Ch. 93                                      2003 LAWS OF MARYLAND

[(1)] (I) are offered and priced separately from benefits specified in
accordance with § 15-1207 of this subtitle; and

[(2)] (II) do not have the effect of duplicating any of those benefits.; AND

(2) THE STANDARD PLAN SHALL BE OFFERED TO THE EMPLOYER IN A
FORMAT TO BE DETERMINED BY THE COMMISSION THAT CARRIER:

(I)      CLEARLY DISTINGUISHES THE STANDARD PLAN FROM OTHER
OFFERINGS OF THE CARRIER;

(II)     INDICATES THE STANDARD PLAN IS THE ONLY PLAN REQUIRED
BY STATE LAW; AND

(III)    SPECIFIES THAT ALL ENHANCEMENTS TO THE STANDARD
PLAN ARE NOT REQUIRED BY STATE LAW.

(e)     Notwithstanding subsection (b) of this section, a health maintenance
organization may provide a point of service delivery system as an additional benefit
through another carrier regardless of whether the other carrier also offers the
Standard Plan.

(f)      A carrier may offer coverage for dental care and services as an additional
benefit.

15-1207.

(c) (1) Subject to paragraph (2) of this subsection, the Commission shall
exclude or limit benefits or adjust cost-sharing arrangements in the Standard Plan if
the average rate for the Standard Plan exceeds [12%] 10% of the average annual
wage in the State.

(2) The Commission annually shall determine the average rate for the
Standard Plan by using the average rate submitted by each carrier that offers the
Standard Plan.

SECTION 2. AND BE IT FURTHER ENACTED, That:

(a)     On or before January 1, 2004, the Maryland Health Care Commission, in
consultation with the Maryland Insurance Administration, shall conduct an analysis
of and make recommendations on the administrative cost of health plans in the small
group market, including:

(1)     the total amount and distribution of administrative costs;

(2)     the strategies for lowering administrative costs; and

(3)     the appropriateness of the medical loss ratios specified in §
15-605(c)(7) of the Health—General § 15-605(c)(l) of the Insurance Article.

(b)     It is the intent of the General Assembly that licensed entities and
individuals including health insurers, nonprofit health service plans, health

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