WILLIAM DONALD SCHAEFER, Governor Ch. 610

(2) The provisions of Article 48A, §§ 162, 162A, 163,
and 164 of the Code do not apply to the rehabilitation or
liquidation of a health maintenance organization.

(c) The Commissioner may apply for an order directing the
Commissioner to rehabilitate or liquidate a health maintenance
organization:

(1)  Upon any one or more grounds set out in Article
48A, Subtitle 10 of the Code; or

(2)  When in the Commissioner's opinion the continued
operation of the health maintenance organization would be
hazardous either to its members or to the people of this State.

(D) (1) IN ADDITION TO THE COMMISSIONER'S AUTHORITY UNDER
ARTICLE 48A, SUBTITLE 10 OF THE CODE, THE COMMISSIONER AS A
REHABILITATOR OF A HEALTH MAINTENANCE ORGANIZATION MAY, SUBJECT
TO APPROVAL BY A COURT:

(I)  CHANGE PREMIUM RATES AND OTHER TERMS OF AN
INDIVIDUAL OR GROUP CONTRACT;

(II)  TERMINATE OR CHANGE THE TERMS OF:

1.  PROVIDER CONTRACTS; OR

2.  CONTRACTS WITH PARTICIPATING ENTITIES
FOR THE PROVISION OF ADMINISTRATIVE, FINANCIAL, OR MANAGEMENT
SERVICES; AND

(III)  NEGOTIATE AND, IF THE ASSUMING HEALTH
MAINTENANCE ORGANIZATION AGREES:

1.  TRANSFER THE COVERAGE OBLIGATIONS OF
THE IMPAIRED HEALTH MAINTENANCE ORGANIZATION TO AN ASSUMING
HEALTH MAINTENANCE ORGANIZATION; AND

2.  ASSIGN THE PROVIDER CONTRACTS OF THE
IMPAIRED HEALTH MAINTENANCE ORGANIZATION TO AN ASSUMING HEALTH
MAINTENANCE ORGANIZATION.

(2) BEFORE TAKING ANY ACTION UNDER SUBPARAGRAPH (II)
OF PARAGRAPH (1) OF THIS SUBSECTION, THE COMMISSIONER SHALL
CONSIDER:

(I)  THE INTERESTS OF PROVIDERS AND OTHER
PARTICIPATING ENTITIES UNDER CONTRACT WITH THE IMPAIRED HEALTH
MAINTENANCE ORGANIZATIONS; AND

(II)  THE VIABILITY OF CONTINUING THE HEALTH
PLAN.

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