Maine Guaranteed Access Reinsurance Association

Programs: The association was created for the purpose of providing a reinsurance program for the higher risk segment of maine's individual health insurance market in order to reduce insurance costs in that market and assure availability of affordable health insurance to residents of the state of maine by providing reinsurance of a significant portion of the coverage provided through individual health insurance policies offered by its member insurers. Subsequent to the association's organization, the federal affordable care act established a temporary uniform national reinsurance program to be operated across all 50 states in the years 2014, 2015, and 2016 (the federal program. The federal program is funded through assessments payable by all health insurers and tpas (including those operating in maine). As a result, maine's health insurance market would be subject to double assessments for overlapping individual market reinsurance coverage if both the association and the federal program were to operate conterminously. Because the federal program does not contain an exemption for states, such as maine, that operate their own reinsurance program, the board concluded that the only reasonable alternative was to suspend operation of the association's reinsurance program during the pendency of the federal program in order to avoid the cost burden on the state's insurance market associated with overlapping reinsurance programs and multiple assessments. The maine legislature adopted 2013 public law ch. 273 amending the association's enabling legislation to require the suspension of the association's operations during the period in which the federal program is in effect. The legislation permits the association to retain its existing statutory authority to wind down its operations, including (i) paying reinsurance claims incurred prior to the effective date of its suspension of operations; and (ii) imposing any additional assessment necessary to fund any net losses for the period of the association's operation pursuant to 24-a m. R. S. 3957(5). The association filed an amendment to its plan of operation giving effect to the suspension. By legislation adopted june 2, 2017, the suspension has been extended through december 31, 2023, subject to possible restart of operations earlier, pursuant to a so-called section 1332 waiver or other amendment to the association's plan of operation approved by the maine superintendent of insurance.