1628

LAWS OF MARYLAND

Ch. 572

(g) The Secretary of Health and Mental Hygiene, unless
provided otherwise by law, is authorized to promulgate rules
and standards pertaining to the quality of health care
services provided by health maintenance organizations
through their health care plans. The Department of Health
and Mental Hygiene may conduct periodic examinations to
determine the quality of health care services being provided
by the HEALTH MAINTENANCE organization, and to develop
statistical information, in accordance with rules and
procedures approved by the Secretary of Health and Mental
Hygiene, utilizing methods which will provide maximum
confidentiality as to patient identity and assure objective
evaluation, consistent with the provisions of § 844 of this
subtitle.

849.

(b) (4) Regulatory or administrative actions under
the jurisdiction of the Department of Health and Mental
Hygiene concerning a function or facet of a health
maintenance organization's operation, in the absence of the
organization's ability to make corrective changes or new
arrangements satisfactory to the Department, which entail a
written directive setting forth substantiated reasons and
recommendations to the Commissioner shall require the
Commissioner to issue appropriate orders accordingly,
including the suspension or revocation, of the HEALTH
MAINTENANCE organization's certificate of authority.

(5) For each health maintenance organization,
all ultimate actuarial and financial evaluations and
determinations repose with the State Insurance Commissioner.
For the protection of the public and of the HEALTH
MAINTENANCE organization's subscribers and members, the
Commissioner has the responsibility of determining that the
health maintenance organization is or will be in position to
provide a fiscally sound operation and adequate provision
against the risk of insolvency.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act

shall take effect July 1, 1979.

Approved May 29, 1979.

CHAPTER 573

(House Bill 673)

AN ACT concerning

Creation of a State Debt - Community Mental Health Center

Components, Addiction Facilities, and Mental

Retardation Facilities