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Ch. 154
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2002 LAWS OF MARYLAND
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6.5-305.
(a) The Secretary of the Department may revoke or suspend a license to
operate a hospital in accordance with § 19-327 of the Health—General Article if an
acquisition occurs without the approval of the Attorney General.
(b) An acquisition of a [nonprofit health service plan or a] nonprofit health
maintenance organization may not occur without the approval of the Administration.
(c) A nonprofit health service plan or a nonprofit health maintenance
organization may not be operated for profit.
(d) If the Commissioner determines that a [nonprofit health service plan or a]
nonprofit health maintenance organization is in violation of subsection (b) or (c) of
this section, this Commissioner may, in addition to any other remedies authorized by
law, require the following:
(1) the divestiture of the acquisition;
(2) that the entity fully comply with this title; OR
(3) that the entity file a plan for conversion to a for profit entity as
required under this title[;].
(E) IF THE COMMISSIONER DETERMINES THAT A NONPROFIT HEALTH
SERVICE PLAN OR A NONPROFIT HEALTH MAINTENANCE ORGANIZATION IS IN
VIOLATION OF SUBSECTION (B) OR (C) OF THIS SECTION, THE COMMISSIONER MAY, IN
ADDITION TO ANY OTHER REMEDIES AUTHORIZED BY LAW, REQUIRE THE
FOLLOWING:
[(4)] (1) that the certificate of authority of the entity to operate as a
nonprofit health service plan or a nonprofit health maintenance organization in this
State be revoked or suspended; or
[(5)] (2) the payment of a penalty as provided for in § 4-113(d)(1) of the
Insurance Article for each violation of subsection (b) or (c) of this section.
Article - Insurance
14-116.
(D) A NONPROFIT HEALTH SERVICE PLAN FORMED OR ORGANIZED UNDER
THE LAWS OF THIS STATE MAY NOT:
(1) FORM OR ORGANIZE UNDER THE LAWS OF ANOTHER JURISDICTION
UNLESS THE COMMISSIONER DETERMINES THAT IT IS IN THE PUBLIC INTEREST; OR
(2) ALTER ITS STRUCTURE, OPERATIONS, OR AFFILIATIONS, IF SUCH
ALTERATION RESULTS IN THE FOR-PROFIT ACTIVITIES OF THE PLAN BECOMING SO
SUBSTANTIAL THAT THE INSURANCE COMMISSIONER DETERMINES THAT THE
PURPOSE OF THE NONPROFIT HEALTH SERVICE PLAN MAY NO LONGER BE
CHARACTERIZED AS OPERATING A NONPROFIT HEALTH SERVICE PLAN.
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- 1564 -
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