A BILL TO BE ENTITLED
AN ACT TO AUTHORIZE THE ESTABLISHMENT OF A health insurance PILOT DEMONSTRATION PROJECT encompassing BUNCOMBE COUNTy and counties contiguous to buncombe county TO PROVIDE A MODEL FOR AFFORDABLE EMPLOYER‑BASED HEALTH INSURANCE .
The General Assembly of North Carolina enacts:
SECTION 1.(a)  Notwithstanding any other provision of law to the contrary, Buncombe County and the counties contiguous to Buncombe County may establish and implement a five‑year health insurance demonstration project ("Demonstration Project"), the goal of which is to reduce the number of uninsured North Carolinians and to reduce the cost of health insurance for all purchasers of health insurance in the Demonstration Project area.  The Demonstration Project must comply with the following:
(1)	The products for which the pooling of small and large groups would occur are fully insured.
(2)	The pooling arrangement requires that all small employers desiring to join be accepted, and that all employees of each employer be included in the pool.
SECTION 1.(b)  The Demonstration Project authorized under Section 1 of this act may contain the following components:
(1)	Use of matching funds from State, federal, and private sources to subsidize private health insurance premiums paid by eligible small employers and low-wage employees participating in the Demonstration Project.
(2)	Offer a health benefits package with defined tiers of benefits and premium payment mechanisms as optional alternatives to the standard, large group health benefits package to be applied to eligible small employers in achieving affordable health insurance premiums for employees and employers.
(3)	The establishment of a community-rated large-risk pool among participating public employers, nonprofit employers, for‑profit employers, and eligible small employers to purchase appropriate fully insured health benefits at competitive uniform premium prices that share the risk of catastrophic losses equitably among all participants. The large risk pool authorized in this subdivision shall not be established unless and until reviewed and approved by the Department of Insurance.
SECTION 1.(c)  Based on information provided by the Demonstration Project and other sources, the Department of Insurance shall evaluate the Demonstration Project to determine the following:
(1)	The impact on the number of uninsured persons in the Demonstration Project area and the cost and source of their care.
(2)	The impact of unique, local structures for disease management and health promotion modeled in Buncombe County among large employers on the health and costs for enrollees through small employers.
(3)	Approaches to achieve prudent and appropriate use of high technology health care resources to the population enrolled in the Demonstration Project among large and small employers.
(4)	Integration of primary care for the increased insured population with the ongoing programs of care for the remaining uninsured to enhance access, improve quality and continuity of care.
(5)	The impact on the cost of care to uninsured and insured populations in the piloted communities.
(6)	Other information and data requested by the Department of Insurance to ascertain the benefits and drawbacks of the Demonstration Project.
SECTION 1.(d)  G.S. 105‑129.16E applies to eligible small businesses that provide health benefits under the Demonstration Project authorized under this section.
SECTION 2.(a)  G.S. 105‑129.16E(a) reads as rewritten:
"(a)	Credit. – A small business that provides health benefits for all of its eligible employees during the taxable year is allowed a credit to offset its costs in providing health benefits for its eligible employees. For the purposes of this subsection, a taxpayer provides health benefits if it pays at least fifty percent (50%) of the premiums for a health benefit plan sold by a small employer carrier under Part 5 of Article 50 of Chapter 58 of the General Statutes or if its employees have qualifying existing coverage.
The credit is equal to a dollar amount per eligible employee whose total wages or salary received from the business does not exceed forty thousand dollars ($40,000) on an annual basis. The dollar amount is two hundred fifty dollars ($250.00), not to exceed the taxpayer's costs of providing health benefits for the employee during the taxable year."
SECTION 2.(b) This section is effective for taxable years beginning on or after January 1, 2008.  
SECTION 3.  This act is effective when it becomes law.  Section 1 of this act expires June 30, 2013.