1028

LAWS OF MARYLAND

Ch. 21

INITIAL APPLICATION FOR A CERTIFICATE OF AUTHORITY TO
OPERATE, IT SHALL PAY TO THE COMMISSIONER A FEE OF $300.

(B) INVESTIGATION FEE.

IN ADDITION TO THE FEE REQUIRED UNDER SUBSECTION (A) OF
THIS SECTION, EACH HEALTH MAINTENANCE ORGANIZATION SHALL PAY
A REASONABLE SUM, NOT EXCEEDING $2,500, THAT THE
COMMISSIONER FINDS TO BE THE COST OF THE INVESTIGATIONS MADE
BY THE COMMISSIONER AND THE DEPARTMENT AS REQUIRED UNDER
THIS SUBTITLE.

REVISOR'S NOTE: This section formerly appeared as
Article 43, § 844(c).

The only changes are in style.

Defined terms: "Commissioner" § 19-701

"Department" § 1-101

"Health maintenance organization" § 19-701

19-710. BASIC REQUIREMENTS TO OPERATE AS. A HEALTH
MAINTENANCE ORGANIZATION.

(A)  IN GENERAL.

TO QUALIFY FOR A CERTIFICATE OF AUTHORITY TO OPERATE AS
A HEALTH MAINTENANCE ORGANIZATION, AN APPLICANT SHALL
SATISFY THE COMMISSIONER THAT THE APPLICANT WILL MEET THE
REQUIREMENTS OF THIS SECTION.

(B)  CONFORMANCE WITH DEFINITION.

THE APPLICANT SHALL CONFORM TO THE DEFINITION OF A
HEALTH MAINTENANCE ORGANIZATION.

(C)  APPROPRIATE HEALTH CARE PLAN.

THE APPLICANT SHALL ESTABLISH AND OPERATE A BONA FIDE
HEALTH MAINTENANCE ORGANIZATION THAT CAN PROVIDE HEALTH CARE
SERVICES IN THE PROPOSED GEOGRAPHIC AREA.

(D)  ACTUARIAL SOUNDNESS AND NET WORTH.

THE HEALTH MAINTENANCE ORGANIZATION SHALL BE
ACTUARIALLY SOUND AND HAVE AN ADEQUATE TANGIBLE NET WORTH.
THESE REQUIREMENTS MAY BE SATISFIED BY A FINDING THAT THE
HEALTH MAINTENANCE ORGANIZATION HAS MADE ACCEPTABLE
ARRANGEMENTS TO PROVIDE ALL OR STIPULATED PARTS OF HEALTH
CARE SERVICES THAT IT OFFERS.

(E)  TERMS OF CONTRACTS.

THE TERMS OF CONTRACTS, INCLUDING ANY MEDICAL
ASSISTANCE PROGRAM CONTRACTS UNDER TITLE XVIII OR TITLE XIX