PARRIS N. GLENDENING, Governor                             Ch. 501

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Section(s) 698(k), (1), (m), (n), and (o), respectively, of Article 48A
- Insurance Code of the Annotated Code of Maryland be renumbered to be Section(s)
698(l), (m), (n), (o), and (p), respectively.

Article 48A—Insurance Code

698.

(a) In this subtitle the following words have the meanings indicated.

(g) (1) "Eligible employee" means[, except as provided in paragraph (2) of this
subsection,] an employee who works on a full time basis and has a normal workweek of
30 or more hours [and is not covered under a public or private health insurance plan or
other health benefit arrangement].

(2) "Eligible employee" includes a sole proprietor, a partner of a
partnership, AND an independent contractor who is included as an employee under a
health benefit plan under this subtitle [, or a medical assistance recipient who works on a
full-time basis and has a normal workweek of 30 or more hours].

(3) "Eligible employee" does not include an individual who works on a
temporary or substitute basis or for fewer than 30 hours in a workweek.

(p) (1) "Small employer" means any person, solo proprietor, firm, corporation,
partnership, or association actively engaged in business [and, on] IF;

(I) ON at least 50 percent of its working days during the preceding
calendar year, [employed at least two but no more than 50 eligible employees,] AT
LEAST TWO BUT NO MORE THAN 50 OF THE INDIVIDUALS IT EMPLOYS:

1. WORKED ON A FULL TIME BASIS AND HAD A NORMAL
WORKWEEK OF 30 OR MORE HOURS; AND

2. WERE NOT COVERED UNDER A PUBLIC OR PRIVATE
HEALTH INSURANCE PLAN OR OTHER HEALTH BENEFIT ARRANGEMENT OTHER
THAN AS MEDICAL ASSISTANCE RECIPIENTS; AND

(II) [the] THE majority of [whom] THE INDIVIDUALS DESCRIBED
UNDER ITEM (I) OF THIS PARAGRAPH are employed within the State. [Until January 1,
1995 carriers who do not impose preexisting condition limitations may require that a small
employer have at least throe eligible employees.]

(2) If the federal Employee Retirement Income Security Act is amended to
exclude employee groups under a specific size, notwithstanding paragraph (1) of this
subsection, this subtitle shall apply to any employee group size that is excluded from that
federal Act.

(3) In determining the number of [eligible employees,] INDIVIDUALS
WHO MEET THE REQUIREMENTS UNDER PARAGRAPH (1) OF THIS SUBSECTION
companies which are affiliated companies or which are eligible to file a consolidated
federal income tax return shall be considered one employer.

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