§ 22:2181 — Establishment of the Louisiana State University Health Sciences Center Health

§2181. Establishment of the Louisiana State University Health Sciences Center Health
Maintenance Organization
A. The Board of Supervisors of Louisiana State University and Agricultural and
Mechanical College may create a health maintenance organization, to be called the Louisiana
State University Health Sciences Center Health Maintenance Organization, which shall
include all hospitals, clinics, and such medical service provider organizations as shall be
established by or under the direct control of the Louisiana State University Health Sciences
Center.
B. Subject to the approval of the commissioner of insurance, the chancellor of the
Louisiana State University Health Sciences Center may promulgate rules and regulations, in
accordance with the procedures provided in R.S. 17:1519.2(D), to create the Louisiana State
University Health Sciences Center Health Maintenance Organization and to institute some
collection of payment from the enrollees of the Louisiana State University Health Sciences
Center Health Maintenance Organization. Such rules and regulations shall provide for a
board of the organization which represents both patients and health care professionals. Such
rules and regulations shall specify the organizational features of the organization which shall,
except for minimum financial requirements and the requirements for incorporation, comply
with the provisions of Subpart I of Part I of Chapter 2 of this Title, R.S. 22:241 et seq. The
minimum financial requirements and the requirements for incorporation provided in such
Subpart I for health maintenance organizations, are hereby waived for the organization
created as provided in this Section.
C. The rules and regulations for which provision is made in Subsection B of this
Section shall further provide for the organization membership by enrollees in the Louisiana
State University Health Sciences Center Health Maintenance Organization.
D. All health care providers on staff at any hospital as described in this Section shall
be entitled to participate as providers in this health maintenance organization.
E. The rates charged for services by the Louisiana State University Health Sciences
Center Health Maintenance Organization shall be based on actuarially derived costs of
providing care to the same population as certified by the Louisiana Department of Health.
F. The Louisiana State University Health Sciences Center Health Maintenance
Organization shall be limited to persons eligible for Medicaid or eligible for enrollment in
a managed care plan pursuant to the state Medicaid plan and pursuant to Title XIX
(Medicaid) of the Social Security Act or a successor to the Medicaid program.
G. The Louisiana State University Health Sciences Center Health Maintenance
Organization shall enter into a contract with any willing provider licensed by the Louisiana
State Board of Medical Examiners or the Louisiana State Board of Dental Examiners to
provide primary care services delivered in an outpatient setting including medical and
surgical services. Such providers shall satisfy the standards that are established as part of the
approved managed care plan relating to quality, utilization, and accessibility of services.
H. All Medicaid managed care plans implemented as part of this Section shall be
limited to programs implemented by the Louisiana Department of Health in accordance with
state law.
I. All Medicaid managed care plans implemented as part of this Section shall be
subject to approval by the commissioner of insurance and legislative approval as set forth in
R.S. 17:1519.2(D).
J. The rules and regulations shall provide that persons eligible for enrollment shall
have the freedom to choose among all health maintenance organizations providing services
to such persons, shall insure that such persons are informed of their right to choose, and shall
provide a process through which persons who fail to make a choice are assigned to one of
the health maintenance organizations authorized and eligible to provide services to such
persons.

Legislative History

Acts 1997, No. 3, §2, eff. July 1, 1997; Acts 1999, No. 802, §2, eff. July 2, 1999; Redesignated from R.S. 22:3021 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2012, No. 271, §1.