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PARRIS N. GLENDENING, Governor S.B. 60
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$1,250,000 but less than $1,500,000, prior to approval, the Department shall
designate funds under paragraph (1)(iii) of this subsection sufficient to provide an
initial surplus of at least $1,500,000.
(c) (1) (i) Each managed care organization shall maintain a surplus that
exceeds the liabilities of the managed care organization in the amount that is at least
equal to the greater of $750,000 or 5 percent of the subscription charges earned
during the prior calendar year as recorded in the annual report filed by the managed
care organization with the Commissioner.
(ii) No managed care organization shall be required to maintain a
surplus in excess of a value of $3,000,000.
(2) (i) For the protection of the managed care organization's enrollees
and creditors, the applicant shall deposit and maintain in trust with the State
Treasurer $100,000 in cash or government securities of the type described in §
5-701(b) of the Insurance Article.
(ii) 1. The deposits shall be accepted and held in trust by the
State Treasurer in accordance with the provisions of Title 5. Subtitle 7 of the
Insurance Article.
2. For the purpose of applying this subparagraph, a managed
care organization shall be treated as an insurer.
(D) EACH MANAGED CARE ORGANIZATION SHALL COMPLY WITH RISK BASED
CAPITAL STANDARDS IN ACCORDANCE WITH REGULATIONS ADOPTED BY THE
INSURANCE COMMISSIONER UNDER § 4-311 OF THE INSURANCE ARTICLE.
[(d)] (E) On or before June 1 of each year, the Secretary shall submit to the
General Assembly, in accordance with § 2-1246 of the State Government Article, a
report on:
(1) The number of managed care organizations for which the Secretary
has designated money to be held in trust under this [subsection] SECTION; and
(2) The amount of money held in trust by the Secretary that has been
paid out in cases of insolvency or impairment of managed care organizations.
19-710.
(E) THE PROVISIONS OF TITLE 4, SUBTITLE 3 OF THE INSURANCE ARTICLE
(RISK BASED CAPITAL STANDARDS FOR INSURERS) APPLY TO HEALTH MAINTENANCE
ORGANIZATIONS IN THE SAME MANNER AS THEY APPLY TO INSURERS.
Article — Insurance
4-301.
(a) In this subtitle the following words have the meanings indicated.
(b) "Adjusted RBC report" means an RBC report that has been adjusted by the
Commissioner in accordance with § 4-303(b) of this subtitle.
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- 3599 -
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