38.2-4310.1 - Deposits. - Virginia Statutes

§ 38.2-4310.1. Deposits.

A. A health maintenance organization shall make its initial deposit prior tolicensure in an amount not less than $300,000. The Commission shall review ahealth maintenance organization's deposit requirement at least once each yearand may require an additional deposit in an amount equal to the greater of(i) the sum of all uncovered expenses for the most recent three monthsreported in accordance with § 38.2-4307.1 B or (ii) the value of liabilitiesrepresenting uncovered health care expenses.

B. The Commission may reduce or waive, and also may direct the StateTreasurer to return, any or all of a deposit requirement whenever theCommission, in its discretion, is satisfied that the assets of the healthmaintenance organization or its contracts with insurers, health servicesplans, governments, or other organizations are sufficient to assure theperformance of its obligations to enrollees.

C. A health maintenance organization that has experienced an operating profitfor the two most recent years may request that its deposit requirement bereduced. "Operating profit" shall be determined by reference to the annualstatements filed by the health maintenance organization and shall mean theexcess of total revenue, excluding net investment income, over total expenses.

(2000, c. 503.)