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PARRIS N. GLENDENING, Governor S.B. 497
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(2) A HEALTH MAINTENANCE ORGANIZATION MAY NOT ENTER INTO AN
ADMINISTRATIVE SERVICE PROVIDER CONTRACT WITH A CONTRACTING PROVIDER
THAT HAS NOT REGISTERED WITH THE COMMISSIONER
(C) (1) AN APPLICANT FOR REGISTRATION SHALL SUBMIT AN APPLICATION
TO THE COMMISSIONER IN A FORM APPROVED BY THE COMMISSIONER AND
INCLUDE ANY INFORMATION REQUIRED UNDER SUBSECTION (E) OF THIS SECTION.
(2) A REGISTRATION UNDER THIS SECTION EXPIRES 2 YEARS FROM THE
DATE THAT THE APPLICATION IS APPROVED.
(D) THE COMMISSIONER MAY CHARGE A REGISTRATION FEE SUFFICIENT TO
COVER THE COST OF IMPLEMENTING THIS SECTION.
(E) THE COMMISSIONER MAY ADOPT REGULATIONS TO CARRY OUT THE
PROVISIONS OF THIS SECTION AND § 19-713.2 OF THIS SUBTITLE.
19-730.
(a) If any person violates any provision of § 19-729 of this subtitle, the
Commissioner may:
(1) Issue an administrative order that requires the health maintenance
organization to:
(I) Cease inappropriate conduct or practices by it or any of the
personnel employed or associated with it;
(ii) Fulfill its contractual obligations;
(iii) Provide a service that has been denied improperly;
(iv) Take appropriate steps to restore its ability to provide a service
that is provided under a contract;
(v) Cease the enrollment of any additional enrollees except newborn
children or other newly acquired dependents or existing enrollees; or
(vi) Cease any advertising or solicitation; [(2)Impose a penalty of not
more than $5,000 for each unlawful act committed;
(3) Impose any penalty that could be imposed on an insurer under §
4-113(d) of the Insurance Article;]
(2) IN ADDITION TO SUSPENDING OR REVOKING A CERTIFICATE OF
AUTHORITY:
(I) IMPOSE A PENALTY OF NOT LESS THAN $100, BUT NOT MORE
THAN $125,000 FOR EACH VIOLATION; AND
(II) ORDER THE HEALTH MAINTENANCE ORGANIZATION TO PAY
RESTITUTION TO ANY PERSON WHO HAS SUFFERED FINANCIAL INJURY BECAUSE OF
THE VIOLATION.
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