This section does not apply to: a transaction that is preempted by federal law; or a transaction as to which: the laws of the jurisdiction in which the nonprofit health service plan is domiciled authorize the commissioner of that jurisdiction to investigate and approve an acquisition of direct or indirect control of a nonprofit health service plan by conversion, merger, consolidation, exercise of a right to acquire, or otherwise; and the Commissioner: receives notice from the commissioner of the other jurisdiction about the acquisition; and has the right to request information and documents about that acquisition. A person shall comply with the procedures required by Subtitles 3 and 4 of this title to the extent applicable before the person seeks control of a foreign nonprofit health service plan that is authorized to do business in the State under Title 4 of this article by: making a tender for, inviting tenders of, entering into an agreement to exchange securities for, or acquiring in the open market or otherwise any voting security of the plan; entering into any other agreement about voting securities under which the person directly or indirectly would control the plan by conversion or by exercise of a right to acquire voting securities of the plan; or entering into an agreement to merge or consolidate with or otherwise to acquire control of the plan. Approval by the Commissioner of an acquisition under this section is governed by § 7-306 of this title.

This section applies to a nonprofit health service plan or insurer that is being merged or consolidated with or acquired by another person. Current financing money that, in accordance with regulations adopted by the Health Services Cost Review Commission, is provided by a nonprofit health service plan or insurer to a hospital for discounted hospital rates is deemed to be security for the outstanding charges that the nonprofit health service plan or insurer owes to the hospital for bills or claims for services that the hospital provided before the merger, consolidation, or acquisition.