ROBERT L. EHRLICH, JR., Governor                             Ch. 357

in public programs, such as Medicaid and Medicare, when such 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 9. 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, shall:

(1) 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

(2) on or before August 1, 2003, in accordance with § 2-1246 of the State
Government Article, report to the Senate Finance Committee and the House Health
and Government Operations Committee on the results of its study.

SECTION 3. 10. AND BE IT FURTHER ENACTED, That this Act shall take
effect June 1, 2003. Section 6 of this Act shall remain effective for a period of 5 years
and, at the end of May 31, 2008, with no further action required by the General
Assembly, Section 6 of this Act shall be abrogated and of no further force and effect.

Article - Insurance

14-102.

(A) THE PURPOSE OF THIS SUBTITLE IS:

(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

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