Ch. 1

2003 LAWS OF MARYLAND

Section 14-504, 14-505, and 14-513

Annotated Code of Maryland

(2002 Replacement Volume and 2002 Supplement)

BY repealing and reenacting, with amendments,

Chapter 153 of the Acts of the General Assembly of 2002
Section 10

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Health - General

19-219.

(d) (1) In this subsection, "base hospital rate" means the aggregate value to
participating commercial health insurance carriers of the substantial, available, and
affordable coverage purchaser differential as determined by the Commission for the
calendar year 2002.

(2)     The Commission, in accordance with this subsection, shall
[determine and collect] CALCULATE THE AMOUNT OF funds necessary to operate and
administer the Maryland Health Insurance Plan established under Title 14, Subtitle
5 of the Insurance Article.

(3)     (i) The Commission shall determine the percentage of total net
patient revenue received in calendar year 2002 by all hospitals for which the
Commission approved hospital rates that is represented by the base hospital rate.

(ii) The percentage under subparagraph (i) of this paragraph shall
be determined by dividing the base hospital rate by the total net patient revenue
received in calendar year 2002 by all hospitals for which the Commission approved
hospital rates.

(4)     On or before May 1 of each year, the Commission shall:

(i) Determine the amount of funding to allocate to the Maryland
Health Insurance Plan by multiplying the percentage determined under paragraph
(3) of this subsection by the value of the total net patient revenues received in the
immediately preceding STATE fiscal year by all hospitals for which rates were
approved by the Commission; and

(ii) Determine the share of total funding owed by each hospital for
which rates have been approved by the Commission proportionate to the percentage
of the base hospital rate attributable to each hospital.

(5)     Each hospital shall remit monthly one-twelfth of the amount
determined under paragraph (4)(ii) of this subsection to the Maryland Health
Insurance Plan Fund.

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