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Session Laws, 2002
Volume 800, Page 1564   View pdf image
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Ch. 154
2002 LAWS OF MARYLAND
6.5-305. (a) The Secretary of the Department may revoke or suspend a license to
operate a hospital in accordance with
§ 19-327 of the HealthGeneral Article if an
acquisition occurs without the approval of the Attorney General.
(b) An acquisition of a [nonprofit health service plan or a] nonprofit health
maintenance organization may not occur without the
approval of the Administration. (c) A nonprofit health service plan or a nonprofit health maintenance
organization may not be operated for profit.
(d) If the Commissioner determines that a [nonprofit health service plan or a]
nonprofit health maintenance organiza
tion is in violation of subsection (b) or (c) of
this section, th
is Commissioner may, in addition to any other remedies authorized by
law, require the following:
(1) the divestiture of the acquisition; (2) that the entity fully comply with this title; OR (3) that the entity file a plan for conversion to a for profit entity as
requir
ed under this title[;]. (E) IF THE COMMISSIONER DETERMINES THAT A NONPROFIT HEALTH
SERVICE PLAN OR A NONPROFIT HEALTH MA
INTENANCE ORGANIZATION IS IN
VIOLATION OF SUBSECTION (B) OR (C) OF THIS SECTION, THE COMMISSIONER MAY, IN
ADDITION TO ANY OTHER REMEDIE
S AUTHORIZED BY LAW, REQUIRE THE
FOLLOWING:
[(4)] (1) that the certificate of authority of the entity to operate as a
nonprofit health service plan or a nonprofit health maintenance organization in this
State be revoked or suspended; or
[(5)] (2) the payment of a penalty as provided for in § 4-113(d)(1) of the
Insurance Article for each
violation of subsection (b) or (c) of this section. Article - Insurance 14-116. (D) A NONPROFIT HEALTH SERVICE PLAN FORMED OR ORGANIZED UNDER
THE LAWS OF THIS STATE MAY NOT:
(1) FORM OR ORGANIZE UNDER THE LAWS OF ANOTHER JURISDICTION
UNLESS THE COMMISSIONER DETERMINES THAT IT IS IN THE PUBLIC INTEREST; OR
(2) ALTER ITS STRUCTURE, OPERATIONS, OR AFFILIATIONS, IF SUCH
ALTERATION RESULTS IN THE FOR-PROFIT ACTIVITIES OF THE PLAN BECOMING SO
SUBSTANTIAL THAT THE INSURANCE COMMISSIONER DETERMINES THAT THE
PURPOSE OF THE NONPROFIT HEALTH SERVICE PLAN MAY NO LONGER BE
CHARACTERIZED AS OPERATING A NONPROFIT HEALTH SERVICE PLAN.
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Session Laws, 2002
Volume 800, Page 1564   View pdf image
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