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

(b)  In addition to any other administrative orjudicial remedy, the director may impose civil or administrative monetarypenalties not to exceed the maximum amount established by federal statutes andregulations if the health plan:

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

(2)  Imposes upon beneficiaries excess premiums andcharges;

(3)  Acts to discriminate among enrollees;

(4)  Misrepresents or falsifies information;

(5)  Violates marketing guidelines; or

(6)  Violates other contract provisions andrequirements.

(c)  The director may appoint temporarymanagement to oversee compliance efforts if a health plan continues to engagein violations of contract, law or rules, or if there is a substantial risk tothe health of enrollees.

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

(e) The director shall notify the insurancecommissioner whenever a sanction under this section is contemplated. [L 1998, c94, §1]