PARRIS N. GLENDENING, Governor

S.B. 843

(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 TITLE 15, SUBTITLES 13 AND 14 OF THE INSURANCE
ARTICLE APPLY TO HEALTH MAINTENANCE ORGANIZATIONS.

19-706.

(n) The provisions of [Subtitles 59 and 60 of Article 48A of the Code] TITLE 15,
SUBTITLES 13 AND 14 OF THE INSURANCE ARTICLE apply to health maintenance

organizations.

SECTION 4. AND BE IT FURTHER ENACTED, That the Insurance

Commissioner may adopt regulations to enable the Maryland Insurance Administration
to establish and administer such standards relating to the provisions of this Act as may be
necessary to: (i) implement the requirements of this Act; and (ii) assure that the
Maryland Insurance Administration's regulation of health insurance carriers is not
preempted by P. L. 104-191 (The Health Insurance Portability and Accountability Act of
1996). The Commissioner may revise or amend the regulations and may broaden the
scope of the regulations to the extent necessary to maintain federal approval of
Maryland's program for regulation of health insurance carriers pursuant to the
requirements established by the United States Department of Health and Human
Services.

SECTION 5. AND BE IT FURTHER ENACTED. That, in accordance with §
2-1312 of the State Government Article, the Insurance Commissioner shall report
annually to the Senate Finance Committee and the House Economic Matters Committee
regarding the effect of this Act on rates in the individual health insurance market, and
any proposed changes to existing law. The Commissioner's report shall be made by
December 1 of each year, beginning in 1999.

SECTION 6. AND BE IT FURTHER ENACTED, That, except for the
requirements relating to certification of creditable coverage, the requirements of Section
2 of this Act relating to group contracts issued under this Act shall take effect July 1,
1997.

SECTION 7. AND BE IT FURTHER ENACTED, That the requirements
regarding guaranteed issue, guaranteed renewal, and preexisting conditions with respect
to eligible individuals, as enacted by Sections 2 and 3 of this Act, shall be implemented no
later than January 1, 1998.

SECTION 4. 8. AND BE IT FURTHER ENACTED, That Section 2 of , except
for Sections 1 and 3 of this Act, and subject to the provisions of Sections 6 and 7 of this
Act, this Act shall take effect June 1, 1997.

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