Ch. 356                                    2003 LAWS OF MARYLAND

(1) TO REGULATE THE FORMATION AND OPERATION OF NONPROFIT
HEALTH SERVICE PLANS IN THE STATE; AND

(2) TO PROMOTE THE FORMATION AND EXISTENCE OF NONPROFIT
HEALTH SERVICE PLANS IN THE STATE THAT:

(I) ARE COMMITTED TO A NONPROFIT CORPORATE STRUCTURE;

(II) SEEK TO PROVIDE INDIVIDUALS, BUSINESSES, AND OTHER
GROUPS WITH AFFORDABLE AND ACCESSIBLE HEALTH INSURANCE; AND

(III) RECOGNIZE A RESPONSIBILITY TO CONTRIBUTE TO THE
IMPROVEMENT OF THE OVERALL HEALTH STATUS OF MARYLAND RESIDENTS.

(B) A NONPROFIT HEALTH SERVICE PLAN THAT COMPLIES WITH THE
PROVISIONS OF THIS SUBTITLE IS DECLARED TO BE A PUBLIC BENEFIT
CORPORATION THAT IS EXEMPT FROM TAXATION AS PROVIDED BY LAW.

(C) THE MISSION OF A NONPROFIT HEALTH SERVICE PLAN SHALL BE TO:

(1) PROVIDE AFFORDABLE AND ACCESSIBLE HEALTH INSURANCE TO
THE PLAN'S INSUREDS AND THOSE PERSONS INSURED OR ISSUED HEALTH BENEFIT
PLANS BY AFFILIATES OR SUBSIDIARIES OF THE PLAN;

(2) ASSIST AND SUPPORT PUBLIC AND PRIVATE HEALTH CARE
INITIATIVES FOR INDIVIDUALS WITHOUT HEALTH INSURANCE; AND

(3) PROMOTE THE INTEGRATION OF A STATEWIDE HEALTH CARE
SYSTEM THAT MEETS THE HEALTH CARE NEEDS OF ALL MARYLAND RESIDENTS.

(D) A NONPROFIT HEALTH SERVICE PLAN:

(1) SHALL DEVELOP GOALS, OBJECTIVES, AND STRATEGIES FOR
CARRYING OUT ITS STATUTORY MISSION;

(2) BEGINNING ON DECEMBER 1, 2003, AND CONTINUING THROUGH
JUNE 30, 2005, SHALL REPORT QUARTERLY, FOR THE PRECEDING QUARTER TO THE
JOINT NONPROFIT HEALTH SERVICE PLAN OVERSIGHT COMMITTEE ON THE
NONPROFIT HEALTH SERVICE PLAN'S COMPLIANCE WITH THE PROVISIONS OF THIS
SUBTITLE; AND

(3) SHALL PROVIDE TO THE JOINT NONPROFIT HEALTH SERVICE PLAN
OVERSIGHT COMMITTEE ANY OTHER INFORMATION NECESSARY FOR THE
COMMITTEE TO MEET THE GOALS OUTLINED UNDER § 2-10A-08 OF THE STATE
GOVERNMENT ARTICLE.

(E) ON OR BEFORE DECEMBER 1, 2005, AND ANNUALLY THEREAFTER THE
COMMISSIONER SHALL REPORT TO THE GOVERNOR AND, IN ACCORDANCE WITH §
2-1246 OF THE STATE GOVERNMENT ARTICLE, THE SENATE FINANCE COMMITTEE
AND THE HOUSE HEALTH AND GOVERNMENT OPERATIONS COMMITTEE, ON THE
COMPLIANCE OF A NONPROFIT HEALTH SERVICE PLAN SUBJECT TO § 14-115(D) OF
THIS SUBTITLE WITH THE PROVISIONS OF THIS SUBTITLE.

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