WILLIAM DONALD SCHAEFER, Governor                            Ch. 465

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article 48A - Insurance Code

490W.

(A)     IN THIS SECTION, "POLICY OR CERTIFICATE" MEANS ANY HEALTH
INSURANCE CONTRACT OR POLICY THAT IS ISSUED OR DELIVERED IN THE STATE
TO AN EMPLOYER BY AN INSURER OR NONPROFIT HEALTH SERVICE PLAN THAT
PROVIDES HOSPITAL, MEDICAL, OR SURGICAL BENEFITS ON AN
EXPENSE-INCURRED BASIS.

(B)     THIS SECTION DOES NOT APPLY TO A POLICY OR CERTIFICATE ISSUED TO
A SMALL EMPLOYER IN ACCORDANCE WITH TITLE 55 OF THIS ARTICLE.

(C)      (1) SUBJECT TO THE PROVISIONS OF PARAGRAPHS (2) AND (3) OF THIS
SECTION, AN INSURER OR NONPROFIT HEALTH SERVICE PLAN SHALL PROVIDE
COVERAGE TO AN INDIVIDUAL UNDER A POLICY OR CERTIFICATE REGARDLESS OF
THE HEALTH OF THE INDIVIDUAL IF:

(I)       THE INDIVIDUAL HAD COVERAGE UNDER A PRIOR POLICY OR
CERTIFICATE ISSUED BY THAT INSURER OR NONPROFIT HEALTH SERVICE PLAN;
AND

(II)     WITHIN 30 DAYS AFTER THE COVERAGE UNDER THE PRIOR
POLICY OR CERTIFICATE TERMINATES, THE INDIVIDUAL BECOMES ELIGIBLE FOR
AND ACCEPTS COVERAGE UNDER THE SUBSEQUENT POLICY OR CERTIFICATE.

(2)      AN INSURER OR NONPROFIT HEALTH SERVICE PLAN MAY EXCLUDE
COVERAGE UNDER A POLICY OR CERTIFICATE FOR A MEDICAL CONDITION OF AN
INDIVIDUAL WHO OBTAINS COVERAGE UNDER PARAGRAPH (1)(II) OF THIS
SUBSECTION TO THE EXTENT THAT:

(I)       THE POLICY OR CERTIFICATE IS ISSUED AS A PART OF A
GROUP CONTRACT; AND

(II)     THE EXCLUSION IS APPLICABLE TO ALL INDIVIDUALS INSURED
UNDER THE GROUP CONTRACT.

(3)      (I) SUBJECT TO THE PROVISIONS OF SUBPARAGRAPH (II) OF THIS
PARAGRAPH, AN INSURER OR NONPROFIT HEALTH SERVICE PLAN SHALL WAIVE A
WAITING PERIOD FOR COVERAGE OF A PREEXISTING CONDITION UNDER A
SUBSEQUENT POLICY OR CONTRACT CERTIFICATE ISSUED TO AN INDIVIDUAL IN
ACCORDANCE WITH PARAGRAPH (1)(II) OF THIS SUBSECTION TO THE EXTENT THAT
THE INDIVIDUAL HAS SATISFIED A WAITING PERIOD UNDER THE INDIVIDUAL'S
PRIOR POLICY OR CERTIFICATE.

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