The Bureau of Insurance has posted an independent analysis of LD 2007, the Made for Maine Health Coverage Act, that found health insurance premiums would be lower for both individuals and small businesses under the proposal. Gorman Actuarial, a nationally known actuarial consulting firm, has worked on this analysis since last summer. Using data recently collected from Maine health insurance carriers, its model estimated the impact of pooling the individual and small group markets and extending reinsurance to the pooled market.

Gorman estimates that small businesses would save $165 per worker per year, while individuals would save $257 per year. Combining the markets, as LD 2007 proposes, would also increase premium stability and spread health care costs across a larger population, the analysis found.

Gorman will present this analysis at the Health Coverage, Insurance, and Financial Services Committee work session on LD 2007 tomorrow, February 26, 2020.

House Speaker Sara Gideon and Senate President Troy Jackson introduced the legislation on Governor Mills’ behalf. In addition to leveraging federal funds to help make premiums more affordable for small businesses, LD 2007 would make some of the most common medical visits free or less costly and simplify shopping for a health coverage plan. In short, LD 2007 is a comprehensive plan to ensure that people have clear choices for their coverage.

Maine Individual and Small Group Modeling Update for HCIFS-February 26, 2020

Technical Corrections to LD 2007 Submitted by the Administration