354.080. Reserves required, how computed. - Missouri Statutes

Reserves required, how computed.

354.080. The corporation shall maintain at all timesreserves adequate to provide the hospital, medical-surgical andother health services made available to its members andbeneficiaries and to meet all its costs and expenses. Thereserves shall not be less than an amount equal to two months ofbenefit payments and administrative expenses, based on an averageof the preceding twelve months, or if the reserves are not equalto such average, they must have been increased during thepreceding twelve months by an amount equal to one percent of thegross dues income during such period. The determination ofminimum reserves hereunder shall be subject, as to amountspayable to participating providers of the health services, to anyright of the corporation to prorate the amounts under the termsof its health service contracts with providers. The director maydecrease or suspend the requirements of this section if he findsthat such action would be in the best interest of the members ofthe corporation.

(L. 1973 S.B. 3 § 15)