HARRY HUGHES, Governor

1019

TO SUBSCRIBERS OR GROUPS OF SUBSCRIBERS WHO CONTRACT FOR
THESE SERVICES UNDER A SYSTEM OF PREPAYMENTS; AND

(3) ENCOURAGE THE FORMATION OF HEALTH
MAINTENANCE ORGANIZATIONS BY SUCH DIVERSE GROUPS AS:

(I)  NONPROFIT HEALTH SERVICE PLANS;

(II)  MEDICAL HEALTH SERVICE PLANS;

(III)  MEDICAL CARE FOUNDATIONS;

(IV)  GROUPS OF PROFESSIONALS, EITHER IN
THE FORM OF PARTNERSHIPS OR PROFESSIONAL CORPORATIONS;

(V)  CONSUMER SPONSORED ORGANIZATIONS; OR

(VI)  BUSINESS OR LEGAL ENTITIES.

(B) POLICY.

TO CARRY OUT THE INTENT OF SUBSECTION (A) OF THIS
SECTION, THE POLICY OF THIS STATE IS TO:

(1)  PROVIDE ONE OVERALL STATE LAW THAT:

(I)  REGULATES HEALTH MAINTENANCE
ORGANIZATIONS;

(II)  ALLOWS FLEXIBILITY FOR THE MANY FORMS
THESE HEALTH MAINTENANCE ORGANIZATIONS MAY TAKE; AND

(III)  FACILITATES PUBLIC UNDERSTANDING AND
UNIFORM ADMINISTRATION OF THE RULES AND REGULATIONS THAT ARE
ADOPTED UNDER THIS SUBTITLE;

(2)  ELIMINATE LEGAL BARRIERS TO THE
ORGANIZATION, PROMOTION, AND EXPANSION OF HEALTH MAINTENANCE
ORGANIZATIONS:

(3) PROVIDE FOR REGULATION OF:

(I)  THE QUALITY OF HEALTH CARE, BY THE
DEPARTMENT AND BY PROFESSIONAL STANDARDS REVIEW
ORGANIZATIONS WHERE APPROPRIATE; AND

(II)  ALL OTHER MATTERS COVERED UNDER. THIS
SUBTITLE, BY THE COMMISSIONER; AND

(4) EXEMPT HEALTH MAINTENANCE ORGANIZATIONS FROM
THE INSURANCE LAWS OF THIS STATE, EXCEPT AS SET FORTH IN
THIS SUBTITLE.

REVISOR'S NOTE: This section formerly appeared as
Article 43, § 841.