Ch. 273

1995 LAWS OF MARYLAND

2. Assign the provider contracts of the impaired health
maintenance organization to an assuming health maintenance organization.

(2)     Before taking any action under subparagraph (ii) of paragraph (1) of this
subsection, the Commissioner shall consider:

(i) The interests of providers and other participating entities under
contract with the impaired health maintenance organizations; and

(ii) The viability of continuing the health plan.

(3)     If a court under subparagraph (ii) of paragraph (1) of this subsection
approves a change to the terms of a contract that diminishes the compensation of a
provider or a participating entity providing administrative, financial, or management
services, the change may not:

(i) Be effective for more than 60 days; and

(ii) Except by mutual consent, be renewed or extended.

(e) In addition to the Commissioner's authority under Article 48A, Subtitle 10 of
the Code, the Commissioner as a liquidator may, subject to approval by a court:

(1)     Contract with a solvent health maintenance organization or other
appropriate entity to operate the insolvent health maintenance organization, including
the provision of medical care, on a short-term basis;

(2)     Operate the insolvent health maintenance organization, which may
include compensating health care providers in accordance with the terms of the health
care provider's contract with the insolvent health maintenance organization;

(3)     (i) Direct all other health maintenance organizations that participated
in an open enrollment process with the insolvent health maintenance organization at a
group's last regular open enrollment period to offer enrollees or subscribers of the
insolvent health maintenance organization a 30-day open enrollment period to begin on
the date of the insolvency;

(ii) Each health maintenance organization directed to offer enrollees
or subscribers of the insolvent health maintenance organization a 30-day open enrollment
period shall offer the enrollees of the insolvent health maintenance organization the same
coverage and rates that it offered the enrollees at the last regular open enrollment period;

(4)     (i) Equitably allocate the insolvent health maintenance organization's
group contracts of those groups not offered other coverage under paragraph (3) of this
subsection, among all health maintenance organizations operating within a portion of the
insolvent health maintenance organization's service area;

(ii) Before allocating the group contracts under subparagraph (i) of
this paragraph, the Commissioner shall consider the health care delivery system and
financial resources of all possible successor health maintenance organizations;

- 2128 -