Ch. 294

1997 LAWS OF MARYLAND

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

(1) SHALL GIVE NOTICE OF ITS DECISION TO THE AFFECTED
INDIVIDUALS AT LEAST 180 DAYS BEFORE THE EFFECTIVE DATE OF NONRENEWAL;

(2) AT LEAST 30 WORKING DAYS BEFORE THAT NOTICE, SHALL GIVE
NOTICE TO THE COMMISSIONER; AND

(3) MAY NOT WRITE NEW BUSINESS FOR GROUPS IN THE STATE FOR A
5-YEAR PERIOD BEGINNING ON THE DATE OF NOTICE TO THE COMMISSIONER.

(D) A HEALTH MAINTENANCE ORGANIZATION NEED NOT OFFER COVERAGE
TO AN INDIVIDUAL WHO DOES NOT LIVE, RESIDE, OR WORK WITHIN THE HEALTH
MAINTENANCE ORGANIZATION'S APPROVED SERVICE AREAS.

Article - Health - General

19-706.

(N) THE PROVISIONS OF SUBTITLES 59 AND 60 OF ARTICLE 48A OF THE CODE
APPLY TO HEALTH MAINTENANCE ORGANIZATIONS.

SECTION 3. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:

Article - Insurance

15-508.

(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.

(2) "CARRIER" HAS THE MEANING STATED IN § 15-1301 OF THIS TITLE.

(3) "POLICY OR CERTIFICATE" MEANS ANY GROUP OR BLANKET
HEALTH INSURANCE CONTRACT OR POLICY THAT IS ISSUED OR DELIVERED IN THE
STATE BY AN INSURER OR NONPROFIT HEALTH SERVICE PLAN THAT PROVIDES
HOSPITAL, MEDICAL OR SURGICAL BENEFITS ON AN EXPENSE-INCURRED BASIS.

(4) "PREEXISTING CONDITION PROVISION" HAS THE MEANING STATED
IN § 15-1301 OF THIS TITLE

(5) "LATE ENROLLEE" HAS THE MEANING STATED IN § 15-1401 OF THIS

TITLE.

(B) THIS SECTION DOES NOT APPLY TO A POLICY OR CERTIFICATE ISSUED TO
A SMALL EMPLOYER IN ACCORDANCE WITH SUBTITLE 12 OF THIS TITLE, OR TO AN
INDIVIDUAL IN ACCORDANCE WITH SUBTITLE 13 OF THIS TITLE.

(C) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (D) OF THIS SECTION,
A CARRIER MAY IMPOSE A PREEXISTING CONDITION PROVISION ONLY IF IT:

- 2162 -