State Law

Maryland Statutes-Article 15. Insurance

08/07/2023 Maryland Sections 15-2101 and 15-2102

Definitions; Requirements on capitated arrangements

Risk—Physicians Taking

Section 15-2101.  Definitions

(a)    In this subtitle the following words have the meanings indicated.

(b)    “Administrator” means a carrier administering a self–funded group health plan.

(c)    “Carrier” has the meaning stated in § 15–113 of this title.

(d)    “Health benefit plan” has the meaning stated in § 2–112.2 of this article.

(e)    “Health care practitioner” has the meaning stated in § 15–113 of this title.

(f)    “Member” has the meaning stated in § 15–10A–01 of this title.

(g)    “Network” has the meaning stated in § 15–112 of this title.

(h)    “Participant” means an employee or an employee’s dependent who participates in a self–funded group health insurance plan.

(i)    “Set of health care practitioners” has the meaning stated in § 15–113 of this title.

See https://mgaleg.maryland.gov/mgawebsite/laws/StatuteText?article=gin&section=15-2101&enactments=false

Section 15-2102. Requirements on capitated arrangements

(a)    This section applies to arrangements under a health benefit plan offered by a carrier or a self–funded group health insurance plan in which a capitated payment is:

(1)    calculated as a fixed amount per member or participant assigned or attributed to the health care practitioner or set of health care practitioners;

(2)    to cover the provision of a set of services defined in the health care practitioner’s or set of health care practitioners’ contract and rendered by the health care practitioner or set of health care practitioners; and

(3)    paid periodically regardless of utilization of the services by the members or participants.

(b)    Subject to the requirements of subsection (c) of this section, a health care practitioner or set of health care practitioners is not engaged in insurance business as described in § 4–205 of this article solely because the health care practitioner or set of health care practitioners enters into a contract with a carrier that includes capitated payments for services provided by the health care practitioner or set of health care practitioners.

(c)    A health care practitioner or set of health care practitioners is not engaged in insurance business as described in § 4–205(c) of this article solely because the health care practitioner or set of health care practitioners enters into a contract with an administrator that includes capitated payments for services provided by the health care practitioner or set of health care practitioners to members of a self–funded group health plan if:

(1)    the health care practitioner or set of health care practitioners participates in the administrator’s network and accepts capitated payments;

(2)    the self–funded group health plan retains the obligation to provide access to covered health care benefits to participants; and

(3)    the contract does not include other reimbursement arrangements that are considered acts of an insurance business under § 4–205(c) of this article.

(d)    Notwithstanding subsections (b) and (c) of this section, nothing in this section may be construed to:

(1)    alter any requirement for a carrier or self–funded group health plan to pay a hospital or related institution the rate approved by the Health Services Cost Review Commission for hospital services; or

(2)    supersede the Health Services Cost Review Commission’s jurisdiction or authority over rate review and approval for hospital services.

See https://mgaleg.maryland.gov/mgawebsite/laws/StatuteText?article=gin&section=15-2102&enactments=False&archived=False