2013 Maryland Code
INSURANCE
§ 31-107 - Maryland Health Benefit Exchange Fund.


MD Ins Code § 31-107 (2013) What's This?

§31-107.

(a) There is a Maryland Health Benefit Exchange Fund.

(b) The purpose of the Fund is to provide funding for the operation and administration of the Exchange in carrying out the purposes of the Exchange under this title.

(c) The Exchange shall administer the Fund.

(d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7-302 of the State Finance and Procurement Article.

(2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.

(e) The Fund consists of:

(1) any user fees or other assessments collected by the Exchange;

(2) income from investments made on behalf of the Fund;

(3) interest on deposits or investments of money in the Fund;

(4) money collected by the Board as a result of legal or other actions taken by the Board on behalf of the Exchange or the Fund;

(5) money donated to the Fund;

(6) money awarded to the Fund through grants; and

(7) any other money from any other source accepted for the benefit of the Fund.

(f) The Fund may be used only to provide funding for the operation and administration of the Exchange in carrying out the purposes authorized under this title.

(g) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.

(2) Any investment earnings of the Fund shall be credited to the Fund.

(3) No part of the Fund may revert or be credited to the General Fund or any special fund of the State.

(h) A debt or an obligation of the Fund is not a debt of the State or a pledge of credit of the State.

§ 31-107 - 1. Trust account.

(a) In general. -- The Board shall establish a trust account to hold premium payments accepted from qualified plan enrollees and small employers by the Exchange on behalf of a carrier under contract or other agreement.

(b) Function. -- The trust account may be used only to hold a premium payment until the Exchange transmits the premium payment to the carrier on whose behalf the Exchange accepted the premium payment.

(c) Separate records. -- The Exchange shall maintain separate records of account for each carrier on whose behalf it accepts premium payments.

(d) Payment deemed payment to carrier. -- The payment of a premium by an enrollee or a small employer to the Exchange is deemed to be a payment to the carrier on whose behalf the Exchange accepted the premium payment.

§ 31-107 - 2. Budget Appropriations.

(a) In general. --

(1) For State fiscal year 2015 and for each State fiscal year thereafter, from the funds received from the distribution of the premium tax under § 6-103.2 of this article, the Governor shall provide an appropriation in the State budget adequate to fully fund the operations of the Exchange.

(2) (i) For State fiscal year 2015, the appropriation shall be no less than $ 10,000,000.

(ii) For each State fiscal year thereafter, the appropriation shall be no less than $ 35,000,000.

(b) Use of funds. -- Funds allocated from the premium tax under subsection (a) of this section to provide the appropriation to the Exchange may be used only for the purpose of funding the operation and administration of the Exchange.

(c) Shortfalls; additional appropriations. -- If, in any State fiscal year, the amount of the allocation from the premium tax is insufficient to meet the actual expenditures incurred for the operation and administration of the Exchange, the Governor may provide an additional appropriation by deficiency appropriation.

(d) Reversion to General Fund. -- Notwithstanding § 7-304 of the State Finance and Procurement Article, funds allocated to the Exchange under this section that remain unspent at the end of a fiscal year shall revert to the General Fund of the State.

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