1993 LAWS OF MARYLAND

SECTION 6. AND BE IT FURTHER ENACTED, That if Section 3 of this Act
takes effect on the occurrence of the events specified in Section 5 or 7 of this Act, the
Insurance' Commissioner shall ensure that contracts and policies issued to employers and
groups that are eligible to sponsor health benefit plans under the Employee Retirement
Income Security Act, shall be effective for 3 years and that appropriate sanctions are
included in the policies or contracts in the event of cancellation before the end of the 3-
year period.

SECTION 7. AND BE IT FURTHER ENACTED, That if the Employee
Retirement Income Security Act is amended to allow for state control of employee health
benefit plans and the State of Maryland obtains that control in accordance with federal
law, Section 3 of this Act shall take effect on the first January 1 after the date that is 1
year from the date on which the State obtains that control.

SECTION 8. AND BE IT FURTHER ENACTED, That the Insurance
Commissioner shall convene a technical advisory committee to provide advice and
recommendations to the Commissioner on the need for a reinsurance pool or other
risk sharing mechanisms to encourage insurers to remain in or enter the group or
individual health insurance market. The Commissioner shall submit a report in
accordance with § 2-1312 of the State Government Article by January 1, 1995.

SECTION 8. AND BE IT FURTHER ENACTED, That notwithstanding any other
provision of law, the Secretary of Health and Mental Hygiene shall establish a program subject
to the review of the Joint Committee on Health Care Delivery and Financing as authorized
under federal law to allow the Department of Health and Mental Hygiene to enter into prepaid
or capitated arrangements under which services are made available to medical assistance
recipients by health care providers that are not health maintenance organizations and that do
not hold a certificate of authority to operate as insurers.

SECTION 9. AND BE IT FURTHER ENACTED, That if any provision of this Act or
the application thereof to any person or circumstance is held invalid for any reason in a court
of competent jurisdiction or by the Health Care Finance Administration or the United States
Department of Health and Human Services, the invalidity does not affect other provisions or
any other application of this Act which can be given effect without the invalid provision or
application, and for this purpose the provisions of this Act are declared severable.

SECTION 10. AND BE IT FURTHER ENACTED, That the Maryland Health Care
Access and Cost Commission shall examine the desirability of seeking a waiver from the
Federal Employee Retirement Income Security Act for the State for small employers subject to
the provisions of this Act, or for larger groups. The Commission shall include the results of that
examination in its annual report submitted to the Governor, the Secretary of Health and
Mental Hygiene, and the General Assembly under § 19-1510(b) of the Health - General
Article on October 1, 1994.

SECTION 11. AND BE IT FURTHER ENACTED, That it is the intent of the
General Assembly for the Governor to provide funding for the Maryland Health Care Access
and Cost Commission beginning on July 1, 1993. Notwithstanding any other provision of law,
the Governor may provide a deficiency appropriation in the budget submitted at the 1994
Legislative Session in order to provide funding to support the Maryland Health Care Access

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Ch. 9