Procedure for Establishment of Health Maintenance Organizations Generally; Notice of Modification; Exemption of Item From Filing Requirements

  1. Law
  2. Georgia Code
  3. Insurance
  4. Health Maintenance Organizations
  5. Procedure for Establishment of Health Maintenance Organizations Generally; Notice of Modification; Exemption of Item From Filing Requirements

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  1. Any domestic stock, mutual, or nonprofit corporation whose charter powers include the business of a health maintenance organization may apply to the Commissioner for and obtain a certificate of authority to establish and operate a health maintenance organization in compliance with this chapter. No person shall establish or operate a health maintenance organization in this state; sell, offer to sell, or solicit offers to purchase; or receive advance or periodic consideration in conjunction with a health maintenance organization without obtaining a certificate of authority under this chapter.
  2. Each application for a certificate of authority shall be verified by an officer or authorized representative of the applicant, shall be in a form prescribed by the Commissioner, and shall set forth or be accompanied by the following:
    1. A copy of the corporation's charter and all amendments to the charter;
    2. A copy of the bylaws, rules and regulations, or similar document, if any, regulating the conduct of the internal affairs of the applicant;
    3. A list of the names, addresses, and official positions of the persons who are to be responsible for the conduct of the affairs of the applicant, including all members of the board of directors, board of trustees, executive committee, or other governing board or committee, and the principal officers of the corporation;
    4. A copy of any contract made or to be made between any providers or persons listed in paragraph (3) of this subsection and the applicant;
    5. A statement describing in detail the health maintenance organization, its health benefits plan or plans, facilities, and personnel;
    6. A copy of the form of evidence of coverage to be issued to the enrollees;
    7. A copy of the form of the group contract, if any, which is to be issued to employers, unions, trustees, or other organizations;
    8. Financial statements showing the applicant's assets, liabilities, and sources of financial support. If the applicant's financial affairs are audited by independent certified public accountants, a copy of the applicant's most recent regular certified financial statement shall be deemed to satisfy this requirement unless the Commissioner directs that additional or more recent financial information is required for the proper administration of this chapter;
    9. A description of the proposed method of marketing the plan, a financial plan which includes a three-year projection of the initial operating results anticipated, and a statement as to the sources of working capital as well as any other sources of funding;
    10. A power of attorney duly executed by such applicant, if not domiciled in this state, appointing the Commissioner, his successors in office, and duly authorized deputies as the true and lawful attorney of the applicant in and for this state upon whom all lawful process in any legal action or proceeding against the health maintenance organization on a cause of action arising in this state may be served;
    11. A statement describing the geographic area or areas to be served;
    12. A description of the complaint procedures to be utilized as required under Code Section 33-21-9;
    13. A description of the procedures and programs to be implemented to meet the quality of health care requirements in subsection (b) of Code Section 33-21-3;
    14. A description of the mechanism by which enrollees will be afforded an opportunity to participate in matters of policy and operation under subsection (b) of Code Section 33-21-6; and
    15. Such other information as the Commissioner may require.
    1. A health maintenance organization shall, unless otherwise provided for in this chapter, file a notice describing any modification of the operation set out in the information required by subsection (b) of this Code section. Such notice shall be filed with the Commissioner prior to the modification. If the Commissioner does not disapprove within 60 days of filing, such modification shall be deemed approved.
    2. The Commissioner may promulgate rules and regulations exempting from the filing requirements of paragraph (1) of subsection (b) of this Code section those items he deems unnecessary.

(Code 1933, § 56-3602, enacted by Ga. L. 1979, p. 1148, § 1; Ga. L. 1986, p. 676, §§ 2, 3; Ga. L. 1987, p. 3, § 33; Ga. L. 2000, p. 1246, § 5.)


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