PARRIS N. GLENDENING, Governor

Ch. 35

(II) THE PARTICULAR HEALTH BENEFIT PLAN FOR ALL SMALL
EMPLOYERS IN THE STATE;

(6) IF THE COMMISSIONER FINDS THAT CONTINUATION OF COVERAGE

WOULD:

(I) NOT BE IN THE BEST INTERESTS OF POLICYHOLDERS OR
CERTIFICATE HOLDERS; OR

(II) IMPAIR THE CARRIER'S ABILITY TO MEET ITS CONTRACTUAL
OBLIGATIONS; OR

(7) FOR REASONS STATED IN § 19-725(B) OF THE HEALTH - GENERAL
ARTICLE, IF THE CARRIER IS A HEALTH MAINTENANCE ORGANIZATION.

(C) ELECTION OF CARRIER TO NONRENEW ALL PLANS.

WHEN A CARRIER ELECTS NOT TO RENEW ALL HEALTH BENEFIT PLANS IN THE
STATE, THE CARRIER:

(1) SHALL GIVE NOTICE OF ITS DECISION TO THE AFFECTED SMALL
EMPLOYERS AND THE INSURANCE REGULATORY AUTHORITY OF EACH STATE IN
WHICH AN ELIGIBLE EMPLOYEE OR DEPENDENT RESIDES AT LEAST 180 DAYS
BEFORE THE EFFECTIVE DATE OF NONRENEWAL;

(2) SHALL GIVE NOTICE TO THE COMMISSIONER AT LEAST 30 WORKING
DAYS BEFORE GIVING THE NOTICE SPECIFIED IN ITEM (1) OF THIS SUBSECTION; AND

(3) MAY NOT WRITE NEW BUSINESS FOR SMALL EMPLOYERS IN THE
STATE FOR A PERIOD OF 5 YEARS BEGINNING ON THE DATE OF NOTICE TO THE
COMMISSIONER.

(D) NOTICE TO EMPLOYEES.

WITHIN 7 DAYS AFTER CANCELLATION OR NONRENEWAL OF A HEALTH
BENEFIT PLAN, THE CARRIER SHALL SEND TO EACH ENROLLED EMPLOYEE
WRITTEN NOTICE OF ITS ACTION AND THE CONVERSION RIGHTS AVAILABLE TO
EACH ENROLLED EMPLOYEE UNDER § 15-412 OF THIS ARTICLE.

REVISOR'S NOTE; This section is new language derived without substantive
change from former Art. 48A, § 705.

In subsection (a)(1) of this section, the exception to subsection "(b)" of this
section is added for clarity. Subsection (b) of this section sets forth conditions
under which a carrier may cancel or refuse to renew a health benefit plan.
These conditions override subsection (a)(1) of this section, which requires a
carrier to renew a health benefit plan at the option of the small employer.

In subsections (a)(2) and the introductory language of (b) of this section, the
former references to a "small employer" health benefit plan are deleted as
unnecessary in light of the scope of this subtitle under § 15-1202 of this
subtitle.

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