CAREFIRST LEGISLATION
On March 5, Insurance Commissioner Steve Larsen rejected an attempt for Maryland's BlueCross/BlueShield plan, CareFirst, to convert to a for-profit health plan and be acquired by California's WellPoint Health Networks, Inc. Since CareFirst has chosen not to appeal the Commissioner's decision, both the House and the Senate have introduced legislation that would refocus and reorganize the Board of Directors for CareFirst.
Both bills would legislate the non-profit mission of CareFirst and would require CareFirst to offer products in both the individual and small group insurance markets. Each bill includes specific provisions describing how the Board should be structured, the committees it maintains, and the responsibility of the Board to the corporate mission and its fiduciary duties. The two bills, though similar in intent, are not identical.
1) The house version creates a Joint BlueCross and BlueShield Oversight Committee that would evaluate and report to the General Assembly annually on the ability of CareFirst to meet the legislative requirements. The Senate version leaves such oversight to the Commissioner.
2) The bills vary in the number and sources of appointment for Board members.
3) The Senate version limits compensation of Board members to $10K and requires review of any executive officer compensation amount that exceeds $150K.
4) The termination date for current Board members differs between bills and is up for debate in both committees.
The Commissioner is highly supportive of the bill, though he has offered amendments that would require the Board maintain the ratio of representation by the D.C. and Delaware affiliates and would also require that the self-perpetuating nature of the board be removed permanently. The Senate Finance Committee introduced a related bill, Senate Bill 773, to commission an investigative committee to evaluate the possibility of criminal behavior by the Board of CareFirst. This joint legislative committee would report to the General Assembly on or before December 31, 2003.
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BILLS INTRODUCED
HEALTH CARE PRACTITIONERS
PUBLIC HEALTH
BILLS INTRODUCED
Health Care Practitioners
SB0774
Health Occupations - State Board of Physician Quality Assurance
This bill was introduced primarily to assure that the physician regulatory body remains in existence in the event
that the bills previously introduced to extend the Board of Physician Quality Assurance sunset fails. This bill
extends BPQA's existence until October 2003, after which time the Secretary of Health and Mental Hygiene is
authorized to license and discipline physicians.
The Secretary may adopt regulations to:
1) regulate the performance of acupuncturists,
2) after consulting with the Board of Pharmacy, regulate the dispensing of prescription drugs by physicians,
3) subject to the Administrative Procedures Act, deny a license to an applicant or refuse to renew or reinstate an
applicant's license for any of the reasons that are grounds for action as determined by the Secretary,
4) contract with others for the purchase of administrative and examination services to carry out the provisions of
this bill,
5) investigate alleged violations and issue subpoenas and administer oaths in connection with such
investigations,
6) authorize the use of delegation agreements,
7) determine the qualifications of an applicant for licensure,
8) require an application fee,
9) issue a license to an eligible applicant,
10) place a licensee on inactive statutes,
11) issue a limited or restricted license,
12) establish a physician rehabilitation program,
13) establish grounds for reprimand, probation, suspension, or revocation of a license,
14) reprimand a licensee, place a licensee on probation, or suspend or revoke a license,
15) impose a fine on a licensee, and
16) reinstate a license.
The Secretary may retain the current executive staff of the BPQA. Assistant Attorneys General, investigators and
hearing officers will be assigned to the Secretary for the purpose of assisting in the investigation, development
and prosecution of cases referred to the Secretary.
This bill is contingent on the failure of Senate Bill 500, House Bill 790 or House Bill 791 during the 2003
Session of the General Assembly.
Effective Date: July 1, 2003
For more information, please contact:
Sheila Higdon
[ Go to Bills Introduced]
Public Health
HB1147
Consolidation of Rural Development Programs
This bill is intended to save The Forum for Rural Maryland. The bill would:
1) rename the Forum, the Rural Maryland Council,
2) expand its membership to also include:
a) a representative of Harford County,
b) an elected vice-chairman,
3) expand its executive board to also include:
a) Secretary of Agriculture, or designee,
b) Secretary of Business and Economic Development, or designee,
c) Secretary of Housing and Community Development, or designee,
d) Secretary of DHMH, or designee,
e) Secretary of DNR, or designee,
f) Representatives of rural counties, and
4) place Council within the Maryland Department of Agriculture, including budget.
Effective Date: July 1, 2003
For more information, please contact:
Jason Spangler
SB0540
Agriculture - Restricted Use of Pesticides - Use and Access
This bill addresses homeland security by attempting to restrict the use of pesticides for potential terrorism
purposes. It requires criminal background checks for those applying for certification to use pesticides. It also
restricts the use of pesticides (by those not certified) to those that are competent, and acting under continuous
visual and voice supervision of a certified pesticide applicator. Finally, it states a fine punishment for violation of
this bill.
Effective Date: October 1, 2003
For more information, please contact:
Jason Spangler
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