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

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

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

SECTION 12. AND BE IT FURTHER ENACTED, That:

(a) The Maryland Insurance Commissioner shall:

(1)     determine whether any conduct identified in MIA No: 2003-02-032
violates the provisions of § 14-116 or § 14-139 of the Insurance Article, as in effect
before the effective date of this Act, or any other provision of the Insurance Article not
identified in MIA No: 2003-02-032;

(2)     take any action deemed appropriate in light of the determinations
made, if any, under item (1) of this subsection;

(3)     report, on or before July 1, 2003, on the determinations made, if any,
under item (1) of this subsection to:

(i) the board of directors 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; and

(ii) the Governor, and in accordance with § 2-1246 of the State
Government Article, the General Assembly; and

(4)     make recommendations regarding whether any changes to Maryland
law need to be made to ensure that the regulatory oversight of nonprofit health service
plans subject to Title 14 of the Insurance Article is sufficient to protect the public
interest, and report those recommendations, on or before July 1, 2003, to:

(i) the Governor;

(ii) in accordance with § 2-1246 of the State Government Article, the
General Assembly; and

(iii) the Office of the Attorney General.
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