Maryland Health - General Section 19-702

Article - Health - General

§ 19-702.

      (a)      In adopting this subtitle, the General Assembly intends to:

            (1)      Provide alternative methods for the delivery of health care services to residents of this State, with a view toward achieving greater efficiency and economy in providing these services;

            (2)      Encourage the formation of health maintenance organizations that provide health care services to subscribers or groups of subscribers who contract for these services under a system of prepayments; and

            (3)      Encourage the formation of health maintenance organizations by such diverse groups as:

                  (i)      Nonprofit health service plans;

                  (ii)      Medical health service plans;

                  (iii)      Medical care foundations;

                  (iv)      Groups of professionals, either in the form of partnerships or professional corporations;

                  (v)      Consumer sponsored organizations; or

                  (vi)      Business or legal entities.

      (b)      To carry out the intent of subsection (a) of this section, the policy of this State is to:

            (1)      Provide one overall State law that:

                  (i)      Regulates health maintenance organizations;

                  (ii)      Allows flexibility for the many forms these health maintenance organizations may take; and

                  (iii)      Facilitates public understanding and uniform administration of the rules and regulations that are adopted under this subtitle;

            (2)      Eliminate legal barriers to the organization, promotion, and expansion of health maintenance organizations;

            (3)      Provide for regulation of:

                  (i)      The quality of health care, by the Department and by professional standards review organizations where appropriate; and

                  (ii)      All other matters covered under this subtitle, by the Commissioner; and

            (4)      Exempt health maintenance organizations from the insurance laws of this State, except as set forth in this subtitle.



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