Ch. 420                                    LAWS OF MARYLAND

Approved May 14, 1987.

CHAPTER 420

(Senate Bill 1002)

AN ACT concerning

Health Maintenance Organizations - Regulation
- Certificates of Need

FOR the purpose of deleting obsolete references to certain
federal acts; requiring certificate of need review of
certain health care projects proposed by a health
maintenance organization; defining the criteria to be
considered by the Health Resources Planning Commission when
conducting a certain certificate of need review reviews;
altering the restriction on a health maintenance
organization's ability to use certain types of advertising;
authorizing the Insurance Commissioner to adopt rules and
regulations governing the financial condition of health
maintenance organizations; altering the respective roles of
the Insurance Commissioner and the Department of Health and
Mental Hygiene with respect to monitoring the fiscal
soundness of health maintenance organizations; providing a
certain termination date for certain sections of this Act;
and generally relating to the regulation of health
maintenance organizations and the certificate of need
process.

BY repealing and reenacting, with amendments,

Article - Health - General

Section 19-116, 19-724(b), and 19-728(b) and (c)

Annotated Code of Maryland

(1982 Volume and 1986 Supplement)

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

Article - Health - General

19-116.

(a) In this section, "health maintenance organization"
means a health maintenance organization under Subtitle 7 of this
title [or under the federal Public Health Service Act of 1975].

- 2112 -