Ch. 356                                    2003 LAWS OF MARYLAND

(3)     PHARMACEUTICAL;

(4)     DENTAL;

(5)     PSYCHOLOGICAL; OR

(6)     OPTOMETRIC.
14-106.

(a)     It is the public policy of this State that the exemption from taxation for
nonprofit health service plans under § 6-101(b)(1) of this article is granted so that
funds which would otherwise be collected by the State and spent for a public purpose
shall be used in a like manner and amount by the nonprofit health service plan.

(b)     [This section does not apply to a nonprofit health service plan that insures
fewer than 10,000 covered lives in Maryland.

(c)] By March 1 of each year or a deadline otherwise imposed by the
Commissioner for good cause, each nonprofit health service plan shall file with the
Commissioner a premium tax exemption report that:

(1)     is in a form approved by the Commissioner; and

(2)     demonstrates that the plan has used funds equal to the value of the
premium tax exemption provided to the plan under § 6-101(b) of this article, in a
manner that serves the public interest in accordance with [subsections (d) and (e) of]
this section.

[(d)](C) A nonprofit health service plan may satisfy the public service
requirement [in subsection (c)(2)] of this section by establishing that, TO THE EXTENT
THE VALUE OF THE NONPROFIT HEALTH SERVICE PLAN'S PREMIUM TAX EXEMPTION
UNDER § 6-101(B) OF THIS ARTICLE EXCEEDS THE SUBSIDY REQUIRED UNDER THE
SENIOR PRESCRIPTION DRUG PROGRAM ESTABLISHED UNDER SUBTITLE 5, PART II
OF THIS TITLE, the plan has:

(1) increased access to, or the affordability of, one or more health care
products or services by offering and selling health care products or services that are not
required or provided for by law; [or]

(2) PROVIDED FINANCIAL OR IN-KIND SUPPORT FOR PUBLIC HEALTH
PROGRAMS;

(3) EMPLOYED UNDERWRITING STANDARDS IN A MANNER THAT
INCREASES THE AVAILABILITY OF ONE OR MORE HEALTH CARE SERVICES OR
PRODUCTS;

(4) EMPLOYED PRICING POLICIES THAT ENHANCE THE AFFORDABILITY
OF HEALTH CARE SERVICES OR PRODUCTS AND RESULT IN A HIGHER MEDICAL LOSS
RATIO THAN THAT ESTABLISHED BY A COMPARABLE FOR-PROFIT HEALTH INSURER;
OR

- 2504 -