MD
Maryland Senate Bill SB173

Maryland 2022 Regular Session

Maryland Senate Bill SB173 Compare Versions

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1- LAWRENCE J. HOGAN, JR., Governor Ch. 305
21
3-– 1 –
4-Chapter 305
5-(Senate Bill 173)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *sb0173*
89
9-Health Insurance – Nonprofit Health Service Plan – Board of Directors
10+SENATE BILL 173
11+J5 2lr1046
12+ (PRE–FILED) CF HB 106
13+By: Senator Feldman
14+Requested: October 29, 2021
15+Introduced and read first time: January 12, 2022
16+Assigned to: Finance
17+Committee Report: Favorable with amendments
18+Senate action: Adopted
19+Read second time: February 8, 2022
1020
11-FOR the purpose of altering the required composition of the board of directors of a nonprofit
12-health service plan; and generally relating to nonprofit health service plans.
21+CHAPTER ______
1322
14-BY repealing and reenacting, without amendments,
15- Article – Insurance
16-Section 14–115(d)(1), (14), and (15)
17- Annotated Code of Maryland
18- (2017 Replacement Volume and 2021 Supplement)
23+AN ACT concerning 1
1924
20-BY repealing and reenacting, with amendments,
21- Article – Insurance
22-Section 14–115(d)(2), (3), (4), and (13)
23- Annotated Code of Maryland
24- (2017 Replacement Volume and 2021 Supplement)
25+Health Insurance – Nonprofit Health Service Plan – Board of Directors 2
2526
26- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
27-That the Laws of Maryland read as follows:
27+FOR the purpose of altering the required composition of the board of directors of a nonprofit 3
28+health service plan; and generally relating to nonprofit health service plans. 4
2829
29-Article – Insurance
30+BY repealing and reenacting, without amendments, 5
31+ Article – Insurance 6
32+Section 14–115(d)(1), (14), and (15) 7
33+ Annotated Code of Maryland 8
34+ (2017 Replacement Volume and 2021 Supplement) 9
3035
31-14–115.
36+BY repealing and reenacting, with amendments, 10
37+ Article – Insurance 11
38+Section 14–115(d)(2), (3), (4), and (13) 12
39+ Annotated Code of Maryland 13
40+ (2017 Replacement Volume and 2021 Supplement) 14
3241
33- (d) (1) This subsection applies to a corporation that is:
42+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
43+That the Laws of Maryland read as follows: 16
3444
35- (i) issued a certificate of authority as a nonprofit health service
36-plan; and
45+Article – Insurance 17
3746
38- (ii) the sole member of a corporation issued a certificate of authority
39-as a nonprofit health service plan.
47+14–115. 18
48+ 2 SENATE BILL 173
4049
41- (2) The board shall be composed of AT LEAST 11 MEMBERS AND no more
42-than 23 members, including:
4350
44- (i) one nonvoting member, who is not a member of the Maryland
45-General Assembly, appointed by and serving at the pleasure of the President of the Senate
46-of Maryland;
47- Ch. 305 2022 LAWS OF MARYLAND
51+ (d) (1) This subsection applies to a corporation that is: 1
4852
49-– 2 –
50- (ii) one nonvoting member, who is not a member of the Maryland
51-General Assembly, appointed by and serving at the pleasure of the Speaker of the House of
52-Delegates; [and]
53+ (i) issued a certificate of authority as a nonprofit health service 2
54+plan; and 3
5355
54- (iii) NO MORE THAN 21 VOTING members selected by the board, in
55-accordance with the bylaws of the corporation[, including]; AND
56+ (ii) the sole member of a corporation issued a certificate of authority 4
57+as a nonprofit health service plan. 5
5658
57- (IV) two, INCLUDING THREE consumer members, who ARE
58-COVERED BY THE NONPR OFIT HEALTH SERVICE PLAN OR ITS AFFILIAT ES AT THE
59-TIME OF THEIR INITIA L ELECTION TO THE BO ARD AND WHO satisfy the requirements
60-of paragraphs (13), (14), and (15) of this subsection.
59+ (2) The board shall be composed of AT LEAST 11 MEMBERS AND no more 6
60+than 23 members, including: 7
6161
62- (3) No more than [four] FIVE members of the board may be:
62+ (i) one nonvoting member, who is not a member of the Maryland 8
63+General Assembly, appointed by and serving at the pleasure of the President of the Senate 9
64+of Maryland; 10
6365
64- (i) licensed health care professionals;
66+ (ii) one nonvoting member, who is not a member of the Maryland 11
67+General Assembly, appointed by and serving at the pleasure of the Speaker of the House of 12
68+Delegates; [and] 13
6569
66- (ii) hospital administrators; or
70+ (iii) NO MORE THAN 21 VOTING members selected by the board, in 14
71+accordance with the bylaws of the corporation[, including]; AND 15
6772
68- (iii) employees of health care professionals or hospitals.
73+ (IV) two, INCLUDING THREE consumer members, who ARE 16
74+COVERED BY THE NONPR OFIT HEALTH SERVICE PLAN OR ITS AFFILIAT ES AT THE 17
75+TIME OF THEIR INITIA L ELECTION TO THE BO ARD AND WHO satisfy the requirements 18
76+of paragraphs (13), (14), and (15) of this subsection. 19
6977
70- (4) To the extent possible, the board shall SEEK TO include individuals
71-with A DIVERSE RANGE OF E XPERIENCE RELEVANT TO THE MISS ION OF THE
72-CORPORATION AS A NON PROFIT HEALTH SERVIC E PLAN AS REQUIRED U NDER §
73-14–102 OF THIS SUBTITLE, INCLUDING experience in DATA, CONSUMER EXPERIENCE ,
74-GOVERNMENT PROGRAMS , POPULATION HEALTH , GERIATRICS, DIVERSITY, EQUITY
75-AND INCLUSION , AUDIT, HUMAN RESOURCES , BENEFIT CONSULTING , EXECUTIVE
76-LEVEL, ACTUARIAL, accounting, information technology, finance, law, large and small
77-businesses, nonprofit businesses, and organized labor.
78+ (3) No more than [four] FIVE members of the board may be: 20
7879
79- (13) Of the two consumer members, one shall be a subscriber and one shall
80-be a certificate holder THE THREE CONSUMER ME MBERS SHALL BE EITHE R
81-SUBSCRIBERS OR CERTI FICATE HOLDERS of the nonprofit health service plan OR ITS
82-AFFILIATES AT THE TI ME OF THEIR INITIAL ELECTION TO THE BOAR D.
80+ (i) licensed health care professionals; 21
8381
84- (14) Each consumer member of the board:
82+ (ii) hospital administrators; or 22
8583
86- (i) shall be a member of the general public;
84+ (iii) employees of health care professionals or hospitals. 23
8785
88- (ii) may not be considered an agent or employee of the State for any
89-purpose; and
86+ (4) To the extent possible, the board shall SEEK TO include individuals 24
87+with A DIVERSE RANGE OF E XPERIENCE RELEVANT TO THE MISS ION OF THE 25
88+CORPORATION AS A NON PROFIT HEALTH SERVIC E PLAN AS REQUIRED U NDER § 26
89+14–102 OF THIS SUBTITLE, INCLUDING experience in DATA, CONSUMER EXPERIENCE , 27
90+GOVERNMENT PROGRAMS , POPULATION HEALTH , GERIATRICS, DIVERSITY, EQUITY 28
91+AND INCLUSION , AUDIT, HUMAN RESOURCES , BENEFIT CONSULTING , EXECUTIVE 29
92+LEVEL, ACTUARIAL, accounting, information technology, finance, law, large and small 30
93+businesses, nonprofit businesses, and organized labor. 31
9094
91- (iii) is entitled to the same rights, powers, and privileges as the other
92-members of the board.
95+ (13) Of the two consumer members, one shall be a subscriber and one shall 32
96+be a certificate holder THE THREE CONSUMER ME MBERS SHALL BE EITHE R 33 SENATE BILL 173 3
9397
94- (15) A consumer member of the board may not: LAWRENCE J. HOGAN, JR., Governor Ch. 305
9598
96-– 3 –
99+SUBSCRIBERS OR CERTI FICATE HOLDERS of the nonprofit health service plan OR ITS 1
100+AFFILIATES AT THE TI ME OF THEIR INIT IAL ELECTION TO THE BOARD. 2
97101
98- (i) be a licensee of or otherwise be subject to regulation by the
99-Commissioner;
102+ (14) Each consumer member of the board: 3
100103
101- (ii) be employed by or have a financial interest in:
104+ (i) shall be a member of the general public; 4
102105
103- 1. a nonprofit health service plan or its affiliates or
104-subsidiaries; or
106+ (ii) may not be considered an agent or employee of the State for any 5
107+purpose; and 6
105108
106- 2. a person regulated under this article or the Health –
107-General Article; or
109+ (iii) is entitled to the same rights, powers, and privileges as the other 7
110+members of the board. 8
108111
109- (iii) within 3 years before appointment, have been employed by, had
110-a financial interest in, or have received compensation from:
112+ (15) A consumer member of the board may not: 9
111113
112- 1. a nonprofit health service plan or its affiliates or
113-subsidiaries; or
114+ (i) be a licensee of or otherwise be subject to regulation by the 10
115+Commissioner; 11
114116
115- 2. a person regulated under this article or the Health –
116-General Article.
117+ (ii) be employed by or have a financial interest in: 12
117118
118- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
119-1, 2022.
119+ 1. a nonprofit health service plan or its affiliates or 13
120+subsidiaries; or 14
120121
121-Approved by the Governor, May 12, 2022.
122+ 2. a person regulated under this article or the Health – 15
123+General Article; or 16
124+
125+ (iii) within 3 years before appointment, have been employed by, had 17
126+a financial interest in, or have received compensation from: 18
127+
128+ 1. a nonprofit health service plan or its affiliates or 19
129+subsidiaries; or 20
130+
131+ 2. a person regulated under this article or the Health – 21
132+General Article. 22
133+
134+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 23
135+1, 2022. 24
136+