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No. 17, September Term, 1998 MARYLAND ASSOCIATION OF HEALTH MAINTENANCE ORGANIZATIONS, et al. v. HEALTH SERVICES COST REVIEW COMMISSION, et al.

[Involves The Statutory Authority Of The Maryland Health Services Cost Review Commission]

IN THE COURT OF APPEALS OF MARYLAND

No. 17 September Term, 1998 ___________________________________________

MARYLAND ASSOCIATION OF HEALTH MAINTENANCE ORGANIZATIONS, et al.

v.

HEALTH SERVICES COST REVIEW COMMISSION, et al. __________________________________________ Bell, C.J., Eldridge Rodowsky *Chasanow Raker Wilner Cathell, JJ. ___________________________________________ Opinion by Eldridge, J. __________________________________________

*Chasanow, J., now retired, participated in the hearing and conference of this case while an active member of this Court but did not participate in the decision and adoption of this opinion
Filed: December 3, 1999

The issues in this case involve the statutory authority of the Maryland Health Services Cost Review Commission. The plaintiffs-appellants, who are the Maryland Association of Health Maintenance Organizations and Deron Johnson, a member of a Health Maintenance Organization (HMO), claim that the Commission has exceeded its statutory authority in two ways: (1) by implementing the Inflation Adjustment System (IAS), and (2) by allowing excess revenue to be used toward community service programs. They also contend that the Commission violated Maryland's Administrative Procedure Act (APA) by not following APA rulemaking procedures when the IAS was implemented. The Commission argues that the plaintiffs-appellants have no standing to raise these issues. I. The General Assembly established the Health Services Cost Review Commission in 1971. See Ch. 627 of the Acts of 1971, presently codified as Maryland Code (1982, 1996 Repl. Vol., 1999 Supp.),

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Maryland Law