HARRY HUGHES, Governor

2509

CHAPTER 248

(Senate Bill 117)

AN ACT concerning

Medical Care Programs - Reimbursement for Services

FOR the purpose of eliminating requirements which limit the
benefits payable to the Department of Health and Mental
Hygiene under a nonprofit health service plan or a
health insurance policy issued, delivered, or renewed
in this State to those benefits available under all
terms and conditions of the plan or policy. prohibiting
insurers who pay benefits to the Department of Health
and Mental Hygiene under a nonprofit health service
plan or a health insurance policy issued, delivered, or
renewed in this State from denying reimbursement to the
Department because of the manner, form, or date of
claim, as long as certain conditions are met.

BY repealing and reenacting, with amendments,

Article 48A - Insurance Code

Section 354U, 470N, and 477U

Annotated Code of Maryland

(1979 Replacement Volume and 1981 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
read(s) as follows:

Article 48A - Insurance Code

354U.

If the Department of Health and Mental Hygiene notifies
a nonprofit health service plan that services to a person
covered under a contract issued, delivered, or renewed in
Maryland has been paid for or provided by the Department,
the nonprofit health service plan shall reimburse the
Department for the cost of the services regardless of any
provision in the contract which would require payment to the
subscriber or any other payee. Benefits payable to the
Department are limited to those benefits available under
[all terms and conditions of] the contract for the
services paid for or provided. If, prior to receiving
notice from the Department, the nonprofit health service
plan, acting in good faith, has paid the benefits available
under the contract in accordance with its terms, the
provisions of this section may not require payment to the