The purposes of the Fund are to retain health care providers in the State by allowing medical professional liability insurers to collect rates that are less than the rates approved under § 11-201 of this article; increase fee-for-service rates paid by the Maryland Medicaid health care providers; pay managed care organization health care providers consistent with fee-for-service health care provider rates; increase capitation payments to managed care organizations participating in Medicaid; and during the period that an allocation is made to the Rate Stabilization Account, subsidize up to $350,000 annually to provide for the costs incurred by the Commissioner to administer the Fund.

There is an order of preference for distributing funds. 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.