H.B. 1593

VETOES

(1) SAFEGUARDS TO ENSURE THAT THE GROUP IS A VALID EMPLOYER
AND IS NOT FORMED FOR THE PURPOSE OF SECURING HEALTH BENEFIT
COVERAGE;

(2) ASSURANCES THAT INDIVIDUALS IN THE EMPLOYER GROUP ARE
EMPLOYEES AND NOT ADDED FOR THE PURPOSES OF SECURING HEALTH BENEFIT
COVERAGE;

(3)      REQUIREMENTS THAT A MINIMUM PERCENTAGE OF ELIGIBLE
EMPLOYEES AND DEPENDENTS OBTAIN COVERAGE UNDER HEALTH BENEFIT PLANS
OFFERED THROUGH THE REGIONAL HEALTH COOPERATIVE; AND

(4)      PREPAYMENT OF PREMIUMS OR OTHER MECHANISMS TO ENSURE
THAT PAYMENT WILL BE MADE FOR COVERAGE.

(C) THE REGIONAL HEALTH COOPERATIVE MAY REQUIRE MEMBER
EMPLOYERS TO AGREE TO PARTICIPATE IN THE PROGRAM FOR A MINIMUM PERIOD
OF TIME, NOT TO EXCEED 1 YEAR, AND MAY INCLUDE IN ANY PARTICIPATION
AGREEMENTS WITH EMPLOYERS A REQUIREMENT FOR A FINANCIAL DEPOSIT OR
PROVISION FOR FINANCIAL PENALTY THAT WOULD BE INVOKED IN THE EVENT THE
MEMBER EMPLOYER VIOLATES THE PARTICIPATION AGREEMENT.

753.  CONTINUATION OF COVERAGE.

EVERY HEALTH BENEFIT PLAN WHICH IS OFFERED THROUGH A REGIONAL
HEALTH COOPERATIVE SHALL PROVIDE CONTINUATION COVERAGE REQUIRED
UNDER §§ 490G, 490H, AND 490-I OF THIS ARTICLE.

754.  SALES OR OFFERS TO SELL HEALTH BENEFIT PLANS.

A CARRIER MAY NOT SELL OR OFFER TO SELL A HEALTH BENEFIT PLAN
THROUGH A REGIONAL HEALTH COOPERATIVE EXCEPT AS AUTHORIZED UNDER
THIS SUBTITLE.

SECTION 2. AND BE IT FURTHER ENACTED, That it is the intent of the
General Assembly for the Governor to provide funding for the startup costs for the
Regional Health Cooperatives beginning on July 1, 1991. Notwithstanding any other
provision of law, the Governor may provide a deficiency appropriation in the budget
submitted at the 1995 Legislative Session in order to provide funding to support the
startup costs of the Regional Health Cooperatives.

SECTION 3. AND BE IT FURTHER ENACTED, That the captions and
catchlines contained in this Act are not law and may not be considered to have been
enacted as part of this Act.

SECTION 4. 2. AND BE IT FURTHER ENACTED, That this Act shall take
effect July June 1, 1994.

May 26, 1994

The Honorable Casper R. Taylor, Jr.

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