WILLIAM DONALD SCHAEFER, Governor                   Ch. 754

(3) THE PLAN OR PROCEDURE PROVIDES THAT NO PART OF
THE ASSETS OR SURPLUS OF THE NONPROFIT HEALTH MAINTENANCE
ORGANIZATION WILL INURE DIRECTLY OR INDIRECTLY TO ANY OFFICER OR
DIRECTOR OF THE HEALTH MAINTENANCE ORGANIZATION.

(C) A DOMESTIC NONPROFIT HEALTH MAINTENANCE ORGANIZATION
THAT BECOMES A FOR-PROFIT HEALTH MAINTENANCE ORGANIZATION SHALL
BE GIVEN RECOGNITION IN ALL RESPECTS AS A HEALTH MAINTENANCE
ORGANIZATION FORMED UNDER THE LAWS OF THIS STATE AS OF THE PATE
OF ITS INITIAL AUTHORIZATION AS A NONPROFIT HEALTH MAINTENANCE
ORGANIZATION.

(D) THE CERTIFICATE OF AUTHORITY, AGENT APPOINTMENTS,
FORMS, AND OTHER FILINGS WHICH ARE IN EXISTENCE AT THE TIME OF
THE CONVERSION FROM A NONPROFIT HEALTH MAINTENANCE ORGANIZATION
TO A FOR-PROFIT HEALTH MAINTENANCE ORGANIZATION SHALL CONTINUE IN
FULL FORCE AND EFFECT UPON CONVERSION IF THE HEALTH MAINTENANCE
ORGANIZATION AT ALL TIMES REMAINS QUALIFIED TO ENGAGE IN BUSINESS
IN THIS STATE.------------------------------------------------------

(E) ALL OUTSTANDING CONTRACTS OF THE CONVERTING HEALTH

MAINTENANCE ORGANIZATION SHALL REMAIN IN FULL FORCE AND EFFECT

AND NEED NOT OTHERWISE BE ENDORSED UNLESS ORDERED BY THE
COMMISSIONER.

(F) THE COMMISSIONER MAY CONDUCT A HEARING CONCERNING THE
PROPOSED CONVERSION OF A NONPROFIT HEALTH MAINTENANCE
ORGANIZATION TO A FOR-PROFIT HEALTH MAINTENANCE ORGANIZATION.-----

19-714.

Each marketing document that sets forth the health care
services of a health maintenance organization shall describe
fully and clearly:

(1) The health care services under each benefit
package and every other benefit to which a member is entitled;

(2) Where and how services may be obtained;

(3) Each exclusion or limitation on any service or
other benefit that it provides;

(4) Each deductible feature; and

(5) Each copayment provision.

SECTION 2. AND BE IT FURTHER ENACTED, That the Office of
Licensing and Certification Programs of the Department of Health
and Mental Hygiene shall report to the Senate Finance Committee,
the House Economic Matters Committee, and the House Environmental

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