Ch. 501                                    1995 LAWS OF MARYLAND

(3)] An exclusion of coverage for preexisting conditions may not be applied
to health care services furnished for pregnancy or newborns.

[(4)](2) On and after January 1, 1995, a carrier may not limit coverage
under a health benefit plan for a preexisting condition.

(b) Notwithstanding subsection (a) of this section, a late enrollee may be subject
to a 12-month preexisting condition provision or subject to a waiting period until the next
open enrollment period not to exceed a 12-month period.

(c) A health benefit plan that does not use a preexisting condition provision may
impose on enrollees a waiting period not to exceed 30 days before the coverage under the
health benefit plan is effective. During the waiting period, the health benefit plan is not
required to provide health care services or benefits and a premium may not be charged to
the enrollee.

(C) A HEALTH BENEFIT PLAN THAT DOES NOT USE A PREEXISTING CONDITION
PROVISION MAY IMPOSE ON ENROLLEES:

(1) A WAITING PERIOD NOT TO EXCEED 90 DAYS; OR

(2) A SURCHARGE NOT TO EXCEED 150% OF THE COMMUNITY RATE
ESTABLISHED PURSUANT TO § 702 OF THIS SUBTITLE FOR A PERIOD OF ONE YEAR..

(d) For a period not to exceed 6 months from the date an individual becomes an
eligible employee, a health benefit plan may require deductibles and cost-sharing for
benefits for a preexisting condition of the eligible employee in amounts not exceeding one
and one-half times the amount of the standard deductibles and cost-sharing of other
eligible employees, if the employee was not previously covered by public or private health
insurance or by another health benefit arrangement, and the employee was not previously
employed by that employer.

704.

(b) A carrier that offers coverage to a small employer shall [offer coverage to all
of its eligible employees]:

(1) OFFER COVERAGE TO ALL OF ITS ELIGIBLE EMPLOYEES AND TO
ALL ELIGIBLE DEPENDENTS OF ALL OF ITS ELIGIBLE EMPLOYEES;

(2)     AT THE ELECTION OF THE SMALL EMPLOYER. OFFER COVERAGE TO
ALL PART-TIME EMPLOYEES OF THE SMALL EMPLOYER; AND

(3)     AT THE ELECTION OF THE SMALL EMPLOYER, OFFER COVERAGE TO
ALL EMPLOYEES OF THE SMALL EMPLOYER COVERED UNDER ANOTHER PUBLIC OR
PRIVATE HEALTH BENEFIT PLAN OR OTHER HEALTH BENEFIT ARRANGEMENT;

(4) A CARRIER SHALL ESTABLISH AN ANNUAL OPEN ENROLLMENT PERIOD
FOR SELF-EMPLOYED INDIVIDUALS FOR AT LEAST 30 CONSECUTIVE DAYS IN EACH
6-MONTH PERIOD; AND

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