ROBERT L. EHRLICH, JR., Governor                             Ch. 322

(2002 Replacement Volume and 2003 Supplement)

BY repealing and reenacting, with amendments,
Article - Insurance
Section 15-909(b)(3)(i)
Annotated Code of Maryland
(2002 Replacement Volume and 2003 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Insurance

15-901.

(a) In this subtitle the following words have the meanings indicated.

(c) "Carrier" means an insurer, nonprofit health service plan, or fraternal
benefit society that is authorized to issue health insurance policies under this article.

(k) (1) "Medicare supplement policy" or "Medigap policy" means an
individual or group policy of health insurance or subscriber contract that is
advertised, marketed, or designed primarily as a supplement to reimbursements
under Medicare for the hospital, medical, or surgical expenses of individuals eligible
for Medicare.

(2) "Medicare supplement policy" or "Medigap policy" does not include:

(i) a policy that is issued pursuant to a contract under § 1876 of the
federal Social Security Act, 42 U.S.C. § 1395(mm); or

(ii) a policy that is issued under a demonstration project authorized
pursuant to amendments to the federal Social Security Act.

15-929.

(A) THIS SECTION APPLIES TO ANY INDIVIDUAL MEDICARE SUPPLEMENT
POLICY AND TO ANY MEDICARE SUPPLEMENT POLICY ISSUED TO A GROUP IN WHICH
AN INDIVIDUAL HAS PRIVILEGES ASSOCIATED WITH GROUP MEMBERSHIP.

(A) (B) A CARRIER THAT ISSUES MEDICARE SUPPLEMENT POLICIES SHALL
ISSUE ANY MEDICARE SUPPLEMENT POLICY THE CARRIER SELLS IN THE STATE TO
AN INDIVIDUAL WHO IS ELIGIBLE FOR MEDICARE DUE TO AGE IF THE INDIVIDUAL:

(1)      TRANSFERRED FROM A SUBSTANTIAL, AVAILABLE, AND
AFFORDABLE COVERAGE PLAN TO THE MARYLAND HEALTH INSURANCE PLAN ON
JULY 1, 2003;

(2)      IS TERMINATED FROM THE MARYLAND HEALTH INSURANCE PLAN
AS A RESULT OF ELIGIBILITY FOR MEDICARE; AND

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