Sec. 21.86.030. Powers of a health maintenance organization.

371 words·~2 min read·/ak/title-21/chapter-86/21-86-030

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)A health maintenance organization may

(1)purchase, lease, construct, renovate, operate, or maintain hospitals, other health care facilities, their ancillary equipment, and property reasonably required for its principal office or for purposes necessary in the transaction of the business of the organization;

(2)make loans to a medical group under contract with it in furtherance of its program, or make loans to a corporation or corporations under its control for the purpose of acquiring or constructing medical facilities and hospitals or in furtherance of a program providing health care services to enrollees;

(3)furnish health care services through providers that are under contract with or employed by the health maintenance organization;

(4)contract with a person for the performance, on the organization's behalf, of certain functions such as marketing, enrollment, and administration;

(5)contract with an insurance company licensed in this state, or with a hospital or medical service corporation authorized to do business in this state, for the provision of insurance, indemnity, or reimbursement against the cost of health care services provided by the health maintenance organization;

(6)offer other health care services, in addition to basic health care services.

(b)A health maintenance organization shall file a notice and adequate supporting information with the director before the exercise of a power granted in (a)(1), (2), or

(4)of this section. The director may disapprove the exercise of a power only if, in the director's opinion, it would substantially and adversely affect the financial soundness of the health maintenance organization and endanger its ability to meet its obligations. If the director does not disapprove the exercise of power within 30 days after the filing of the notice, it is considered approved. The director may adopt regulations exempting from the filing requirement of this section those activities having a minimal effect on the health maintenance organization.

(c)Nothing in this section relieves a health maintenance organization that wishes to exercise the power described in (a)(1) of this section from the requirements of

(1)AS 18.07 , regarding obtaining a certificate of need;

(2)AS 47.32 , regarding regulation of hospitals; and

(3)other statutes applicable to hospitals or other health care facilities.