1722                                     LAWS OF MARYLAND                                 Ch. 839

CHAPTER 839
(House Bill 1102)

AN ACT to add new Sections 354C, 470D, and 477D to Article 48A of the
Annotated Code of Maryland (1972 Replacement Volume and 1972
Supplement), title "Insurance Code," subtitles "20. Nonprofit Health Service
Plans," "Health Insurance," and "Group and Blanket Health Insurance,"
respectively, to provide that nonprofit health service, individual, and group
health insurance policies must include medical benefits for expenses arising from
the treatment of ([mental or nervous conditions]] , acute mental illnesses and
emotional disorders to establish minimum requirements for these benefits, and
to include nonprofit health service plans which provide psychiatric care within
the nonprofit health service plans which are regulated by subtitle twenty of
Article 48A.

WHEREAS, Mental illness is an affliction which impairs the life of a human
being just as physical illness; and

WHEREAS, Mental illness is a leading cause of individual and family suffering
in Maryland; and

WHEREAS, The costs of care for mental illness, especially for long term care
in State hospitals are an overwhelming burden on many families in Maryland as
well as on the citizens of Maryland in general; and

WHEREAS, Evidence suggests that short term hospitalization in community
hospitals and subsequent outpatient care prevent the development of more serious
mental illness; and

WHEREAS, Current health insurance mechanisms frequently exclude coverage
for medical treatment to prevent mental illness; now, therefore,

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Sections 354C, 470D, and 477D be and they are hereby
added to Article 48A of the Annotated Code of Maryland (1972 Replacement
Volume and 1972 Supplement), title Insurance Code," subtitles "20. Nonprofit
Health Service Plans," "Health Insurance," and "Group and Blanket Health
Insurance," respectively, and all to read as follows:

354C.

(A) EVERY HEALTH INSURANCE POLICY DELIVERED OR ISSUED
FOR DELIVERANCE UNDER THIS SUBTITLE TO ANY PERSON IN
THIS STATE BY A NONPROFIT HEALTH SERVICE ORGANIZATION,
INCLUDING BOTH INDIVIDUAL POLICIES AND GROUP POLICIES,
MUST INCLUDE BENEFITS FOR EXPENSES ARISING FROM
[[MENTAL OR NERVOUS CONDITIONS]] TREATMENT OF ACUTE
MENTAL ILLNESSES AND EMOTIONAL DISORDERS. WHICH IN THE
PROFESSIONAL JUDGMENT OF PRACTITIONERS ARE SUBJECT TO
SIGNIFICANT IMPROVEMENT THROUGH SHORT TERM THERAPY.
THESE BENEFITS MUST BE AT LEAST EQUAL TO THE FOLLOWING
MINIMUM REQUIREMENTS: (1) WITH RESPECT TO BENEFITS FOR
CONFINEMENT AS AN IN-PATIENT IN A HOSPITAL, THE PERIOD OF
CONFINEMENT FOR WHICH BENEFITS ARE PAYABLE SHALL BE AT
LEAST THIRTY (30) DAYS IN ANY CALENDAR YEAR; (2) WITH
RESPECT TO MAJOR MEDICAL EXPENSE COVERAGE, BENEFITS,