WILLIAM DONALD SCHAEFER, Governor Ch. 395

CHAPTER 395

(House Bill 346)

AN ACT concerning

Health Maintenance Organizations - Fees for Investigations

FOR the purpose of eliminating the cap on the amount a health
maintenance organization may be required to pay for the
costs of certain investigations conducted by the Insurance
Commissioner and the Department of Health and Mental
Hygiene; and generally relating to fees for the costs of
investigations of health maintenance organizations.

BY repealing and reenacting, with amendments,

Article - Health - General
Section 19-709
Annotated Code of Maryland
(1987 Replacement Volume)

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

Article - Health - General

19-709.

(a)  When a health maintenance organization files its
initial application for a certificate of authority to operate, it
shall pay to the Commissioner a fee of $300.

(b)  In addition to the fee required under subsection (a) of
this section, each health maintenance organization shall pay a
reasonable sum[, not exceeding $7,500,] that the Commissioner
finds to be the cost of the investigations made by the
Commissioner and the Department as required under this subtitle.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1988.

Approved May 17, 1988.

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