Minnesota Statutes § 62D.042 - INITIAL NET WORTH REQUIREMENT

§ Subdivision 1.Definition. For purposes of this section, if a health maintenance organization offers supplemental benefits as described in section 62D.05, subdivision 6, "expenses" does not include any expenses attributable to the supplemental benefit. § Subd. 2.Initial net worth requirement. Beginning organizations shall maintain net worth of at least 8-1/3 percent of the sum of all expenses expected to be incurred in the 12 months following the date the certificate of authority is granted, or $1,500,000, whichever is greater. § Subd. 3. [Repealed, 1998 c 407 art 8 s 14] § Subd. 4.Reduction for reinsurance. In calculating expenses for purposes of the net worth requirement, a health maintenance organization may subtract 90 percent of the cost of premiums it pays for insurance coverage specified in section 62D.04, subdivision 1, clause (f). § Subd. 5. [Repealed, 2004 c 285 art 3 s 11] § Subd. 6. [Repealed, 2004 c 285 art 3 s 11] § Subd. 7. [Repealed, 2004 c 285 art 3 s 11]