Ch. 587                                          LAWS OF MARYLAND

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

Approved May 27, 1988.

CHAPTER 587

(Senate Bill 389)

AN ACT concerning

Health Insurance - Psychiatric Halfway Houses

FOR the purpose of requiring that certain hospitals or major
medical insurance policies provide certain benefits for
residency in psychiatric halfway houses approved by the
Department of Health and Mental Hygiene; limiting the annual
amount of certain benefits payable for treatment in
psychiatric halfway houses; authorizing certain insurers to
condition payment of benefits for treatment in a psychiatric
halfway house on the certifications of certain health care
providers; specifying the applicability of the Act; and
generally relating to insurance benefits payable for
residency in psychiatric halfway houses.

BY repealing and reenacting, with amendments,

Article 48A - Insurance Code

Section 354D, 470E, and 477E

Annotated Code of Maryland

(1986 Replacement Volume and 1987 Supplement)

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

Article 48A - Insurance Code

354D.

(a) Every hospital or major medical contract or certificate
delivered or issued for delivery, within this State by a
nonprofit health service organization, including both individual
policies and group policies, must include benefits for expenses
arising from treatment of acute mental illnesses and emotional
disorders which in the professional judgment of practitioners are
subject to significant improvement through short-term therapy.
These benefits must be at least equal to the following minimum
requirements: (1) with respect to benefits for confinement as an
inpatient in a hospital, the period of confinement for which

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