Ch. 2                                       1994 LAWS OF MARYLAND

(b) The provisions of this section apply to all policies issued, renewed, modified,
altered, amended, or reissued on or after July 1, 1973.]

[354J.

(a)     After January 1, 1977, every nonprofit health service plan which proposes to
issue a group hospital policy in Maryland shall offer the prospective group policyholder at
an appropriate premium adjustment, if any, the option of providing benefits for the cost
of psychiatric care through partial hospitalization.

(b)     As used in this section, partial hospitalization means a psychiatric service
offered in a hospital or in a psychiatric day care treatment center or in a community
mental health facility providing medically directed intensive or intermediate short-term
psychiatric treatment for a period of less than 24 hours but more than 4 hours in a day for
any individual patient.                                                                                         

(c)     Benefits shall provide for, psychiatric care for a minimum of 30 partial
hospitalization treatment days during any period of 12 consecutive months.

(d)     For purposes of this section, any proposed change in benefits provided by an
existing group hospital policy shall be considered a proposal to issue a policy under
subsection (a).

(e)     The provisions of this section shall apply only if an initial enrollment of at
least 25 certificate holders under the new or .revised group policy can reasonably be
expected.]

[470E.

(a) Every individual hospital or major medical insurance policy written on an
expense-incurred basis which is delivered or issued for delivery, within this State must
include benefits for expenses arising from treatment of acute mental illnesses and
emotional disorders which in the professional judgment of practitioners are subject to
significant improvement through short-term therapy. These benefits must be at least
equal to the following minimum requirements:

(1)     With respect to benefits for confinement as an inpatient in a hospital,
the period of confinement for which benefits are payable shall be at least 30 days in any
calendar year or benefit period;

(2)     With respect to major medical expense coverage, benefits, after the
applicable deductible, for covered expenses arising from all those services, other than
inpatient, which are rendered to treat acute mental illness and emotional disorders, shall
be at a rate which is not less than 65 percent for the first 20 visits per calendar year or
benefit period and not less than 50 percent for any visits thereafter for that calendar year
or benefit period, of the benefits which the policy provides for other types of illness; and

(3)     (i) With respect to benefits for residency in a Department of Health
and Mental Hygiene approved psychiatric halfway house, the period of residency for
which benefits are payable shall be at least 120 days and shall be at a rate which is not less
than 75 percent of the per diem rate which amount may not exceed $30 per day;

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