May18,2000

The Honorable Thomas V. Mike Miller, Jr.
President of the Senate
State House
Annapolis MD 21401

Dear Mr. President:

In accordance with Article II, Section 17 of the Maryland Constitution, I have today vetoed Senate Bill 497 - Health Insurance - Administrative Service Provider Contract Law - Clarification and Modification.

This bill provides that a Medicaid managed care organization or health maintenance organization (carrier) that enters into an administrative service provider contract is financially and administratively responsible for all claims or payments for health care services. These responsibilities are not limited by the value of the assets of a segregated fund established under an administrative service provider contract. In addition, a carrier is responsible for claims even if the contracting provider is insolvent or if any contract provision attempts to limit the carrier's responsibility.

House Bill 5, which was passed by the General Assembly and signed by me on May 11, 2000, accomplishes the same purpose. Therefore, it is not necessary for me to sign Senate Bill 497.

Sincerely,
Parris N. Glendening
Governor