1220

LAWS OF MARYLAND

Ch. 345

CONTRACT IN ACCORDANCE WITH ITS TERMS, THE PROVISIONS OF
THIS SECTION MAY NOT REQUIRE PAYMENT TO THE DEPARTMENT.

[470N.

Every contract or agreement for health care coverage
entered into or renewed after July 1, 1979 shall provide for
payment to the State Department of Health and Mental Hygiene
for the cost of services paid for or rendered by the State
Department of Health and Mental Hygiene on behalf of any
person entitled to benefits under such a contract or
agreement of health care coverage. Benefits payable to the
State Department of Health and Mental Hygiene are restricted
to those benefits available to the person under all terms
and conditions of the contract or agreement for health care
coverage for the services paid for or rendered.]

470N.

IF THE DEPARTMENT OF HEALTH AND MENTAL HYGIENE NOTIFIES
AN INSURER THAT SERVICES TO A PERSON COVERED UNDER A HEALTH
INSURANCE POLICY ISSUED, DELIVERED, OR RENEWED IN MARYLAND
HAS BEEN PAID FOR OR PROVIDED BY THE DEPARTMENT, THE INSURER
SHALL REIMBURSE THE DEPARTMENT FOR THE COST OF THE SERVICES
REGARDLESS OF ANY PROVISION IN THE POLICY WHICH WOULD
REQUIRE PAYMENT TO THE POLICYHOLDER OR ANY OTHER PAYEE.
BENEFITS PAYABLE TO THE DEPARTMENT ARE LIMITED TO THOSE
BENEFITS AVAILABLE UNDER ALL TERMS AND CONDITIONS OF THE
POLICY FOR THE SERVICES PAID FOR OR PROVIDED. IF, PRIOR TO
RECEIVING NOTICE FROM THE DEPARTMENT, THE INSURER, ACTING IN
GOOD FAITH, HAS PAID THE BENEFITS AVAILABLE UNDER THE POLICY
IN ACCORDANCE WITH ITS TERMS, THE PROVISIONS OF THIS SECTION
MAY NOT REQUIRE PAYMENT TO THE DEPARTMENT.

477U.

IF THE DEPARTMENT OF HEALTH AND MENTAL HYGIENE NOTIFIES
AN INSURER THAT SERVICES TO A PERSON COVERED UNDER A HEALTH
INSURANCE POLICY ISSUED, DELIVERED, OR RENEWED IN MARYLAND
HAS BEEN PAID FOR OR PROVIDED BY THE DEPARTMENT, THE INSURER
SHALL REIMBURSE THE DEPARTMENT FOR THE COST OF THE SERVICES
REGARDLESS OF ANY PROVISION IN THE POLICY WHICH WOULD
REQUIRE PAYMENT TO THE POLICYHOLDER OR ANY OTHER PAYEE.
BENEFITS PAYABLE TO THE DEPARTMENT ARE LIMITED TO THOSE
BENEFITS AVAILABLE UNDER ALL TERMS AND CONDITIONS OF THE
POLICY FOR THE SERVICES PAID FOR OR PROVIDED. IF, PRIOR TO
RECEIVING NOTICE FROM THE DEPARTMENT, THE INSURER, ACTING IN
GOOD FAITH, HAS PAID THE BENEFITS AVAILABLE UNDER THE POLICY
IN ACCORDANCE WITH ITS TERMS, THE PROVISIONS OF THIS SECTION
MAY NOT REQUIRE PAYMENT TO THE DEPARTMENT.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act
shall take effect July 1, 1980.

Approved May 6, 1980.