Ch. 35

1997 LAWS OF MARYLAND

Defined terms: "Group health insurance" § 15-301
"Insurance" § 1-101
"Insurer" § 1-101
"Policy" § 1-101

15-304. SAME — DIRECT PAYMENT OF HOSPITAL OR MEDICAL SERVICES.

(A) IN GENERAL.

SUBJECT TO SUBSECTION (B) OF THIS SECTION, ON REQUEST OF THE
POLICYHOLDER, A POLICY OF GROUP HEALTH INSURANCE MAY CONTAIN A
PROVISION THAT ALL OR PART OF THE BENEFITS PROVIDED BY THE POLICY FOR
HOSPITAL, NURSING, MEDICAL, OR SURGICAL SERVICES, AT THE INSURER'S OPTION,
MAY BE PAID DIRECTLY TO THE HOSPITAL OR PERSON THAT PROVIDES THE
SERVICES.

(B) LIMITATION.

A POLICY OF GROUP HEALTH INSURANCE MAY NOT REQUIRE THAT HOSPITAL,
NURSING, MEDICAL, OR SURGICAL SERVICES BE PROVIDED BY A PARTICULAR
HOSPITAL OR PERSON.

(C) DISCHARGE OF INSURER'S OBLIGATION.

A DIRECT PAYMENT MADE UNDER SUBSECTION (A) OF THIS SECTION
DISCHARGES THE INSURER'S OBLIGATION WITH RESPECT TO THE AMOUNT PAID.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 473.

In subsection (a) of this section, the term "benefits" is substituted for the
former term "indemnities" for clarity and consistency with other provisions of
this article.

Defined terms: "Group health insurance" § 15-301
"Insurer" § 1-101
"Person" § 1-101
"Policy" § 1-101

15-305. BLANKET HEALTH INSURANCE — IN GENERAL.

(A) DESCRIBED.

(1) BLANKET HEALTH INSURANCE IS HEALTH INSURANCE ISSUED TO
OR IN THE NAME OF PERSONS SPECIFIED IN THIS SECTION TO COVER THE GROUPS
OF INDIVIDUALS DESCRIBED IN THIS SECTION.

(2) THE PERSON TO WHICH OR IN THE NAME OF WHICH A POLICY OR
CONTRACT IS ISSUED IS DEEMED THE POLICYHOLDER.

(B) COMMON CARRIERS AND OTHER MEANS OF TRANSPORTATION.

A POLICY OR CONTRACT OF BLANKET HEALTH INSURANCE MAY BE ISSUED TO
A COMMON CARRIER OR AN OPERATOR, OWNER, OR LESSEE OF A MEANS OF

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