ROBERT L. EHRLICH, JR., Governor                                Ch. 2

GOVERNMENT ARTICLE, TO THE GENERAL ASSEMBLY ON THE NUMBER OF
MEMBERS ENROLLED IN THE PLAN AND THE COSTS TO THE PLAN ASSOCIATED WITH
PROVIDING INSURANCE TO THOSE MEMBERS.

SECTION 2. AND BE IT FURTHER ENACTED, That:

(a)     This section:

(1)     prevails over any inconsistent provisions of the Code of Maryland
Regulations 31.10.06.09-1.; and

(2)     shall apply to any individual Medicare supplement policy and to any
group Medicare supplement policy issued to a group of which an individual has
privileges associated with group membership.

(b)     In this section, the terms "carrier", "Medicare", and "Medigap policy" have
the meanings stated in § 15-901 of the Insurance Article The definitions in § 15-901
of the Insurance Article shall apply to Section 2 of this Act.

(c)     A carrier that issues Medigap policies in the State shall issue a Medigap
policy shall issue any Medigap policy the carrier sells in the State to an individual
eligible for Medicare if:

(1)     the individual is enrolled under an employee welfare benefit plan
that provides health benefits;

(2)     the employee welfare benefit plan in which the individual is enrolled
terminates;

(3)     solely because of eligibility for Medicare, the individual is not eligible
for credit for health insurance costs under § 35 of the Internal Revenue Code and
enrollment in the Maryland Health Insurance Plan under § 14-501(f) of the
Insurance Article, as enacted by Section 1 this Act; and

(4)     the individual applies for the Medigap policy no later than 63 days
after the employee welfare benefit plan terminates.

(d)     The Maryland Insurance Administration shall issue notice of the
requirements of this section to each affected carrier in the State.

SECTION 3. AND BE IT FURTHER ENACTED, That, on or before October 1,
2003, the Maryland Insurance Administration shall notify the Centers for Medicare
and Medicaid Services that the State has established the Maryland Health Insurance
Plan and shall request that the Maryland Health Insurance Plan be approved as an
acceptable "alternative mechanism" under the federal Health Insurance Portability
and Accountability Act in accordance with 45 CFR 148.128(e).

SECTION 2. 4. AND BE IT FURTHER ENACTED, That this Act shall take
effect June 1, 2003 is an emergency measure, is necessary for the immediate
preservation of the public health or safety, has been passed by a yea and nay vote
supported by three-fifths of all the members elected to each of the two Houses of the
General Assembly, and shall take effect from the date it is enacted.