[§346-59.5]  Enforcement of contracts.  (a) 
The director may monitor a health plan's performance during any contract
period.



(b)  In addition to any other administrative or
judicial remedy, the director may impose civil or administrative monetary
penalties not to exceed the maximum amount established by federal statutes and
regulations if the health plan:



(1)  Fails to provide medically necessary items and
services that are required under law or under contract;



(2)  Imposes upon beneficiaries excess premiums and
charges;



(3)  Acts to discriminate among enrollees;



(4)  Misrepresents or falsifies information;



(5)  Violates marketing guidelines; or



(6)  Violates other contract provisions and
requirements.



(c)  The director may appoint temporary
management to oversee compliance efforts if a health plan continues to engage
in violations of contract, law or rules, or if there is a substantial risk to
the health of enrollees.



(d) Pursuant to chapter 91, the director may
adopt and enforce such rules as may be necessary to carry out the purposes of
this section.



(e) The director shall notify the insurance
commissioner whenever a sanction under this section is contemplated. [L 1998, c
94, §1]