40-3234. Health maintenance organization; financial condition; hearing; commissioner's powers. - Kansas Statutes

40-3234

Chapter 40.--INSURANCE Article 32.--HEALTH MAINTENANCE ORGANIZATIONS AND MEDICARE PROVIDER ORGANIZATIONS

      40-3234.   Health maintenance organization; financialcondition; hearing; commissioner's powers.(a) Whenever the commissioner determines that the financialcondition of a health maintenance organization is such that its continuedoperation might be hazardous to its enrollees, creditors or the generalpublic, or that such health maintenance organization has violated anyprovisions of this act, the commissioner, after notice and hearing, may ordersuch health maintenance organization to take action reasonably necessary torectify the condition or violation. Such action may include, but not limited toone or more of the following:

      (1)   Reduce the total amount of present and potential liability for benefitsby reinsurance or other method acceptable to the commissioner;

      (2)   reduce the volume of any new business being accepted;

      (3)   reduce expenses by specified methods acceptable to the commissioner;

      (4)   suspend or limit the writing of any new business for a period of time;

      (5)   increase the health maintenance organization's capital and surplus bycontribution; or

      (6)   take such other steps the commissioner may deem appropriate under thecircumstances.

      (b)   The commissioner may adopt rules and regulations which set uniformstandards and criteria for early warning that the continued operation of anyhealth maintenance organization might be hazardous to its enrollees, creditorsor the general public and set standards for evaluating the financial conditionof any health maintenance organization.

      History:   L. 2000, ch. 147, § 35; July 1.