Ch. 9                                             1993 LAWS OF MARYLAND

EFFECTIVE. DURING THE WAITING PERIOD, THE HEALTH BENEFIT PLAN IS NOT
REQUIRED TO PROVIDE HEALTH CARE SERVICES OR BENEFITS AND A PREMIUM
MAY NOT BE CHARGED TO THE ENROLLEE.

(D) FOR A PERIOD NOT TO EXCEED 6 MONTHS FROM THE DATE AN
INDIVIDUAL BECOMES AN ELIGIBLE EMPLOYEE, A HEALTH BENEFIT PLAN MAY
REQUIRE DEDUCTIBLES AND COST-SHARING FOR BENEFITS FOR A PREEXISTING
CONDITION OF THE ELIGIBLE EMPLOYEE IN AMOUNTS NOT EXCEEDING ONE AND
ONE-HALF TIMES THE AMOUNT OF THE STANDARD DEDUCTIBLES AND
COST-SHARING OF OTHER ELIGIBLE EMPLOYEES, IF THE EMPLOYEE WAS NOT
PREVIOUSLY COVERED BY PUBLIC OR PRIVATE HEALTH INSURANCE OR BY
ANOTHER HEALTH BENEFIT ARRANGEMENT, AND THE EMPLOYEE WAS NOT
PREVIOUSLY EMPLOYED BY THAT EMPLOYER.

702.

(A) (1) IN ESTABLISHING A COMMUNITY RATE FOR A HEALTH BENEFIT
PLAN, A CARRIER SHALL USE A RATING METHODOLOGY THAT IS BASED ON THE
EXPERIENCE OF THE ENTIRE POOL OF RISKS COVERED BY THAT PLAN WITHOUT
REGARD TO HEALTH STATUS OR OCCUPATION OR ANY OTHER FACTOR NOT
SPECIFICALLY AUTHORIZED UNDER THIS SUBSECTION.

(2) A CARRIER MAY ONLY ADJUST THE COMMUNITY RATE FOR AGE
AND GEOGRAPHY

(I) AGE; AND

(II) GEOGRAPHY BASED ON THE FOLLOWING CONTIGUOUS AREAS OF
THE STATE:

1.        BALTIMORE METROPOLITAN AREA;

2.        THE DISTRICT OF COLUMBIA METROPOLITAN AREA;

3.        WESTERN MARYLAND; AND

4.       EASTERN AND SOUTHERN MARYLAND.

(3) RATES FOR A HEALTH BENEFIT PLAN MAY VARY BASED ON FAMILY
COMPOSITION AS APPROVED BY THE COMMISSIONER.

(B) (1) BASED ON THE ADJUSTMENTS ALLOWED UNDER SUBSECTION (A)(2)
OF THIS SECTION, A CARRIER MAY CHARGE A RATE THAT IS:

(1) (I) 50% ABOVE OR BELOW THE COMMUNITY RATE FOR ANY
HEALTH BENEFIT PLAN ISSUED, DELIVERED, OR RENEWED BETWEEN JULY 1, 1994
AND JUNE 30, 1995;

(2) (II) 40% ABOVE OR BELOW THE COMMUNITY RATE FOR ANY
HEALTH BENEFIT PLAN ISSUED, DELIVERED, OR RENEWED BETWEEN JULY 1, 1995
AND JUNE 30, 1996; AND

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