(1) Any group policy, group plan, or group contract issued in this state by a health maintenance organization which provides maternity benefits shall offer the master policyholder the option to purchase coverage to pay for routine nursery care for a well newly born child for up to five (5) full days in a hospital nursery.
(2) The coverage for the well newly born child shall pay the hospital charges for each day in the hospital nursery.
(3) The requirements of this section shall apply to all policies, plans, or contracts issued by a health maintenance organization in effect on October 1, 1980, and those policies, plans or contracts issued thereafter.