ROBERT L. EHRLICH, JR., Governor

Ch. 357

(2)     CHIROPRACTIC;

(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] BETWEEN 1 AND 10,000 covered lives in Maryland OR ISSUES
CONTRACTS FOR ONLY ONE OF THE FOLLOWING SERVICES;

(1)     PODIATRIC;

(2)     CHIROPRACTIC;

(3)     PHARMACEUTICAL;

(4)     DENTAL;

(5)     PSYCHOLOGICAL; OR

(6)     OPTOMETRIC.

(e) 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]

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