Declaration of intent and policy

Checkout our iOS App for a better way to browser and research.

    (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.


Download our app to see the most-to-date content.