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S.B. 596
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Martin O'Malley, Governor
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Annapolis, MD 21401
Dear Mr. President:
In accordance with Article II, Section 17 of the Maryland Constitution, today I have
vetoed Senate Bill 596 - Discount Medical Plan Organizations and Discount Drug Plan
Organizations - Registration and Regulation.
This bill gives the Maryland Insurance Administration (MIA) authority to regulate
medical and pharmacy discount plans. It requires the plans to register with the MIA,
allows the MIA to deny or revoke their registration for fraud, misrepresentations, and
violation of other prohibitions, and places limitations on advertising, plan access,
payment to medical providers, and termination of plan membership. Various
disclosure and notification requirements to plan members are also required. The MIA
may conduct examinations of discount plans and impose corrective actions, including
cease and desist orders, restitution, and penalties.
House Bill 847, which was passed by the General Assembly and signed by me,
accomplishes the same purpose. Therefore, it is not necessary for me to sign Senate
Bill 596.
Sincerely,
Martin O'Malley
Governor
Senate Bill 596
AN ACT concerning
Discount Medical Plan Organizations and Discount Drug Plan Organizations
- Registration and Regulation
FOR the purpose of providing for the regulation by the Maryland Insurance
Commissioner of certain discount medical plan organizations and discount drug
plan organizations; requiring the registration of certain entities as discount
medical plan organizations or discount drug plan organizations; providing for
the application and renewal process for registration; authorizing the
Commissioner to deny a registration or refuse to renew, suspend, or revoke a
registration under certain circumstances; prohibiting certain actions by a
discount medical plan organization and discount drug plan organization;
requiring certain disclosures to be made by discount medical plan organizations
and discount drug plan organizations; requiring certain reimbursement if
membership in a discount medical plan or discount drug plan is canceled under
certain circumstances; requiring the Commissioner, in consultation with the
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- 4335 -
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