1044

LAWS OF MARYLAND

Ch. 21

(II) THE PREMIUMS HAVE BEEN PAID BY THAT
NONPROFIT HEALTH MAINTENANCE ORGANIZATION.

REVISOR'S NOTE: This section formerly appeared as
Article 43, § 856.

The only changes are in style.

Defined term:

"Health maintenance organization" § 19-701

19-728. RESPONSIBILITIES OF DEPARTMENT AND COMMISSIONER.

(A)  ACTIONS UNDER JURISDICTION OF DEPARTMENT.

IF, AS TO A MATTER THAT IS WITHIN THE JURISDICTION OF
THE DEPARTMENT UNDER THIS SUBTITLE, THE SECRETARY FINDS THAT
A HEALTH MAINTENANCE ORGANIZATION DOES NOT MEET THE
REQUIREMENTS OF THIS SUBTITLE OR THE RULES AND REGULATIONS
ADOPTED UNDER IT AND CANNOT OR WILL NOT MAKE CORRECTIVE
CHANGES OR NEW ARRANGEMENTS TO MEET THESE REQUIREMENTS, THE
SECRETARY MAY SEND TO THE COMMISSIONER A WRITTEN DIRECTIVE
THAT SETS OUT THE FINDINGS OF THE SECRETARY AND REASONS FOR
THEM AND DIRECTS THE COMMISSIONER TO SUSPEND OR REVOKE THE
CERTIFICATE OF AUTHORITY OF THE HEALTH MAINTENANCE
ORGANIZATION OR TO TAKE ANY OTHER APPROPRIATE ACTION THAT
THE SECRETARY SPECIFIES. THE COMMISSIONER SHALL COMPLY WITH
THE DIRECTIVE.

(B)  ACTUARIAL AND FINANCIAL EVALUATIONS AND
DETERMINATIONS.

THE COMMISSIONER IS RESPONSIBLE FOR:

(1)  DETERMINING WHETHER EACH HEALTH MAINTENANCE
ORGANISATION IS OR WILL BE ABLE TO PROVIDE A FISCALLY SOUND
OPERATION AND ADEQUATE PROVISION AGAINST RISK OF INSOLVENCY;
AND

(2)  ACTUARIAL AND FINANCIAL EVALUATIONS AND
DETERMINATIONS OF EACH HEALTH MAINTENANCE ORGANIZATION.

REVISOR'S NOTE: This section is new. language derived
without substantive change from former Article
43, § 849(b)(4) and (5).

As to subsection (a) of this section, the
Commission to Revise the Annotated Code notes,
for consideration by the General Assembly, that
the meaning of that subsection is not only
unclear, but raises the questions whether the
Secretary is to direct the Commissioner to take
specific action, whether the Commissioner has
discretion to act on recommendations, and whether