EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0106*
HOUSE BILL 106
J5 2lr1047
(PRE–FILED) CF SB 173
By: Delegate Cullison
Requested: October 29, 2021
Introduced and read first time: January 12, 2022
Assigned to: Health and Government Operations
Committee Report: Favorable with amendments
House action: Adopted
Read second time: February 15, 2022
CHAPTER ______
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
2 HOUSE BILL 106
(d) (1) This subsection applies to a corporation that is: 1
(i) issued a certificate of authority as a nonprofit health service 2
plan; and 3
(ii) the sole member of a corporation issued a certificate of authority 4
as a nonprofit health service plan. 5
(2) The board shall be composed of AT LEAST 11 MEMBERS AND no more 6
than 23 members, including: 7
(i) one nonvoting member, who is not a member of the Maryland 8
General Assembly, appointed by and serving at the pleasure of the President of the Senate 9
of Maryland; 10
(ii) one nonvoting member, who is not a member of the Maryland 11
General Assembly, appointed by and serving at the pleasure of the Speaker of the House of 12
Delegates; [and] 13
(iii) NO MORE THAN 21 VOTING members selected by the board, in 14
accordance with the bylaws of the corporation[, including]; AND 15
(IV) two, INCLUDING THREE consumer members, who ARE 16
COVERED BY THE NONPR OFIT HEALTH SERVICE PLAN OR ITS AFFILIAT ES AT THE 17
TIME OF THEIR INITIA L ELECTION TO THE BO ARD AND WHO satisfy the requirements 18
of paragraphs (13), (14), and (15) of this subsection. 19
(3) No more than [four] FIVE members of the board may be: 20
(i) licensed health care professionals; 21
(ii) hospital administrators; or 22
(iii) employees of health care professionals or hospitals. 23
(4) To the extent possible, the board shall SEEK TO include individuals 24
with A DIVERSE RANGE OF E XPERIENCE RELEVANT TO THE MISS ION OF THE 25
CORPORATION AS A NON PROFIT HEALTH SERVIC E PLAN AS REQUIRED U NDER § 26
14–102 OF THIS SUBTITLE, INCLUDING experience in DATA, CONSUMER EXPERIENCE , 27
GOVERNMENT PROGRAMS , POPULATION HEALTH , GERIATRICS, DIVERSITY, EQUITY 28
AND INCLUSION , AUDIT, HUMAN RESOURCES , BENEFIT CONSULTING , EXECUTIVE 29
LEVEL, ACTUARIAL, accounting, information technology, finance, law, large and small 30
businesses, nonprofit businesses, and organized labor. 31
(13) Of the two consumer members, one shall be a subscriber and one shall 32
be a certificate holder THE THREE CONSUMER ME MBERS SHALL BE EITHE R 33 HOUSE BILL 106 3
SUBSCRIBERS OR CERTI FICATE HOLDERS of the nonprofit health service plan OR ITS 1
AFFILIATES AT THE TI ME OF THEIR INIT IAL ELECTION TO THE BOARD. 2
(14) Each consumer member of the board: 3
(i) shall be a member of the general public; 4
(ii) may not be considered an agent or employee of the State for any 5
purpose; and 6
(iii) is entitled to the same rights, powers, and privileges as the other 7
members of the board. 8
(15) A consumer member of the board may not: 9
(i) be a licensee of or otherwise be subject to regulation by the 10
Commissioner; 11
(ii) be employed by or have a financial interest in: 12
1. a nonprofit health service plan or its affiliates or 13
subsidiaries; or 14
2. a person regulated under this article or the Health – 15
General Article; or 16
(iii) within 3 years before appointment, have been employed by, had 17
a financial interest in, or have received compensation from: 18
1. a nonprofit health service plan or its affiliates or 19
subsidiaries; or 20
2. a person regulated under this article or the Health – 21
General Article. 22
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 23
1, 2022. 24