AI-assisted research summary: Health maintenance organizations have several listed powers, but must file notice with the superintendent before exercising certain powers that may affect financial soundness.
59A-46-5. Powers of health maintenance organizations. A. The powers of a health maintenance organization include, but are not limited to, the following: (1) the purchase, lease, construction, renovation, operation or maintenance of hospitals, medical facilities, or both, and their ancillary equipment, and such property as may reasonably be required for its principal office or for such purposes as may be necessary in the transaction of the business of the organization; (2) transactions between or among affiliated entities, including loans and the transfer of responsibility under all contracts, including without limitation provider and subscriber contracts between or among affiliates or between the health maintenance organization and its parent; (3) the furnishing of health care services through providers, provider associations or agents for providers that are under contract with or employed by the health maintenance organization; (4) the contracting with any person for the performance on its behalf of certain functions such as marketing, enrollment and administration; (5) the contracting with an authorized insurer in this state for the provision of insurance, indemnity or reimbursement against the cost of health care services provided by the health maintenance organization; (6) the offering of other health care services, in addition to basic health care services; and (7) the joint marketing of products with an insurer authorized to do business in this state as long as the company that is offering each product is clearly identified. B. A health maintenance organization shall file notice, with adequate supporting information, with the superintendent prior to the exercise of any power granted in Paragraph (1), (2) or (4) of Subsection A of this section that may affect the financial soundness of the health maintenance organization. The superintendent shall disapprove such exercise of power only if in his opinion it would substantially and adversely affect the financial soundness of the health maintenance organization and endanger its ability to meet its obligations. If the superintendent does not disapprove within thirty days of the filing, it shall be deemed approved, but the superintendent may in his sole discretion postpone the action for an additional thirty days as necessary for proper consideration of the effects of the proposed action. C. The superintendent may adopt rules and regulations exempting from the filing requirement of Subsection B of this section those activities having a de minimis effect. History: 1978 Comp., § 59A-46-5, enacted by Laws 1993, ch. 266, § 5.