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PARRIS N. GLENDENING, Governor
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Ch. 331
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BY adding to
Article - Health - General
Section 19-710(e)
Annotated Code of Maryland
(1996 Replacement Volume and 1999 Supplement)
BY repealing and reenacting, with amendments,
Article - Insurance
Section 4-301, 4-304, 4-308, and 4-311
Annotated Code of Maryland
(1997 Volume and 1999 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That Section(s) 19-710(e) through (s), respectively, of Article - Health -
General of the Annotated Code of Maryland be renumbered to be Section(s) 19-710(f)
through (t), respectively.
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:
Article - Health - General
15-102.4.
(a) (1) Each managed care organization shall be actuarially sound.
(2) (i) Except as otherwise provided in this section, the surplus that a
managed care organization is required to have shall be paid in full.
(ii) A managed care organization shall have an initial surplus that
exceeds the liabilities of the managed care organization by at least $1,500,000.
(b) (1) In consultation with the Secretary, the Insurance Commissioner may
adjust the initial surplus requirement for a managed care organization that is not
licensed as a health maintenance organization. In determining whether to make an
adjustment under [paragraph (1) of this subsection] THIS PARAGRAPH, the
Commissioner shall consider:
(i) The proposed capitation level that would be received by the
managed care organization under a contract with the Department under this subtitle;
(ii) The proposed range of benefits to be provided under a contract
with the Department under this subtitle;
(iii) The existence of any commitment by the Secretary to designate
funds over and above the proposed capitation where the designated funds:
1. Are equivalent to the difference between the requirements
of § 19-710 of this [subtitle] ARTICLE and any lower requirements determined by the
Commissioner under this subparagraph: and
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