2019-07-24T09:57:28-05:00 2018-12-31 450250958 EIDE BAILLY LLP 877 W MAIN ST STE 800 BOISE ID 83702 990 2018-01-01 454331075 Maine Guaranteed Access Reinsurance Association MAIN 2077911335 254 Commercial Street Portland ME 04101 Jolan Ippolito Chair 2077911335 2019-07-12 1 Kim Hunwardsen CPA P00484560 2083447150 2019-07-12 199.247.43.25 2019-07-12 11:31:27 MD P 2B782B8CDA302D837378D983895D3BFD08CC33BD E3B96EF6EB1F71A28E9A044EB2088E22A2328E47 2018 2019-02-21 02:37:17Z Jolan Ippolito 254 Commercial Street Portland ME 04101 3194962 0 X www.mgara.org X 2012 ME A reinsurance program for the high risk segment of Maine's individual health insurance market. 11 11 0 13 0 0 0 0 0 0 41806 87732 0 0 41806 87732 0 0 0 0 0 0 0 0 0 439607 464295 439607 464295 -397801 -376563 5099362 4687939 57153 22293 5042209 4665646 X To operate the reinsurance program described in the Enabling Act in such manner as to maximize the impact of the Association in lowering the cost of health insurance in Maine's individual market; and to do so without jeopardizing the solvency of the Association. 0 0 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. (Continued on Schedule O)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.On July 30, 2018, the State of Maine received approval from the United States Department of Health & Human Services, Centers for Medicare & Medicaid Services ("CMS") of its Application for State Innovation Waiver under Section 1332 of the Patient Protection and Affordable Care Act ("Section 1332 Waiver Application"). On August 21, 2018 the State of Maine accepted the Section 1332 Waiver by executing and delivering to CMS the Specific Terms and Conditions of the Section 1332 Waiver ("STCs"). The Section 1332 Waiver Application andthe STCs are collectively referred to as the "Section 1332 Waiver."On August 18, 2018, the Association's Board approved the re-initiation of Association operations as of January 1,2019, and the submission of an Amended and Restated Plan of Operation for approval by the MaineSuperintendent of Insurance. On November 30, 2018, CMS confirmed in aletter to the Maine Superintendent of Insurance the estimated amount of Section 1332 pass-through funding to the State of Maine for use in operating the Association's reinsurance program at $65,270,675. The Association's Amended and Restated Plan of Operation was submitted to and approved by the Superintendent of Insurance in December 2018. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 X 11 11 0 0 0 0 1 1 1 1 0 0 0 1 1 1 1 0 0 0 0 0 X River 9 Consulting 2089473177 301 Meadow Ridge Lane Eagle ID 83616 X Jolan Ippolito Chair 2.00 X X 0 0 0 Dana Kempton Treasurer 2.00 X X 0 0 0 Christopher Howard Secretary/Clerk 2.00 X X 0 0 0 Dr David Howes Director 2.00 X 0 0 0 Joel Allumbaugh Director 2.00 X 0 0 0 William M Whitmore Director 2.00 X 0 0 0 Jennifer Juke Director 2.00 X 0 0 0 Edward J Kane Director 2.00 X 0 0 0 Katherine Pelletreau Director 2.00 X 0 0 0 James Koelbl Director until 10/18/2018 2.00 X 0 0 0 Bruce Nicholson Director 2.00 X 0 0 0 Kevin Lewis Director 2.00 X 0 0 0 Jim Lyon Director as of 4/25/2018 2.00 X 0 0 0 0 0 0 0 0 0 0 Milliman 80 Lamberton Road Windsor CT 06095 Actuarial Services 238693 1 98641 98641 3096321 3107230 -10909 -10909 -10909 87732 0 0 87732 X 139680 139680 7450 7450 304693 304693 11270 11270 Bank Service Charges 1202 1202 464295 0 464295 0 72681 173729 5010216 4496150 16465 18060 5099362 4687939 57153 22293 57153 22293 X 5042209 4665646 5042209 4665646 5099362 4687939 -376563 0 X X 0 1 X 0 0 0 X 87732 0 87732 0 87732 464295 0 464295 0 464295 Part X, Line 2: It is management's position that the Association is a non-profit tax exempt organization under 501(c)(4) of the Internal Revenue Code (IRC). The Association received a letter from the Internal Revenue Service dated October 8, 2015, confirming approval of the tax exempt status effective June 27, 2012. We believe that the Association has appropriate support for any tax positions taken affecting its annual filing requirements, and as such, does not have any uncertain tax positions that are material to the financial statements. We would recognize future accrued interest and penalties related to unrecognized tax benefits and liabilities in income tax expense if such interest and penalties are incurred. Form 990, Part VI, Section A, line 1 The Board of Directors by resolution adopted by a majority of the full Board of Directors then in office may create and appoint an Executive Committee consisting of three or more Directors and may delegate to it some or all of the Board's authority in the management of the corporation's business and affairs except as limited by Section 709 of the Maine Nonprofit Corporations Act, the resolution establishing such executive authority or any other resolutions thereafter adopted by the Board of Directors. The Executive Committee shall keep regular minutes of its proceedings and report the same to the Board of Directors. Members of the Executive Committee may be removed, with or without cause, and vacancies may be filled by resolution adopted by a majority of the full Board of Directors then in office. Form 990, Part VI, Section A, line 6 A person automatically becomes a Member at the time it becomes an Insured Member within the meaning of the Enabling Act, and continues to be a Member as long as it continues to be an Insured Member. Form 990, Part VI, Section A, line 7a The Board of Directors consists of 12 members, comprised of 5 Member Directors and 7 Public Interest Directors. Member Directors are elected by Member Insurers, at least one of whom is an officer, employee, director manager, shareholder, partner, member or designee of a domestic insurer and at least one of whom is an officer, employee, director, manager, shareholder, partner, member or designee of a third party administrator. Public Interest Directors are appointed by the Superintendent of Insurance. The Public Interest Directors consist of: 1. 2 members chosen from the general public who are not associated with the medical profession, a hospital or an insurer; 2. 2 members who represent medical providers; 3. 1 member who represents a statewide organization that represents small businesses; 4. 1 member who represents individual health insurance consumers; and, 5. 1 member who represents producers. Form 990, Part VI, Section A, line 7b Members have no right to vote except with respect to the election of Member Directors, for which each Member has one vote. The Board of Directors shall have the exclusive power to alter, amend, or repeal the Articles of Incorporation, subject to the approval of the Superintendent of Insurance of the State of Maine. Form 990, Part VI, Section A, line 8b The association did not utilize an Executive Committee during the fiscal year. Form 990, Part VI, Section B, line 11b A copy of the form 990 is provided to the association for review prior to filing. Form 990, Part VI, Section B, line 12c The board of the organization has adopted a conflict of interest policy. The conflict of interest policy covers the Board of Directors and specifies the procedures for handling all conflicts that arise. The policy is reviewed on an annual basis by the governing board. Determinations of whether a conflict exists are made by the officers of the board. The officers of the board determine appropriate responses and actions to take when actual conflicts arise. Form 990, Part VI, Section C, line 19 The association's organizational documents are available upon request. Form 990, Part IX, line 11g Administrative Services: Program service expenses 0. Management and general expenses 66,000. Fundraising expenses 0. Total expenses 66,000. Actuarial Fees: Program service expenses 0. Management and general expenses 238,693. Fundraising expenses 0. Total expenses 238,693. FORM 990, PART XII, LINE 1: Modified Cash Basis of Accounting. Form 990, Part XII, Line 2c: The Board of Directors assumes the responsiblity for oversight of the audit and selection of an independent accountant. State of Maine Department of Professional and Financial Regulation 76 Northern Avenue Gardiner ME 04345 016000001 Bureau of Insurance ME 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0