Ch. 538

1993 LAWS OF MARYLAND

477MM.

(A)     AN INSURER UNDER A CONTRACT, AGREEMENT, OR ASSIGNMENT IN
WHICH AN INDIVIDUAL RECEIVES HOME MEDICAL EQUIPMENT UNDER A HEALTH
INSURANCE POLICY OR CERTIFICATE DELIVERED OR ISSUED FOR DELIVERY IN THE
STATE THAT PROVIDES BENEFITS ON AN EXPENSE-INCURRED BASIS SHALL PAY THE
HOME MEDICAL EQUIPMENT PROVIDER DIRECTLY AND IF THE INSURED HAS
EXECUTED AN' ASSIGNMENT OF BENEFITS AND, SUBJECT TO THE COPAYMENT AND
DEDUCTIBLE PROVISIONS IN THE CONTRACT, MAY NOT REQUIRE THE PROVIDER TO
ACCEPT LESS THAN THE FULL AGREED UPON MONTHLY RENTAL AMOUNT FOR
EACH MONTH THAT USE OF THE EQUIPMENT IS AUTHORIZED BY THE INSURER IN
WHICH BENEFITS ARE PAYABLE UNDER THE INSURANCE CONTRACT.

(B)     AUTHORIZATION MAY NOT BE TERMINATED UNTIL BOTH THE PROVIDER
AND BENEFICIARY OF THE SERVICES EQUIPMENT HAVE BEEN NOTIFIED IN WRITING
THAT AUTHORIZATION IS TERMINATED.

(C)     A PURCHASE OF THE RENTED EQUIPMENT AND SERVICES MAY BE MADE
ONLY ON WRITTEN WITH THE CONSENT OF THE PROVIDER AND THE INSURER
PROVIDED THAT THE PURCHASE PRICE AND THE RENTAL PRICE OF THE EQUIPMENT
WERE DISCLOSED TO THE INSURER, UPON THE INSURER'S REQUEST, EITHER PRIOR TO
THE INITIAL ELECTION TO RENT THE EQUIPMENT OR UPON THE INSURER RECEIVING
THE INITIAL CLAIM FROM THE PROVIDER AND THERE IS NO MATERIAL CHANGE IN THE
MEDICAL CONDITION OF THE INSURED, AS CERTIFIED BY THE ATTENDING PHYSICIAN.

SECTION 2.. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 1993 January 1, 1994.

Approved May 27, 1993.

CHAPTER 538
(House Bill 607)

AN ACT concerning

Insurance — Regulation - Organization, Structure and Fees

i

FOR the purpose of altering certain fees for certain insurance licenses, certificates,
service of legal process, and filings; providing for the imposition of certain fees;
providing for the use of fees under this Act; and generally relating to fees collected
by the Insurance Commissioner establishing an independent Maryland Insurance
Administration as an independent agency of State Government; establishing the
Insurance Commissioner as the head of the Maryland Insurance Administration;
providing that the Insurance Commissioner shall be appointed by the Governor with the
advice and consent of the Senate; specifying the responsibilities, powers, and duties of
the Insurance Commissioner; providing for a term for the initial Insurance
Commissioner; providing thai certain employees of the Administration are not subject to
certain laws generally relating to State employees under certain circumstances; providing

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