Ch. 35

1997 LAWS OF MARYLAND

BY THE INSURER OR NONPROFIT HEALTH SERVICE PLAN TO COMPLETE AN
APPLICATION THAT INCLUDES INFORMATION ABOUT THE INDIVIDUAL'S HEALTH
WHEN APPLYING FOR SUBSEQUENT COVERAGE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 490Y.

Subsection (a)(1) of this section is revised as a scope provision, rather than as
a definition of a "policy or certificate", for clarity and to avoid possible conflict
with the definition of "policy" in § 1-101 of this article. Correspondingly,
throughout this section, references to a "contract or policy subject to this
section" and a "contract or policy" are substituted for the former references to
a "policy or certificate" and a "policy".

In the introductory language of subsection (a)(1) of this section, the reference
to any "group or blanket" health insurance contract or policy is added to
clarify the applicability of this section.

In subsection (b)(2) of this section, the reference to accepting coverage "from
the insurer or nonprofit health service plan" is added for clarity.

In subsection (d)(1) of this section, the reference to the individual's prior
contract or policy "with the insurer or nonprofit health service plan" is added
for clarity.

In subsection (e) of this section, the reference to an individual who was
previously insured "by the insurer or nonprofit health service plan" is added
for clarity.

Also in subsection (e) of this section, the reference to completing an
application "when applying for subsequent" coverage is added for clarity.

Defined terms: "Health insurance" § 1-101
"Insurer" § 1-101
"Policy" § 1-101

SUBTITLE 6. REQUIRED REIMBURSEMENT OF INSTITUTIONS.
15-601. BENEFITS FOR USING LOW-COST HOSPITALS.

(A) SCOPE OF SECTION.

THIS SECTION APPLIES TO INSURERS AND NONPROFIT HEALTH SERVICE PLANS
THAT PROVIDE HOSPITAL BENEFITS IN THE STATE UNDER INDIVIDUAL, GROUP, OR
BLANKET HEALTH INSURANCE POLICIES.

(B) DESIGNATION OF LOW-COST HOSPITALS.

EACH ENTITY SUBJECT TO THIS SECTION THAT OFFERS BENEFITS TO AN
INSURED OR BENEFICIARY WHO USES DESIGNATED LOW-COST HOSPITALS, THAT

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