HARRY HUGHES, Governor

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terms; clarifying the meaning of the Act through the
consistent use of the term health maintenance
organization in place of certain other terms; altering
the definition of health maintenance organization to

generally relating to health maintenance organizations.

BY repealing and reenacting, with amendments,

Article 43 - Health

Section 841; 842(a), (f), and (g); 844(a) and (b);

845(a), (b), (d) , and (f); 846; 847(d) (1), (3),

and (g); and 849(b)(4) and (5)
Annotated Code of Maryland
(1971 Replacement Volume and 1978 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:

Article 43 - Health

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 health maintenance organizations
which provide health care services directly to subscribers
or groups of subscribers who contract for these services
under a system of prepayments.

(b)   In carrying out this intention, the policy of the
State is to:

(1)   Provide one overall State law for the
regulation of health maintenance organizations, allowing
flexibility for the many forms they may take, thereby
facilitating the uniform administration of the regulations
that are promulgated pursuant to this subtitle and the
public understanding of them; and

(2)   Eliminate legal barriers to the
organization, promotion, and expansion of [prepaid health
care plans] HEALTH MAINTENANCE ORGANIZATIONS; and

(3)   Provide for regulation of the fiscal aspects
of these [plans] HEALTH MAINTENANCE ORGANIZATIONS by the
State Insurance Commissioner and of the quality of health
care by the Department of Health and Mental Hygiene and by
professional standards review organizations where
appropriate; and