VETOES

in Maryland and who participate in a health maintenance
organization, preferred provider organization, or group practice
in Maryland and any adjoining state.

The original intent of this bill was to allow Medical Mutual
to expand its policyholder base to other states and provide it
with additional sources of revenue. It was felt that this
expansion would assist Medical Mutual in providing insurance
coverage to Maryland physicians at a time when the availability
and affordability of medical malpractice insurance has reached
crisis proportions. The unintended effect of this amendment,
however, would be to severely limit, rather than expand, the
current underwriting base for Medical Mutual.

Under present law Medical Mutual is permitted to write
insurance in any of the 50 states, provided the physician is
licensed to practice in Maryland. If House Bill 230 were to be
signed as amended, it would limit Medical Mutual's current
underwriting authority to only those physicians licensed in
Maryland and who are part of an HMO, PPO, or group practice in
both Maryland and any adjoining state.

Upon learning of this unintended effect of the bill, the
sponsor has requested that I veto House Bill 230. The primary
proponent of this bill, Medical Mutual, also concurs with this
recommendation and will be working with Senate and House
Committees over the interim to study this issue further.

Therefore, for the above reason, I have decided to veto
House Bill 230.

Sincerely,

William Donald Schaefer

Governor

House Bill No. 230

AN ACT concerning

Medical Mutual Liability Insurance Society - Out-of-State

Physicians

FOR the purpose of permitting the Medical Mutual Liability
Insurance Society of Maryland to insure certain out of state
physicians and health care providers under certain
circumstances; modifying certain definitions; and generally
relating to the Medical Mutual Liability Insurance Society.

BY repealing and reenacting, with amendments,

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