Annapolis, MD (May 19, 2009) – Addressing a growing need to attract and keep more doctors in Maryland – especially in rural regions of the state - Governor Martin O’Malley today signed three bills that increase physician income and payoff education loans for doctors practicing in regions throughout the state where shortages occur. 

“This legislation puts Maryland’s families first by ensuring that doctors are open for business when and where they’re needed most,” said Governor O’Malley. “This is another important step in making sure every family in every corner of the state has access to affordable, quality health care.” 

These bills are based on recommendations from the Task Force on Health Care Access and Reimbursement. Among the broad issues examined were patients’ access to providers, the adequacy of payers’ reimbursement levels and provider participation in payers’ networks.

 “These incentives make Maryland a healthier place to live and work for doctors and the families they serve,” said DHMH Secretary, John M. Colmers. "Our state’s medical and nursing schools produce the best health professionals in the world and now we’ll be able to attract and keep more of them right here, where they’re needed.” 

HB 714/SB 627 Loan Assistance Repayment and Practice Assistance for Physicians creates a loan forgiveness program for primary care and other physicians that are determined to be in short supply in a given geographical area.  Physicians and medical residents that agree to practice in the shortage areas will be eligible to participate in the loan repayment program.  The current Loan Assistance Repayment Program, financed through joint state/federal funds, was considered of limited benefit to Maryland communities because federal health care provider shortage area definitions are structured in a way that prevented most Maryland communities from meeting the criteria.  This legislation endorses the priority of directing primary care physicians to underserved areas.

HB 255/SB 380 Health Maintenance Organizations – Payments to Nonparticipating Providers resolves the longstanding problem of reimbursement for noncontracting providers that treat HMO enrollees.  This legislation establishes a more equitable and transparent floor on payments for noncontracting providers treating HMO patients which will be pegged to the greater of 140 percent of the Medicare fee and 125 percent of the average of the in-network rate for evaluation and management services.  The legislation balances interests of health care providers in obtaining reasonable reimbursement, patients in obtaining care, especially in emergency circumstances, and payers to build provider networks.  

HB 585/SB 661 Health Insurance – Use of Physician Rating Systems by Carriers recognizes the importance of linking reimbursement to performance.  The legislation requires the Maryland Health Care Commission to designate an entity to serve as a rating examiner.  The designated rating examiner is required to establish a physician rating system that uses quality of performance and cost efficiency measurement categories.  The legislation creates a transparent process for establishing the rating system, an avenue for feedback from provider and consumer alike, and a fair appeals process.