1380

LAWS OF MARYLAND

[Ch. 276

Commissioner and the Department of Health and Mental
Hygiene in regulating these organizations, their
financial status and quality of medical services
they provide; exempting health maintenance
organizations from payment of insurance taxes on
premiums and providing a partial exemption for such
taxes imposed on insurance companies insuring
portions of the activities of certain of these
organizations; and generally relating to the
regulation of organizations providing prepaid
medical care services.

BY adding to

Article 43 - Health

Section 840 through 858 to be under the new Subtitle

"Health Maintenance Organization Act"
Annotated Code of Maryland
(1971 Replacement Volume and 1974 Supplement)

BY repealing and re—enacting, with amendments,

Article 81 — Revenue and Taxes

Section 135(1) and 136(b)

Annotated Code of Maryland

(1969 Replacement Volume and 1974 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That new Sections 840 through 858 to be under
the new Subtitle "Health Maintenance Organization Act" be
and they are hereby added to Article 43 — Health, of the
Annotated Code of Maryland (1971 Replacement Volume and
1974 Supplement) to read as follows:

Article 43 - Health

HEALTH MAINTENANCE ORGANIZATION ACT

840.

THIS SUBTITLE SHALL BE KNOWN AND MAY BE CITED AS THE
"HEALTH MAINTENANCE ORGANIZATION ACT".

841.

(A) THE INTENTION OF THE GENERAL ASSEMBLY IN
ADOPTING THIS SUBTITLE IS TO PROVIDE ALTERNATIVE METHODS
FOR THE DELIVERY OF HEALTH CARE SERVICES TO RESIDENTS OF
THE STATE, WITH A VIEW TOWARD ACHIEVING GREATER
EFFICIENCY AND ECONOMY IN PROVIDING THESE SERVICES. THE
GENERAL ASSEMBLY WISHES TO ENCOURAGE THE FORMATION OF