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PARRIS N. GLENDENING, Governor Ch. 410
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MAINTENANCE ORGANIZATION SHALL COMPLY WITH SUBSECTION (C)(1) OR (2)(I) OF
THIS SECTION WITHIN 30 DAYS AFTER RECEIPT OF THE REQUESTED ADDITIONAL
INFORMATION.
(f) (1) If an insurer, nonprofit health service plan, or health maintenance
organization fails to comply with subsection (c) of this section, the insurer, nonprofit
health service plan, or health maintenance organization shall pay interest on the
amount of the claim that remains unpaid 30 days after the claim is filed RECEIVED at
the monthly rate of:
(i) 1.5% from the 31st day through the 60th day;
(ii) 2% from the 61st day through the 120th day; and
(iii) 2.5% after the 120th day.
(2) The interest paid under this subsection shall be included in any late
reimbursement without the necessity for the person that filed the original claim to
make an additional claim for that interest.
(G) AN INSURER, NONPROFIT HEALTH SERVICE PLAN. OR HEALTH
MAINTENANCE ORGANIZATION THAT VIOLATES A PROVISION OF THIS SECTION IS
SUBJECT TO:
(1) A FINE NOT EXCEEDING $500 FOR EACH VIOLATION THAT IS
ARBITRARY, AND CAPRICIOUS, BASED ON ALL AVAILABLE INFORMATION; AND
(2) THE PENALTIES PRESCRIBED UNDER § 4-113(D) OF THIS ARTICLE
FOR VIOLATIONS COMMITTED WITH A FREQUENCY THAT INDICATES A GENERAL
BUSINESS PRACTICE.
SECTION 2. AND BE IT FURTHER ENACTED, That the regulations required
under Section 1 of this Act shall be adopted published for proposal on or before
October 1, 2000 January 1, 2001. To facilitate implementation of the requirements of
this Act, the Insurance Commissioner shall convene a State Uniform Billing
Committee comprised of representatives of the affected parties to advise and assist in
the development of the regulations. The regulations required under Section 1 of this
Act shall, include standards for clean claims for services rendered in a hospital
emergency facility.
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
June 1, 2000.
Approved: May 11, 2000.
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- 2249 -
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