Ch. 352                                    1996 LAWS OF MARYLAND

SECTION 5. AND BE IT FURTHER ENACTED, That managed care
organizations participating in the Maryland Medical Assistance Program shall reimburse
hospitals in accordance with rates established by the Health Services Cost Review
Commission.

SECTION 6. AND BE IT FURTHER ENACTED, That the Department of
Health and Mental Hygiene and the Maryland Insurance Administration shall propose
regulations establishing solvency requirements for Medicaid managed care organizations
no later than July 1, 1996.

SECTION 5. AND BE IT FURTHER ENACTED, That by July 1, 1996, the Secretary
of Health and Mental Hygiene and the Insurance Commissioner shall enter into a
memorandum of understanding under which the Commissioner shall assist in the development
of, and shall review in a timely manner, the establishment of the level of capitation payments
to a managed care organization.

SECTION 7. 6. AND BE IT FURTHER ENACTED, That the Department of
Health and Mental Hygiene and the Maryland Insurance Administration shall establish
an approval process that takes no longer than 60 days for organizations applying to be
Medicaid managed care organizations. The standards and requirements for Medicaid
managed care organization applications shall be available to the public no later than 60
days before the program takes effect.

SECTION 8. 7. AND BE IT FURTHER ENACTED, That:

(a)     The Health Resources Planning Commission, in consultation with the
Department of Health and Mental Hygiene and the Health Services Cost Review
Commission, shall study the existing impact on existing community health centers and
other primary care providers of the laws, regulations, the grant of a federal waiver, and
other governmental actions that authorize or require the enrollment of Maryland Medical
Assistance Program recipients into managed care plans or organizations.

(b)    The study shall include:

(1)     an assessment of the current availability and accessibility of primary care
services necessary to serve the Medicaid population and the uninsured, and the ability of
education programs in primary care specialties, including medical residences, to provide
clinical training sites: and

(2)     an examination of the utilization and reimbursement levels between
managed care organizations and ancillary providers of health care services to determine
the impact on access to quality medical care.

(c)     On or before November 1, 1996, the Health Resources Planning Commission
shall submit a report on the results of its investigation and study, together with any
resulting policy recommendations, to the Governor, the Secretary of Health and Mental
Hygiene, and, subject to § 2-1312 of the State Government Article, the General
Assembly.

SECTION 9. 8. AND BE IT FURTHER ENACTED, That:

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