EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0106*
HOUSE BILL 106
J5 2lr1047
(PRE–FILED) CF 2lr1046
By: Delegate Cullison
Requested: October 29, 2021
Introduced and read first time: January 12, 2022
Assigned to: Health and Government Operations
A BILL ENTITLED
AN ACT concerning 1
Health Insurance – Nonprofit Health Service Plan – Board of Directors 2
FOR the purpose of altering the required composition of the board of directors of a nonprofit 3
health service plan; and generally relating to nonprofit health service plans. 4
BY repealing and reenacting, without amendments, 5
Article – Insurance 6
Section 14–115(d)(1), (14), and (15) 7
Annotated Code of Maryland 8
(2017 Replacement Volume and 2021 Supplement) 9
BY repealing and reenacting, with amendments, 10
Article – Insurance 11
Section 14–115(d)(2), (3), (4), and (13) 12
Annotated Code of Maryland 13
(2017 Replacement Volume and 2021 Supplement) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – Insurance 17
14–115. 18
(d) (1) This subsection applies to a corporation that is: 19
(i) issued a certificate of authority as a nonprofit health service 20
plan; and 21
2 HOUSE BILL 106
(ii) the sole member of a corporation issued a certificate of authority 1
as a nonprofit health service plan. 2
(2) The board shall be composed of AT LEAST 11 MEMBERS AND no more 3
than 23 members, including: 4
(i) one nonvoting member, who is not a member of the Maryland 5
General Assembly, appointed by and serving at the pleasure of the President of the Senate 6
of Maryland; 7
(ii) one nonvoting member, who is not a member of the Maryland 8
General Assembly, appointed by and serving at the pleasure of the Speaker of the House of 9
Delegates; [and] 10
(iii) NO MORE THAN 21 VOTING members selected by the board, in 11
accordance with the bylaws of the corporation[, including]; AND 12
(IV) two consumer members, who ARE COVERED BY THE 13
NONPROFIT HEALTH SER VICE PLAN OR ITS AFF ILIATES AT THE TIME OF THEIR 14
INITIAL ELECTION TO THE BOARD AND WHO satisfy the requirements of paragraphs (13), 15
(14), and (15) of this subsection. 16
(3) No more than [four] FIVE members of the board may be: 17
(i) licensed health care professionals; 18
(ii) hospital administrators; or 19
(iii) employees of health care professionals or hospitals. 20
(4) To the extent possible, the board shall SEEK TO include individuals 21
with A DIVERSE RANGE OF EXPERIENCE RELEVANT TO THE MISS ION OF THE 22
CORPORATION AS A NON PROFIT HEALTH SERVIC E PLAN AS REQUIRED U NDER § 23
14–102 OF THIS SUBTITLE, INCLUDING experience in DATA, CONSUMER EXPERIENCE , 24
GOVERNMENT PROGRAMS , POPULATION HEALTH , GERIATRICS, DIVERSITY, EQUITY 25
AND INCLUSION , AUDIT, HUMAN RESOURCES , BENEFIT CONSULTING , EXECUTIVE 26
LEVEL, ACTUARIAL, accounting, information technology, finance, law, large and small 27
businesses, nonprofit businesses, and organized labor. 28
(13) Of the two consumer members, one shall be a subscriber and one shall 29
be a certificate holder of the nonprofit health service plan OR ITS AFFILIATES AT THE 30
TIME OF THEIR INITIAL ELECTIO N TO THE BOARD . 31
(14) Each consumer member of the board: 32
HOUSE BILL 106 3
(i) shall be a member of the general public; 1
(ii) may not be considered an agent or employee of the State for any 2
purpose; and 3
(iii) is entitled to the same rights, powers, and privileges as the other 4
members of the board. 5
(15) A consumer member of the board may not: 6
(i) be a licensee of or otherwise be subject to regulation by the 7
Commissioner; 8
(ii) be employed by or have a financial interest in: 9
1. a nonprofit health service plan or its affiliates or 10
subsidiaries; or 11
2. a person regulated under this article or the Health – 12
General Article; or 13
(iii) within 3 years before appointment, have been employed by, had 14
a financial interest in, or have received compensation from: 15
1. a nonprofit health service plan or its affiliates or 16
subsidiaries; or 17
2. a person regulated under this article or the Health – 18
General Article. 19
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 20
1, 2022. 21