drafter: JWL

LSO No.: 06LSO-0414 Effective Date: 7/1/2006

Enrolled Act No.: SEA0056

Chapter No.: 120

Prime Sponsor: Senator Scott

Catch Title: Health insurance-small employer carrier reinsurance.

Subject: Amendments to the small employer carrier reinsurance program.

Summary/Major Elements:

· Current law contains a small employer carrier reinsurance program. This bill modifies that program.

· Creates an account for the payment of all claims, insurer reimbursements and costs of administration in the program and authorizes continuous appropriation of the account.

· Creates an insurance carrier assessment, in addition to small employer premiums, to support the program.

· All authorized insurers liable for premium taxes can be assessed to offset costs of the program. The assessments are limited to 40% of the gross premium tax owed. Insurers receive credit for the assessment plus a 5% additional credit against premium taxes owed.

· Authorizes the program board to create groupings or pools among participating employers or individuals.

· Replaces the fixed statutory premiums for small employer groups with a range of allowable premium rates.

· Requires the premiums to be kept as close as possible to the lower limits, except to the extent necessary not to exceed the 40% assessment limit.