ROBERT L. EHRLICH, JR., Governor                       Ch. 356

provisions of § 14-115(d) of the Insurance Article, as enacted by Section 1 of this Act,
may not be acquired, under Title 6.5 of the State Government Article; and

(2) the Maryland Insurance Commissioner may not approve an
application for the acquisition of a nonprofit health service plan subject to the
provisions of § 14-115(d) of the Insurance Article, as enacted by Section 1 of this Act.

SECTION 8. AND BE IT FURTHER ENACTED, That:

(a)    The provisions of § 14-139(c) of the Insurance Article, as enacted by Section
1 of this Act, shall apply to a compensation agreement that is in effect on the effective
date of this Act and entered into or revised on or after January 20, 1995 (the date on
which the Maryland Insurance Commissioner disapproved a plan of reorganization
from Blue Cross and Blue Shield of Maryland, Inc. that would have created a new for
profit holding company), including an agreement for termination, severance,
performance bonuses, or supplemental executive retirement benefits, between a
corporation organized under the laws of this State and subject to § 14-115(d) of the
Insurance Article, as enacted by Section 1 of this Act, and an officer, director, trustee,
or employee of the corporation.

(b)     In applying the provisions of § 14-139(c) of the Insurance Article, as
enacted by Section 1 of this Act, to a compensation agreement under subsection (a) of
this section, the Maryland Insurance Commissioner shall only examine any increase in
compensation that occurred after January 20, 1995.

SECTION 9. AND BE IT FURTHER ENACTED, That a member of the board of
directors of a corporation organized under the laws of this State and subject to §
14-115(d) of the Insurance Article, as enacted by Section 1 of this Act, who is a member
of the board of directors on the effective date of this Act is prohibited from serving on
the board of directors of the corporation after removal from the board under the
provisions of Sections 4 and 5 of this Act.

SECTION 10. AND BE IT FURTHER ENACTED, That it is the intent of the
General Assembly to encourage a nonprofit health service plan that is subject to §
14-115(d) of the Insurance Article, as enacted by Section 1 of this Act, to participate in
public programs, such as Medicaid and Medicare, when participation is consistent
with the mission of the nonprofit health service plan and does not impair the financial
condition of the nonprofit health service plan.

SECTION 11. AND BE IT FURTHER ENACTED, That a nonprofit health
service plan that is subject to § 14-115(d) of the Insurance Article, as enacted by
Section 1 of this Act:

(1) shall work with the Maryland Insurance Administration, the
Department of Aging, and other appropriate entities to study, and if feasible and
desirable develop, a State arrangement to offer health insurance coverage to
individuals who are eligible for the federal tax credit under § 35 of the Internal
Revenue Code; and                 

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