Ch. 501

1995 LAWS OF MARYLAND

B. FOR WHICH THE INDIVIDUAL HAS FILED THE
APPROPRIATE INTERNAL REVENUE FORM 1010, SCHEDULE C OR F, FOR THE
PREVIOUS TAXABLE YEAR.

1. IS AN INDIVIDUAL OR SOLE PROPRIETOR WHO DERIVES A
SUBSTANTIAL PORTION OF THE INDIVIDUAL'S INCOME FROM A TRADE OR BUSINESS
THROUGH WHICH THE INDIVIDUAL OR SOLE PROPRIETOR HAS ATTEMPTED TO EARN
TAXABLE INCOME AND FOR WHICH THE INDIVIDUAL HAS FILED THE APPROPRIATE
INTERNAL REVENUE FORM 1040, SCHEDULE C OR F, FOR THE PREVIOUS TAXABLE YEAR,
A COPY OF WHICH SHALL BE FILED WITH THE CARRIER AS PROOF OF EMPLOYMENT; OR

2. IS AN INDIVIDUAL ENGAGED IN A LICENSED PROFESSION
THROUGH A PROFESSIONAL CORPORATION ORGANIZED IN ACCORDANCE WITH TITLE 5,
SUBTITLE 1 OF THE CORPORATIONS AND ASSOCIATIONS ARTICLE AND WHO RECEIVED
HEALTH BENEFITS THROUGH A PROFESSIONAL ASSOCIATION PRIOR TO JULY 1, 1994.

(2)     "SMALL EMPLOYER" INCLUDES:

(I)      IF THE REQUIREMENTS OF PARAGRAPH (1)(I)1 AND 2 OF THIS
SUBSECTION ARE SATISFIED, A LOCAL GOVERNMENT BODY OF:

1. A CHARTER COUNTY ESTABLISHED UNDER ARTICLE 25A
OF THE CODE;

2.       A CODE COUNTY ESTABLISHED UNDER ARTICLE 25B OF
THE CODE;

3.       A BOARD OF COUNTY COMMISSIONERS ESTABLISHED OR
OPERATING UNDER ARTICLE 25 OF THE CODE; AND

4.       A MUNICIPAL CORPORATION ESTABLISHED OR
OPERATING UNDER ARTICLE 23A OF THE CODE; AND

(II)    A NONPROFIT ORGANIZATION, WHICH HAS BEEN
DETERMINED BY THE INTERNAL REVENUE SERVICE TO BE EXEMPT FROM
TAXATION UNDER § 501(C)(3), (4), OR (6) OF THE INTERNAL REVENUE CODE, WITH AT
LEAST ONE ELIGIBLE. EMPLOYEE.

(3)     (I) [Until January 1, 1995 carriers who do not impose preexisting
condition limitations may require that a small employer have at least three eligible
employees.] A CARRIER MAY NOT IMPOSE A MINIMUM PARTICIPATION
REQUIREMENT FOR A SMALL EMPLOYER THAT IS GREATER THAN 75 PERCENT OF
ELIGIBLE EMPLOYEES OF THE SMALL EMPLOYER.

(II) IN APPLYING MINIMUM PARTICIPATION REQUIREMENTS WITH
RESPECT TO A SMALL EMPLOYER TO DETERMINE WHETHER THE APPLICABLE
PERCENTAGE OF PARTICIPATION IS MET, A CARRIER MAY NOT CONSIDER ELIGIBLE
EMPLOYEES OR DEPENDENTS THAT HAVE COVERAGE UNDER A PUBLIC OR PRIVATE
HEALTH INSURANCE PLAN OR OTHER HEALTH BENEFIT ARRANGEMENT,
INCLUDING MEDICARE, MEDICAID, AND CHAMPUS, THAT PROVIDES BENEFITS
SIMILAR TO OR EXCEEDING THE BENEFITS PROVIDED UNDER THE
COMPREHENSIVE STANDARD BENEFIT PLAN.

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