Section 19-702 - Declaration of intent and policy. - Maryland Statutes

§ 19-702. Declaration of intent and policy.
 

(a)  Statement of intent.- 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)  Policy.- 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. 
 

[An. Code 1957, art. 43, § 841; 1982, ch. 21, § 2; 1999, ch. 697.]