WILLIAM DONALD SCHAEFER, Governor                        H.B. 1563

(4) IS APPROVED BY THE COMMISSIONER.

735.  PURPOSE OF SUBTITLE.

THE PURPOSES OF THIS SUBTITLE ARE:

(1) TO PROVIDE ACCESS TO HEALTH INSURANCE FOR ALL
MARYLANDERS;

(2) TO EXPAND INSURANCE MARKET REFORMS TO INDIVIDUALS;

(3) TO HELP ENSURE THAT COMPETITION AMONG CARRIERS IS BASED
ON COST EFFECTIVENESS RATHER THAN RISK SELECTION;

(4) TO REDUCE ADMINISTRATIVE COSTS BY, AMONG OTHER
MEASURES, AGGREGATING PURCHASING PROCEDURES FOR INDIVIDUALS AND
GROUPS; AND

(5) TO EXPAND CONSUMER CHOICE OF HEALTH BENEFIT PLANS AND
HEALTH PROVIDERS THROUGH THE USE OF REGIONAL HEALTH COOPERATIVES.

736.  SCOPE OF SUBTITLE.

THIS SUBTITLE DOES NOT APPLY TO AN EMPLOYER OF MORE THAN 50
EMPLOYEES WHO, ON JANUARY 1, 1994 OFFERED, AND CONTRIBUTED AT LEAST 30%
OF THE PREMIUM PAYMENTS FOR, HEALTH BENEFITS FOR ITS EMPLOYEES EITHER
THROUGH A SELF INSURED HEALTH PLAN, OR THROUGH AN INSURANCE POLICY
OR HEALTH MAINTENANCE ORGANIZATION APPROVED BY THE COMMISSIONER.

737.  REQUIRED OFFER OF HEALTH INSURANCE.

(A)     NOTHING IN THIS SECTION MAY BE CONSTRUED TO REQUIRE AN
EMPLOYER TO MAKE A FINANCIAL CONTRIBUTION TO THE PREMIUM PAYMENTS
FOR HEALTH BENEFITS FOR THE EMPLOYER'S EMPLOYEES.

(B)     SUBJECT TO THE PROVISIONS OF § 736 OF THIS SUBTITLE, AN EMPLOYER
IN THE STATE SHALL OFFER A COMPREHENSIVE STANDARD HEALTH BENEFIT PLAN
TO ITS EMPLOYEES.

(C) (1) AN EMPLOYER IN THE STATE SHALL OFFER TO ITS EMPLOYEES A
PAYROLL DEDUCTION MECHANISM FOR PAYMENT OF PREMIUMS TO THE REGIONAL
PURCHASING COOPERATIVE IN THE EMPLOYER'S REGIONAL AREA.

(2) A PAYROLL DEDUCTION MECHANISM UNDER THIS SUBSECTION
SHALL CONFORM TO THE PROCEDURES AND REQUIREMENTS ESTABLISHED BY THE
REGIONAL PURCHASING COOPERATIVE.

(D) (1) ON A COMPLAINT, FILED BY AN EMPLOYEE TO THE REGIONAL
PURCHASING COOPERATIVE, THAT AN EMPLOYER IS IN VIOLATION OF THIS
SECTION, THE REGIONAL PURCHASING COOPERATIVE:

(I) SHALL INVESTIGATE THE COMPLAINT; AND

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