PARRIS N. GLENDENING, Governor

Ch. 35

HEALTH INSURANCE POLICY OR CERTIFICATE THAT IS DELIVERED OR ISSUED FOR
DELIVERY IN THE STATE AND THAT PROVIDES BENEFITS ON AN
EXPENSE-INCURRED BASIS:

(I) SHALL PAY THE HOME MEDICAL EQUIPMENT PROVIDER
DIRECTLY IF THE CONTRACT, POLICY, OR CERTIFICATE OF INSURANCE PROVIDES
FOR DIRECT PAYMENT;

(II) MAY PAY THE HOME MEDICAL EQUIPMENT PROVIDER OR THE
SUBSCRIBER RECEIVING THE HOME MEDICAL EQUIPMENT, IF THE CONTRACT,
POLICY, OR CERTIFICATE OF INSURANCE DOES NOT REQUIRE DIRECT PAYMENT;
AND

(III) MAY NOT REQUIRE THE HOME MEDICAL EQUIPMENT
PROVIDER TO ACCEPT LESS THAN THE AGREED MONTHLY RENTAL AMOUNT FOR
EACH MONTH THAT USE OF THE HOME MEDICAL EQUIPMENT IS AUTHORIZED BY
THE NONPROFIT HEALTH SERVICE PLAN.

(B) TERMINATION OF AUTHORIZATION.

AUTHORIZATION MAY NOT BE TERMINATED UNTIL BOTH THE PROVIDER AND
BENEFICIARY OF THE HOME MEDICAL EQUIPMENT HAVE BEEN NOTIFIED THAT
AUTHORIZATION IS TERMINATED.

(C) PURCHASE OF RENTED EQUIPMENT.

(1) RENTED HOME MEDICAL EQUIPMENT AND SERVICES MAY BE
PURCHASED WITH THE CONSENT OF THE PROVIDER AND INSURER IF:

(I) ON THE INSURER'S REQUEST EITHER BEFORE THE INITIAL
ELECTION TO RENT THE EQUIPMENT OR ON THE INSURER'S RECEIPT OF THE
INITIAL CLAIM FROM THE PROVIDER, THE PURCHASE PRICE AND RENTAL PRICE OF
THE EQUIPMENT WERE DISCLOSED TO THE INSURER; AND

(II) THERE IS NO MATERIAL CHANGE IN THE MEDICAL CONDITION
OF THE INSURED, AS CERTIFIED BY THE ATTENDING PHYSICIAN.

(2) RENTED HOME MEDICAL EQUIPMENT AND SERVICES MAY BE
PURCHASED WITH THE CONSENT OF THE PROVIDER AND NONPROFIT HEALTH
SERVICE PLAN IN ACCORDANCE WITH THE BENEFITS AVAILABLE UNDER THE
APPLICABLE HEALTH INSURANCE POLICY OR CERTIFICATE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, §§ 354-00, 470EE, and 477-00.

In the introductory language of subsection (a)(1) of this section, the reference
to an "individual, group, or blanket" health insurance policy or certificate is
added to clarify the applicability of this section.

Also in the introductory language of subsection (a)(1) of this section, the
reference to a "contract that provides an individual with" home medical
equipment is substituted for the former references to a "contract, agreement,

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