§ 19-804. Distribution from Fund.

   (a) Order of preference. -- The order of preference for distribution from the Fund shall be as follows:

   (1) disbursements from the Rate Stabilization Account to subsidize health care provider rates under § 19-805 of this subtitle;

   (2) disbursements from the Medical Assistance Program Account sufficient to:

      (i) pay for increased rates to health care providers identified under § 19-807(c)(2) of this subtitle; and

      (ii) pay managed care organization health care providers identified under § 19-807(c)(2) of this subtitle consistent with the fee-for-service health care provider rate increases;

   (3) disbursements to maintain the increase in health care provider reimbursements under § 19-807(c)(2) of this subtitle;

   (4) disbursements to increase capitation payments to managed care organizations participating in the Maryland Medical Assistance Program consistent with § 15-103(b)(18) of the Health - General Article; and

   (5) disbursements from the Medical Assistance Program Account to:

      (i) increase fee-for-service health care provider rates under § 19-807 of this subtitle; and

      (ii) pay managed care organization health care providers consistent with fee-for-service health care provider rates under § 19-807(c)(3) of this subtitle.

(b) Limit on payments to medical professional liability insurers. -- Disbursements from the Rate Stabilization Account to a medical professional liability insurer may not exceed the amount necessary to provide a rate reduction, credit, or refund to health care providers.

(c) Use of remaining funds. --

   (1) Portions of the Rate Stabilization Account that exceed the amount necessary to pay for health care provider subsidies shall remain in the Rate Stabilization Account to be used:

      (i) to pay for health care provider subsidies in calendar years 2006 through 2008; and

      (ii) after the fiscal year 2009 allocation to the Rate Stabilization Account under § 19-803(b) of this subtitle, by the Medical Assistance Program Account for the purposes specified under § 19-807(c) of this subtitle.

   (2) Any disbursements from the Rate Stabilization Account to a medical professional liability insurer that is not used to provide a rate reduction, credit, or refund to a health care provider shall be returned to the State Treasurer for reversion to the Fund.

(d) Reduction of subsidies by medical professional liability insurers. -- A medical professional liability insurer shall reduce the subsidy paid to each health care provider electing to receive a subsidy if the balance of the Rate Stabilization Account is insufficient to pay health care provider subsidies.

(e) Transfers from Rate Stabilization Account. -- Notwithstanding subsection (c) of this section or any other provision of law, in fiscal year 2009, $ 83,275,000 of the balance remaining in the Rate Stabilization Account at the end of fiscal year 2008 shall be transferred as follows:

   (1) $ 7,000,000 to the Medical Assistance Program Account, to be used by the Secretary to increase fee-for-service provider rates to dentists in fiscal year 2009;

   (2) $ 3,000,000 to the Health Care Coverage Fund established under Title 15, Subtitle 7 of the Health - General Article, to be used for allowable expenses in fiscal year 2009; and

   (3) $ 73,275,000 to the Health Care Coverage Fund established under Title 15, Subtitle 7 of the Health - General Article, to be used for allowable expenses in fiscal year 2010 and fiscal year 2011.

HISTORY: 2005, ch. 1; 2007, chs. 174, 175; 2008, ch. 36, § 5; ch. 589.