[§393-12]  Choice of plan type and ofcontractor.  (a)  Every employer required to provide coverage for theemployer's employees by a prepaid group health care plan under this chaptershall elect whether coverage shall be provided by:

(1)  A plan which obligates the prepaid health careplan contractor to furnish the required health care benefits; or

(2)  A plan which obligates the prepaid health careplan contractor to defray or reimburse the expenses of health care.

The employer's election is binding for one year.

(b)  Whether the employer elects a plan typedescribed in subsection (a)(1) or in subsection (a)(2), the employer may electthe particular contractor but the employee shall not be obligated to contributea greater amount to the premium than the employee would have to contribute hadthe employer elected coverage with the contractor providing the prevailingcoverage of the respective type in the State.

Subject to the provision of section 393-20, theemployer shall provide coverage with the prepaid health care plan contractorselected pursuant to this subsection for all the employer's employees in theState electing this type of coverage who are covered by the provisions of thischapter, except for employees covered by the health care provisions of anapplicable collective bargaining agreement as provided in section 393-19(b)first sentence. [L 1974, c 210, pt of §1; gen ch 1985]