Ch. 94                                     2004 LAWS OF MARYLAND

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall apply to
health benefit plans subject to this Act that are issued, delivered, or renewed in the
State on or after October 1, 2004.

(a)     The Maryland Health Care Commission and the Maryland Insurance
Administration shall conduct a study of the affordability of private health insurance
in Maryland.

(b)     The Maryland Insurance Administration, in consultation with the
Maryland Health Care Commission, shall study:

(1)     the number of, and the regulatory requirements, including rating of
health status, relating to health insurance carriers in Delaware, the District of
Columbia, Pennsylvania, Virginia, and West Virginia; and

(2)     the role of tax-deferred health savings accounts and other models of
offering health insurance coverage designed to increase consumer awareness of the
cost of health care services.

(c)     The Maryland Health Care Commission shall study:

(1)     the factors that contribute to increases in health care costs in
Maryland, including utilization of health care services;

(2)     ways to educate consumers about health care issues and promote
personal accountability in health care;

(3)     ways in which disease management programs can promote the
appropriate management of chronic diseases;

(4)     ways to encourage strategies to purchase health care that focus on
quality, patient safety, and wellness;

(5)     ways to facilitate a more effective and efficient health care delivery
system, including improved information technology and evidence-based medicine;

(6)     innovative programs in other states designed to encourage the
appropriate use of health care services; and

(7)     ways to make health insurance more understandable to both
employers and consumers.

(d)     Based on the studies conducted under subsections (a) through (c) of this
section, the Maryland Health Commission and the Maryland Insurance
Administration shall develop recommendations on ways to make private health
insurance more affordable for Maryland residents.

(e)     The Maryland Health Commission and the Maryland Insurance
Administration, in accordance with § 2-1246 of the State Government Article, shall
submit to the General Assembly the following reports on their findings and
recommendations:

(1) an interim report on or before January 1, 2005; and

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