HARRY HUGHES, Governor

1537

all patients in the hospital; authorizing the conducting of
a utilization review program by an independent nonhospital
affiliated review agent; requiring certain persons to
perform the utilization review program; providing for the
approval and recertification of a utilization review
program; providing for penalties if a hospital fails to
provide a utilization review program; requiring the
Secretary of Health and Mental Hygiene, in consultation with
certain health care providers and payors, to establish
certain minimum standards for a utilization review program;
providing that a patient may not be charged for days
disallowed under a utilization review program under certain
circumstances; providing that a hospital is exempt from
requiring a utilization review program for certain patients;
providing that the Secretary may waive standards for
federally-mandated utilization review programs under certain
circumstances; requiring certain insurance coverage for
outpatient services and second opinions under certain
circumstances; providing for a report to the General
Assembly under this Act; providing for multiple effective
dates; creating a Joint Committee on Health Care Cost
Containment, to be appointed by the President of the Senate
and Speaker of the House of Delegates; providing for the
staff, responsibilities, and termination of the Joint
Committee; creating a Joint Committee on Health Care Cost
Containment, to be appointed by the President of the Senate
and the Speaker of the House of Delegates; providing for the
staff and responsibilities of the Joint Committee; and
generally relating to a utilization review program for
hospital patients.

BY adding to

Article - Health - General
Section 19-319(d)
Annotated Code of Maryland
(1982 Volume and 1984 Supplement)

BY adding to

Article 48A - Insurance Code

Section 354CC, 470V, and 477CC

Annotated Code of Maryland

(1979 Replacement Volume and 1984 Supplement)

Preamble

WHEREAS, The provision of medically unnecessary or
inappropriate care and the provision of care in an economically
inefficient manner contribute to the escalation in health care
costs; and

I