Ch. 9                                        1993 LAWS OF MARYLAND

(1991 Replacement Volume and 1992 Supplement)
(As enacted by Section 2 of this Act)

BY repealing

Article 48A - Insurance Code

Section 698A

Annotated Code of Maryland

(1991 Replacement Volume and 1992 Supplement)

(As enacted by Section 2 of this Act)

BY adding to

Article 48A - Insurance Code

Section 702A

Annotated Code of Maryland

(1991 Replacement Volume and 1992 Supplement)

Preamble

WHEREAS, The nation spent 9.2 percent of our Gross Domestic Product on
health care in 1980, 13 percent in 1990, and is expected to spend 32 percent by 2030; and

WHEREAS, Maryland businesses are experiencing increases in health insurance
premiums of 15 to 20 percent each year; and

WHEREAS, The high cost of health insurance coverage is one of the primary
reasons small businesses do not offer coverage to their employees; and

WHEREAS, Maryland spent $2 billion on Medicaid during fiscal year 92; and

WHEREAS, More than 600,000 Marylanders have no health insurance coverage;
and

WHEREAS, Maryland has 32 mandated benefits more than any other State; and

WHEREAS, Mandated benefits do not apply to self-insured groups, Medicare,
Medicaid, CHAMPUS, and health maintenance organizations; and

WHEREAS, The mandates impact the health benefit coverage of 20 percent of
Maryland's population; and

WHEREAS, The growth of self-insurance creates undue and unfair pressures on 20
percent of the population relying on the fully insured market; and

WHEREAS, Many uninsured Marylanders are willing to purchase health care
coverage but are unable to afford the health insurance premiums or have a health care
condition that renders them medically uninsurable; and

WHEREAS, The increasing number of uninsured citizens is placing a tremendous
strain on our health care delivery and financing systems; and

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