Section 12 of the Principal Act (inserted by section 9 of the Act of 2001) is hereby amended by-

(a) the substitution of the following clause for clause (III) of subsection (4)(c)(i):

"(III) include in that report a recommendation by the Authority that the Minister ought or ought not (as it considers appropriate having regard to the best overall interests of health insurance consumers) to exercise the power hereafter mentioned in this subsection, but no such recommendation shall be so included-

(A) unless it appears to the Authority from such an evaluation and analysis that conditions specified in the scheme related to the nature and distribution of insured risks among the registered undertakings are fulfilled, or

(B) if the Minister has already exercised that power.",

(b) the substitution of the following paragraph for paragraph (a) of subsection (5):

"(a) give notice to each registered undertaking (other than a restricted membership undertaking that has served a notice under subsection (2)(b)) of the fact that it proposes to include such a recommendation in the report, the nature of that proposed recommendation and the reasons therefor,",

and