Ch. 352                                    1996 LAWS OF MARYLAND

insurance premiums earned in the State on individual policies in proportion to the total health
insurance premiums earned in the State for the insurer. The insurer shall provide to the
Commissioner the information necessary to make a determination of the proportion of
individual premiums to total premiums as provided under this paragraph.

(C) (1) THE DATA REQUIRED UNDER SUBSECTION (B) OF THIS SECTION FROM A
MANAGED CARE ORGANIZATION OPERATING UNDER TITLE 15. SUBTITLE I OF THE
HEALTH - GENERAL ARTICLE SHALL BE REPORTED BY THE MANAGED CARE
ORGANIZATION IN THE AGGREGATE.

(2) AS PART OF THE REPORT REQUIRED UNDER SUBSECTION (B) OF THIS
SECTION. A MANAGED CARE ORGANIZATION SHALL:

(I) FILE A CONSOLIDATED FINANCIAL STATEMENT;

1.       COVERING THE MANAGED CARE ORGANIZATION AND ALL
OF ITS AFFILIATES AND SUBSIDIARIES; AND

2.        CONSISTING OF THE FINANCIAL STATEMENTS OF THE
MANAGED CARE ORGANIZATION AND ALL OF ITS AFFILIATES AND SUBSIDIARIES
PREPARED IN ACCORDANCE WITH STATUTORY ACCOUNTING PRINCIPLES AND ON A
FORM APPROVED BY THE COMMISSIONER AND CERTIFIED TO BY AN INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANT AS TO THE FINANCIAL CONDITION, TRANSACTIONS.
AND AFFAIRS OF THE MANAGED CARE ORGANIZATION AND ITS AFFILIATES AND
SUBSIDIARIES FOR THE IMMEDIATELY PRECEDING CALENDAR YEAR-

(II)    PROVIDE A LIST OF THE TOTAL COMPENSATION FROM THE
MANAGED CARE ORGANIZATION. INCLUDING ALL CASH AND DEFERRED
COMPENSATION. STOCK AND STOCK OPTIONS IN ADDITION TO SALARY. OF EACH
MEMBER OF THE BOARD OF DIRECTORS OF THE MANAGED CARE ORGANIZATION. AND
EACH SENIOR OFFICER OF THE MANAGED CARE ORGANIZATION OR ANY SUBSIDIARY OF
THE MANAGED CARE ORGANIZATION AS DESIGNATED BY THE COMMISSIONER; AND

(III)   PROVIDE ANY OTHER INFORMATION OR DOCUMENTS NECESSARY
FOR THE COMMISSIONER TO ASSURE COMPLIANCE WITH THIS SUBSECTION AND FOR
THE SECRETARY OF HEALTH AND MENTAL HYGIENE TO CARRY OUT TITLE 15, SUBTITLE
1 OF THE HEALTH- GENERAL ARTICLE.

(3) BEFORE A MANAGED CARE ORGANIZATION MAY ENROLL A MEDICAL
ASSISTANCE PROGRAM RECIPIENT, THE MANAGED CARE ORGANIZATION SHALL
PROVIDE TO THE COMMISSIONER A BUSINESS PLAN.

(4) CAPITATION PAYMENTS MAY BE ADJUSTED BY THE SECRETARY OF
HEALTH AND MENTAL HYGIENE IN CONSULTATION WITH THE COMMISSIONER AND IN
ACCORDANCE WITH THEIR MEMORANDUM OF UNDERSTANDING:

(I) FOR A MANAGED CARE ORGANIZATION:

1. IF THE LOSS RATIO IS LESS THAN 80% DURING CALENDAR
YEAR 1997; AND

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