2806                                          LAWS OP MARYLAND                                      Ch. 739

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1986.

Approved May 27, 1986.

CHAPTER 739
(House Bill 693)

AN ACT concerning

Health Insurance -
Preferred Provider Policies or Contracts

FOR the purpose of requiring preferred provider policies or
preferred provider contracts to contain the same copayment

and deductible provisions for services rendered by

nonpreferred providers as they contain for the services
rendered by preferred providers provide that the aggregate
payments to nonpreferred providers, after all deductible and
copayment provisions have been applied, shall not be less
than a certain percentage of the aggregate payments to
preferred providers with certain exceptions; providing for
the applicability of this Act; and generally relating to
preferred provider policies or preferred provider contracts.

BY repealing and reenacting, with amendments,

Article 48A - Insurance Code

Section 354EE(b), 470X(b), and 477FF(b)

Annotated Code of Maryland

(1979 Replacement Volume and 1985 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 48A - Insurance Code

354EE.

(b) (1) Subject to the approval of the Commissioner, a
nonprofit health service plan may offer or administer a health
benefit program under which the nonprofit health service plan may
offer preferred provider policies or preferred provider contracts
that limit the numbers and types of providers of health care
services eligible for payment as preferred providers under the
insurance policies or insurance contracts.

(2) A nonprofit health service plan may establish
terms and conditions that shall be met by a provider in order to