Ch. 287

2004 LAWS OF MARYLAND

(a)     on or before July 1, 2005, the Maryland Health Care Commission shall
adopt regulations that specify the Limited Health Benefit Plan, as required under §
15-1207(a)(2) of the Insurance Article, as enacted by Section 2 of this Act; and

(b)     in specifying the Limited Health Benefit Plan, the Maryland Health Care
Commission shall:

(1)     ensure that the actuarial value of the Limited Health Benefit Plan
does not exceed 70% of the actuarial value of the Comprehensive Standard Health
Benefit Plan as of January 1, 2004; and

(2)     consider including in the Limited Health Benefit Plan the benefits
required to be included in a limited benefits policy authorized by Chapter 434 of the
Acts of 1991;

(b) (c) the Maryland Health Care Commission and the Maryland Insurance
Commissioner shall take all other actions necessary to ensure that the Limited
Health Benefit Plan is available to be offered in the small group health insurance
market on July 1, 2005; and

(d)     on or before July 1, 2005, the Maryland Insurance Administration shall
adopt regulations that:

(1)     specify a disclosure statement notifying a small employer that the
limited health benefit plan provides only basic benefits, and that more comprehensive
coverage is available under the Comprehensive Standard Health Benefit Plan; and

(2)     require a carrier that offers the Limited Health Benefit Plan to
obtain a signed disclosure statement from the small employer at the time of the initial
purchase of coverage and at renewal; and

(e)     on or before July 1, 2005, the Maryland Insurance Administration, in
consultation with health insurance carriers and producers, shall develop a uniform
form that health insurance carriers and producers must use to collect the information
necessary to determine that a small employer that applies for coverage under a Limited
Health Benefit Plan meets the criteria required under § 15-1209(c)(2)(ii)1 and 2 of the
Insurance Article, as enacted by Section 1 of this Act.

SECTION 4. AND BE IT FURTHER ENACTED, That, on or before January 1,
2008, the Maryland Health Care Commission shall submit to the Governor and, in
accordance with § 2-1246 of the State Government Article, to the Senate Finance
Committee and the House Health and Government Operations Committee, a report
that includes:

(a) for the periods July 1, 2005 through June 30, 2006 December 31, 2005, and
from July January 1, 2006 through July 1, 2007 December 31, 2006, and January 1,
2007 through June 30, 2007, data on:

(1) the number of carriers offering Limited Health Benefit Plan policies
in the State;

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