HARRY HUGHES, Governor

3789

Dear Mr. President:

In accordance with Article II, Section 17 of the Maryland
Constitution, I have today vetoed Senate Bill 631.

This bill requires every group health insurance contract to
provide continuation of benefits to an insured whose employment
is involuntarily terminated without cause.

House Bill .920, which was passed by the General Assembly and
signed by me on May 27; 1986, accomplishes the same purpose.
Therefore, it is not necessary for me to sign Senate Bill 631.

Sincerely,
Harry Hughes
Governor

Senate Bill No. 631

AN ACT concerning

Group Health Insurance - Continuation of Benefits for
Involuntarily Terminated Employees

FOR the purpose of requiring group health insurance contracts to
offer employees who are involuntarily terminated from
employment other than for cause the option to continue
coverage; specifying the eligibility for and duration of the
continuation coverage; specifying the maximum period an
employee may continue coverage; prohibiting continuation
coverage from being conditional upon evidence of
insurability or waiting periods; requiring continuation
coverage to be identical to coverage offered to similarly
situated employees who have not been terminated from
employment; specifying a time period and procedure for
employees to elect continuation coverage; requiring
employers to post notice of continuation coverage; requiring
the Secretary of Employment and Training to provide notice
of continuation coverage to unemployment insurance
claimants; requiring the Insurance Commissioner to publish
certain notices and supply and prescribe certain forms;
specifying the maximum amount which may be required to be
paid in order to receive continuation coverage; specifying
that the continuation coverage of this Act does not affect
or limit conversion rights; requiring the certificates
issued under group insurance contracts to specify terms and
conditions of the continuation coverage; modifying other
provisions regarding continuation of group health benefits;
making health maintenance organizations subject to the
continuation provisions; limiting the liability of the
employer and insurer in certain cases; defining certain
terms; and generally relating to group health insurance
coverage.