PARRIS N. GLENDENING, Governor                              Ch. 698

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows;

Article - Insurance

15-1206.

(c) (1) Subject to the approval of the Commissioner and as provided under this
subsection and § 15-1209(d) of this subtitle, a carrier may impose reasonable minimum
participation requirements.

(2)     A carrier may not impose a requirement for minimum participation by
the eligible employees of a small employer that is greater than 75%.

(3)     In applying a minimum participation requirement to determine whether
the applicable percentage of participation is met, a carrier may not consider as eligible
employees those who have coverage under a public or private plan of health insurance or
another health benefit arrangement, including Medicare, Medicaid, and CHAMPUS, that
provides benefits similar to or exceeding the benefits provided under the Standard Plan.

(4)     A CARRIER MAY NOT IMPOSE A MINIMUM PARTICIPATION
REQUIREMENT FOR A SMALL EMPLOYER GROUP IF ANY MEMBER OF THE GROUP
PARTICIPATES IN A MEDICAL SAVINGS ACCOUNT.

15-1207.

(a) [The] IN ACCORDANCE WITH TITLE 19, SUBTITLE 15 OF THE HEALTH -
GENERAL ARTICLE, THE Commission shall adopt regulations that specify:

(1)     the Comprehensive Standard Health Benefit Plan to apply under this
subtitle [, in accordance with Title 19, Subtitle 15 of the Health - General Article]; AND

(2)     A MODIFIED HEALTH BENEFIT PLAN FOR MEDICAL SAVINGS
ACCOUNTS THAT QUALIFY UNDER THE FEDERAL HEALTH INSURANCE
PORTABILITY AND ACCOUNTABILITY ACT OF 1996, INCLUDING:

(I)      A WAIVER OF DEDUCTIBLES AS PERMITTED UNDER FEDERAL
LAW;

(II)     MINIMUM FUNDING STANDARDS FOR MEDICAL SAVINGS
ACCOUNTS; AND

(III)   AUTHORIZATION FOR OFFERING THE MODIFIED PLAN ONLY
BY THOSE PERSONS WHO OFFER THE COMPREHENSIVE STANDARD HEALTH
BENEFIT PLAN ADOPTED IN ACCORDANCE WITH ITEM (1) OF THIS SUBSECTION.

SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act shall
take effect June 1, 1997.

SECTION 4. 2. AND BE IT FURTHER ENACTED, That Section 2 of this Act
shall take effect October 1, 1997.

Approved May 22, 1997.

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