PARRIS N. GLENDENING, Governor

S.B. 843

(1)     PROVIDE NOTICE OF THE NONRENEWAL AT LEAST 90 DAYS BEFORE
THE DATE OF THE NONRENEWAL TO EACH AFFECTED:

(I)      POLICYHOLDER;

(II)    PLAN SPONSOR;

(III)   PARTICIPANT; AND

(IV)   BENEFICIARY;

(2)     OFFER TO EACH AFFECTED PLAN SPONSOR THE OPTION TO
PURCHASE ANY OTHER HEALTH INSURANCE COVERAGE CURRENTLY BEING
OFFERED BY THE CARRIER; AND

(3)      ACT UNIFORMLY WITHOUT REGARD TO THE CLAIMS EXPERIENCE
OF ANY AFFECTED PLAN SPONSOR, OR ANY HEALTH STATUS-RELATED FACTOR OF
ANY AFFECTED INDIVIDUAL.

(B)     A CARRIER MAY ELECT NOT TO RENEW ALL GROUP HEALTH BENEFIT
PLANS IN THE STATE.

(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.

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