31A-34-108 - Powers of and restrictions on alliances. - Utah Statutes

31A-34-108. Powers of and restrictions on alliances.
(1) An alliance may only exercise the powers necessary to:
(a) make health insurance available to its members and enrollees from multipleunaffiliated insurers through the use of coordinated actuarial models, coordinated underwriting, orcoordinated marketing methodologies; and
(b) subject to Subsection (3)(d), make available to its members other related insuranceproducts and services, including dental, vision, and life insurance.
(2) In addition to the powers granted to a nonprofit corporation in Title 16, Chapter 6a,Utah Revised Nonprofit Corporation Act, or to the powers of a trust under common law, thepowers of an alliance include:
(a) setting reasonable fees and conditions for membership, which may vary by group size,to reflect reasonable and necessary costs incurred in administering the alliance;
(b) providing or contracting for premium collection services consistent with therequirements of Title 31A, Chapter 25; or
(c) contracting with qualified independent third parties for any service necessary to carryout the powers and duties authorized or required by this chapter.
(3) Notwithstanding Subsection (1), an alliance may not:
(a) purchase health care services;
(b) assume risk for the cost or provision of health services;
(c) contract with health care providers for the provision of health care services toenrollees; or
(d) condition alliance membership on the purchase or subscription of a product or serviceother than health insurance.

Amended by Chapter 300, 2000 General Session