ROBERT L. EHRLICH, JR., Governor                               H.B. 2

SECTION 8. AND BE IT FURTHER ENACTED, That, for taxable years
beginning after December 31, 2004, the exemption under § 10-104 of the Tax -
General Article is applicable to managed care organizations and health maintenance
organizations that are subject to the insurance premium tax under Title 6 of the
Insurance Article.

SECTION 9. AND BE IT FURTHER ENACTED, That:

(a)     Any estimated amount reserved by a medical professional liability insurer
in payment of a claim as of December 31, 2013, shall be paid from the Rate
Stabilization Account to the medical professional liability insurer;

(b)     Any portion of the Rate Stabilization Account that exceeds the amount
necessary to meet the obligations of the Maryland Medical Professional Liability
Insurance Rate Stabilization Fund, including payments made under paragraph (a) of
this section, shall revert to the Medical Assistance Program Account as enacted by
Section 2 of this Act; and

(c)      Any payments from the Rate Stabilization Account to a medical
professional liability insurer not used in payment of unresolved claims identified as of
December 31, 2013, shall be returned to the State Treasurer for reversion to the
General Fund of the State.

SECTION 10. AND BE IT FURTHER ENACTED, That the State has placed a
high priority on improving patient safety in Maryland hospitals. Recent efforts have
included the Maryland Health Care Commission's designation of the Maryland
Patient Safety Center with funding support from the Health Services Cost Review
Commission, adoption of enhanced patient safety regulations by the Department of
Health and Mental Hygiene, and new patient safety criteria for hospital capital
expenditures under the certificate of need program. In order to further these efforts,
the Health Services Cost Review Commission shall include a reasonable amount of
additional funding in hospital approved rates for hospital patient safety related
initiatives and infrastructure. The additional funding provided in accordance with
this section may not exceed an amount equal to 1% of hospital approved rates. The

SECTION 10A. AND BE IT FURTHER ENACTED, That the Health Services
Cost Review Commission Maryland Health Care Commission shall work with the
Maryland Health Care Commission Health Services Cost Review Commission, the
Department of Health and Mental Hygiene, the Maryland Patient Safety Center, the
Maryland Board of Physicians, and third-party payers to develop systemic patient
safety initiatives that extend beyond hospitals and into health care practitioner
offices. The agencies shall report to the Governor and, in accordance with § 2-1246 of
the State Government Article, the General Assembly, on their efforts on or before
October 1, 2005.

SECTION 11. AND BE IT FURTHER ENACTED, That That:

(a) Except for a managed care organization authorized by Title 15, Subtitle 1
of the Health - General Article, an insurer, nonprofit health service plan, health
maintenance organization, dental plan, organization, or any other person that
provides health benefit plans subject to regulation by the State may not reimburse a

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