§ 27-13-12-3 — Maintenance of minimum net worth

Indiana § 27-13-12-3

• Jurisdiction: Indiana
• Title 27: INSURANCE
• Art. 13: HEALTH MAINTENANCE ORGANIZATIONS
• Ch. 12: Protection Against Insolvency; Net Worth

Text

Except as provided in sections 4 and 5 of this
chapter, a health maintenance organization shall maintain a minimum
net worth equal to the greater of:
(1) one million dollars ($1,000,000);
(2) based on annual premium revenues as reported on the most
recent annual financial statement filed with the commissioner, the
total of two percent (2%) of annual premium revenues on the first
one hundred fifty million dollars ($150,000,000) of premium and
one percent (1%) of annual premium on the premium in excess of
one hundred fifty million dollars ($150,000,000);
(3) an amount equal to the sum of three (3) months of uncovered
health care expenditures, as reported on the most recent financial
statement of the health maintenance organization filed with the
commissioner under IC 27-13-8-2(a)(1); or
(4) an amount equal to the sum of:
(A) eight percent (8%) of annual health care expenditures
except those paid on a capitated basis or managed hospital
payment basis as reported on the most recent financial
statement filed with the commissioner; and
(B) four percent (4%) of annual hospital expenditures paid on
a managed hospital payment basis as reported on the most
recent financial statement filed with the commissioner.

Legislative History

As added by P.L.26-1994, SEC.25.