Ch. 134

1997 LAWS OF MARYLAND

(b) (1) On or before June 30 of each year, the Commissioner shall assess each
payor a fee for the upcoming fiscal year established in accordance with the provisions of
this section and § 19-1515 of the Health - General Article.

(2) For each fiscal year, the total assessment for all payors shall be:

(i) Set by a memorandum from the Maryland Health Care Access and
Cost Commission; and

(ii) Apportioned equitably by the Maryland Health Care Access and
Cost Commission between the classes of payors described under subsection (a)(3) of this
section as determined by the Maryland Health Care Access and Cost Commission.

(3) Of the total assessment apportioned under paragraph (2) of this
subsection to payors within the meaning of subsection (a)(3)(i) and (ii) of this section, the
Commissioner shall assess each such payor a fraction:

(i) The numerator of which is the payor's total premiums collected in
the State for health benefit plans for an appropriate prior 12-month period as
determined by the Commissioner; and

(ii) The denominator of which is the total premiums for health benefit
plans of all such payors collected in the State for the same period.

(4) Of the total assessment apportioned under paragraph (2) of this
subsection to payors within the meaning of subsection (a)(3)(iii) of this section, the
Commissioner shall assess each such payor a fraction:

(i) The numerator of which is one; and

(ii) The denominator of which is the total number of such payors.

(5) Notwithstanding any other provisions of this subsection, the fee assessed
on a third party administrator may not exceed 0.5% of the total administrative fees for
health benefit plans collected in the State by the third party administrator for the
previous calendar year.

(c) (1) Subject to paragraph (2) of this subsection, on or before September 1 of
each year, each payor assessed a fee in accordance with this section shall make payment
to the Commissioner.

(2) The Commissioner, in cooperation with the Maryland Health Care
Access and Cost Commission, may make provisions for partial payments.

(d) The Commissioner shall distribute the fees collected under this section to the
Health Care Access and Cost Fund established under § 19-1515 of the Health - General
Article.

(e) All payors shall cooperate fully in submitting reports and claims data and
providing any other information to the Maryland Health Care Access and Cost
Commission in accordance with Title 19, Subtitle 15 of the Health - General Article.

- 1734 -