ROBERT L. EHRLICH, JR., Governor                                Ch. 1

(c)      (1) The Board shall determine a standard risk rate by considering the
premium rates charged by carriers in the State for coverage comparable to that of the
Plan.

(2)     The premium rate for Plan coverage:

(i) may not be less than 110% of the standard risk rate established
under paragraph (1) of this subsection; and

(ii) may not exceed 200% of the standard risk rate.

(3)     Premium rates shall be reasonably calculated to encourage
enrollment in the Plan.

(d)     Losses incurred by the Plan shall be subsidized by the Fund.
14-513.

(a)     [Premiums] AS DETERMINED BY THE BOARD, PREMIUMS collected for the
Program shall be deposited:

(1)      to a segregated account in the Fund established under § 14-504 of
this subtitle; OR

(2)  TO A SEPARATE ACCOUNT FOR THE PROGRAM ESTABLISHED BY THE
CARRIER THAT ADMINISTERS THE PROGRAM.

(b)     In addition to premium income, the segregated account shall include:

(1)     interest and investment income attributable to Program funds; and

(2)     money deposited to the account by the carrier that administers the
Program in accordance with subsection (c) of this section.

(c)      (1) On or before April 1, 2003 and quarterly thereafter, the Program
Administrator shall deposit to the Fund under § 14-504 of this subtitle[:

(i) premiums collected; and

(ii)] the amount, in excess of premiums collected, that is necessary
to operate and administer the Program for the following quarter.

(2)     The amount deposited shall be determined by the Board based on
enrollment, expenditures, and revenue for the previous year.

(3)     The amount required by the Board under paragraph (2) of this
subsection may not exceed the value of the Program Administrator's annual premium
tax exemption under § 6-101(b) of this article FOR THE PREVIOUS CALENDAR YEAR.

(4)     Beginning July 1 of each year and quarterly thereafter, the Board
shall reimburse the Administrator for prescription drug claims and administrative
expenses incurred on behalf of the Program.

(5)     Any rebates or other discounts obtained by the Program
Administrator as a result of prescription drug purchases on behalf of Program

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