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Session Laws, 2000
Volume 797, Page 3909   View pdf image
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PARRIS N. GLENDENING, Governor
S.B. 497
The Honorable Thomas V. Mike Miller, Jr.
President of the Senate
State House
Annapolis MD 21401 Dear Mr. President: In accordance with Article II, Section 17 of the Maryland Constitution, I have today
vetoed Senate Bill 497 - Health Insurance - Administrative Service Provider
Contract Law - Clarification and Modification. This bill provides that a Medicaid managed care organization or health maintenance
organization (carrier) that enters into an administrative service provider contract is
financially and administratively responsible for all claims or payments for health care
services. These responsibilities are not limited by the value of the assets of a
segregated fund established under an administrative service provider contract. In
addition, a carrier is responsible for claims even if the contracting provider is
insolvent or if any contract provision attempts to limit the carrier's responsibility. House Bill 5, which was passed by the General Assembly and signed by me on May 11,
2000, accomplishes the same purpose. Therefore, it is not necessary for me to sign
Senate Bill 497. Sincerely, Parris N. Glendening
Governor Senate Bill No. 497 AN ACT concerning Health Insurance Administrative Service Provider Contract LawClarification and Modification Maintenance Organizations - Responsibility
for and Regulation of Downstream Risk
FOR the purpose of clarifying that a health maintenance organization is responsible
for certain obligations under an administrative service provider contract under
certain circumstance
s; clarifying that certain responsibilities of a health
maintenan
ce organization are not subject to certain limitations and exist
irrespective of certain conditions; requiring a hea
lth maintenance organization
to create a segregated fund for certain purposes under certain circumstances;
requiring a health maintenance organiza
tion to audit and inspect certain books,
records, and operations of a contracting provider under certain circumstances;
requiring a health maintenance organization to include certain information in a
certain annual report; proh
ibiting the consideration of a certain segregated fund
as an asset or account of a contracting provider under certain circumstances;
applying to managed care organizations certain provisions of law that relate to
health maintenance organizations; requiring the Maryland Insurance
Administration to make a certain report to the Governor and to the General
Assembly in a certain manner by a certain date; making this Act an emergency
measure; and generally relating to the clarifica
tion and modification requiring
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Session Laws, 2000
Volume 797, Page 3909   View pdf image
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