Maryland Insurance Section 14-513

CAUTION: READ FULL TEXT OF SECTION FOR SPECIAL NOTE

      (a)      As determined by the Board, premiums collected for the Program shall be deposited:

            (1)      to a segregated account in the Fund established under § 14-504 of this subtitle; or

            (2)      to a separate account for the Program established by the carrier that administers the Program.

      (b)      In addition to premium income, the segregated account shall include:

            (1)      interest and investment income attributable to Program funds; and

            (2)      money deposited to the account by the carrier that administers the Program in accordance with subsection (c) of this section.

      (c)      (1)      On or before April 1, 2003 and quarterly thereafter, the Program Administrator shall deposit to the Fund under § 14-504 of this subtitle the amount, in excess of premiums collected, that is necessary to operate and administer the Program for the following quarter.

            (2)      The amount deposited shall be determined by the Board based on enrollment, expenditures, and revenue for the previous year.

            (3)      The amount required by the Board under paragraph (2) of this subsection may not exceed the value of the Program Administrator's annual premium tax exemption under § 6-101(b) of this article for the previous calendar year.

            (4)      Beginning July 1 of each year and quarterly thereafter, the Board shall reimburse the Administrator for prescription drug claims and administrative expenses incurred on behalf of the Program.

            (5)      Any rebates or other discounts obtained by the Program Administrator as a result of prescription drug purchases on behalf of Program enrollees from a pharmaceutical benefit manager or pharmaceutical manufacturer shall inure to the benefit of the Program and be deposited to the Fund.

// SPECIAL NOTE: THE ABOVE SECTION WAS CHANGED BY CHAPTERS 281 AND 282 OF 2005 AND WILL REMAIN IN EFFECT UNTIL JUNE 30, 2007 //

** SPECIAL NOTE: CONTINGENCY - CHAPTERS 281 AND 282 - 2005 **

      (a)      As determined by the Board, premiums collected for the Program shall be deposited:

            (1)      to a segregated account in the Fund established under § 14-504 of this subtitle; or

            (2)      to a separate account for the Program established by the Program Administrator.

      (b)      In addition to premium income, the segregated account shall include:

            (1)      interest and investment income attributable to Program funds; and

            (2)      money deposited to the account by a nonprofit health service plan, in accordance with subsection (c) of this section.

      (c)      (1)      On or before April 1, 2003 and quarterly thereafter, the nonprofit health service plan required to subsidize the Program under § 14-106(d) of this title shall deposit to the Fund under § 14-504 of this subtitle the amount, in excess of premiums collected, that is necessary to operate and administer the Program for the following quarter.

            (2)      The amount deposited shall be determined by the Board based on enrollment, expenditures, and revenue for the previous year.

            (3)      The amount required by the Board under paragraph (2) of this subsection may not exceed the amounts specified in § 14-106(e) of this title.

            (4)      The Board shall provide funds to the Administrator, in accordance with the terms of the contract with the Administrator, for the cost of the State subsidy and administrative expenses incurred on behalf of the Program.