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§4214. Powers of insurers and nonprofit hospital or medical service corporations


Published: 2015

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§4214. Powers of insurers and nonprofit hospital or medical service corporations








1. 
 
Subject to the provisions of sections 222, 3479 to 3482 and chapters 13 and 13-A,
an insurance company licensed in this State or a nonprofit hospital, medical or health
care service organization may establish, maintain, own, merge with, organize and operate
a health maintenance organization under this chapter, either directly as a division
or line of business, or indirectly through a subsidiary or affiliate. Subject to
the provisions of section 222 and chapters 13 and 13-A, 2 or more such insurance companies,
or nonprofit hospital, medical or health care service organizations, or subsidiaries
or affiliates, may jointly organize and operate a health maintenance organization.
The business of an insurer or hospital or medical service corporation that establishes,
maintains, owns, merges with, organizes or operates a health maintenance organization
is considered to include the providing of health care by a health maintenance organization.


[
1993, c. 702, Pt. A, §14 (AMD)
.]








1-A. 
 
A domestic insurer that establishes, maintains, merges with or organizes and operates
a health maintenance organization as a division or line of business is governed in
its investment of funds allocated to that line of business by the provisions of section
4204, subsection 3-A.


[
1993, c. 702, Pt. A, §15 (NEW)
.]








2. 
 
Notwithstanding any provision of this Title, an insurer or a nonprofit hospital
and medical service corporation may contract with a health maintenance organization
to provide insurance or similar protection against the cost of care provided through
health maintenance organizations and to provide coverage in the event of the failure
of the health maintenance organization to meet its obligations.


[
1975, c. 503, (NEW)
.]








3. 
 
The enrollees of a health maintenance organization constitute a permissible group,
under such laws, and shall not be counted as part of any group for the purposes of
chapter 35. Among other things, under such contracts, the insurer or nonprofit hospital
or medical service corporation may make benefit payments to health maintenance organizations
for health care services rendered by providers pursuant to the health maintenance
organization.


[
1975, c. 503, (NEW)
.]








4. 
 




[
1989, c. 842, §16 (RP)
.]





SECTION HISTORY

1975, c. 503, (NEW).
1989, c. 842, §16 (AMD).
1993, c. 702, §§A14,15 (AMD).