Amends AS 21.55.130 as required by the federal Trade Adjustment Assistance Act of 2002 (TAA), to prohibit a state plan issued to a qualified TAA eligible individual from imposing a preexisting condition exclusion.

Amends the ACHIA statutes to conform to the TAA program requirement that a plan cannot exceed 150 percent of the standard risk premium rates.

Amends the ACHIA statutes to allow for TAA eligible individuals to participate in ACHIA.

Amends the ACHIA statutes to exempt TAA eligible individuals from restrictions on eligibility for participation in ACHIA, in order to conform to TAA requirements. Moves certain existing requirements for eligibility previously found in the exclusion statute to the eligibility section. See Section 9.

Amends the ACHIA statutes to require that the ACHIA to notify the director that a TAA eligible individual is enrolled in ACHIA in order to allow the director to certify that a TAA eligible individual has qualified health coverage as required under the TAA.

Amends the definition of "resident" to provide for TAA eligible individuals.

Defines "qualified TAA eligible individual" and "TAA eligible individual."

Repeals AS 21.55.140(b). The provisions were moved to AS 21.55.300(b) (see section 5). They were moved to clarify that these are eligibility requirements, not exclusion provisions.

This Act takes effect on July 1, 2003.