§ 10-16-412 — Statutory deposit

Colorado § 10-16-412

• Jurisdiction: Colorado
• Title 10: Insurance
• Art.: Health-care Coverage

Text

(1) Unless otherwise provided in subsections
(2) and (3) of this section, each health maintenance organization shall furnish cash
or securities acceptable to the commissioner to be held by the commissioner under
joint control in the same manner as prescribed in sections 10-3-206, 10-3-210, and
10-3-211. The primary purpose of this deposit shall be to protect the interests of the
enrollees and to assure continuation of health-care services to enrollees of a health
maintenance organization and to cover reasonable administration costs attributed
to rehabilitation, liquidation, or conservation under section 10-16-418.

(2) (a) Every health maintenance organization shall have an initial deposit of
three hundred thousand dollars.

(b) (Deleted by amendment, L. 99, p. 83, � 3, effective July 1, 1999.)

(3) Health maintenance organizations shall establish and maintain the
following minimum deposits:

(a) The following schedule, based upon enrollment levels achieved on
December 31 of the preceding year:

(I) to (III) (Deleted by amendment, L. 99, p. 83, � 3, effective July 1, 1999.)

(IV) $300,000: Enrollment of less than 60,000;

(V) $350,000: Enrollment of 60,000 but less than 100,000;

(VI) $400,000: Enrollment of 100,000 or more.

(b) The statutory deposit shall at all times equal or exceed twenty-five
percent of the health maintenance organization's uncovered expenditures for the
previous calendar year. At such time as the deposit is less than twenty-five percent
of the health maintenance organization's uncovered expenditures for the previous
calendar year, additional deposits will be required to maintain this level. The
maximum deposit required, however, shall not exceed one million dollars.

(4) (a) If the initial application of this section would create undue financial
risks to the enrollees of a health maintenance organization, such health
maintenance organization may, within thirty days after July 1, 1999, file with the
commissioner a request to phase in the requirements of this section over a period
not to exceed three years or another time period as approved by the commissioner.

(b) Any request made pursuant to paragraph (a) of this subsection (4) shall
include a complete analysis, in a form prescribed by the commissioner, of the
impact upon the health maintenance organization making the request, that is
expected to result from application of this section and, if a phase-in is requested, a
description of the health maintenance organization's plan for the phase-in period.
The commissioner shall not deny a request for a phase-in except upon notice and an
opportunity for a hearing as provided in section 24-4-105, C.R.S.

(c) Any request for a hearing made pursuant to paragraph (b) of this
subsection (4) shall include a description of the basis upon which relief is sought.
Upon receipt of such a request, the commissioner shall, with regard to the health
maintenance organization making the request, postpone the effective date of the
section pending the conclusion of the hearing and the taking of final agency action
thereon. The hearing shall commence within sixty days after the commissioner
receives the request and shall be conducted in accordance with section 24-4-105,
C.R.S.

Legislative History

Source: L. 92: Entire article R&RE, p. 1704, � 1, effective July 1. L. 99: (2) and (3) amended and (4) added, p. 83, � 3, effective July 1. L. 2019: (3)(a)(IV) amended, (HB 19-1291), ch. 188, p. 2094, � 5, effective August 2.