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



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



(2)  A plan which obligates the prepaid health care
plan 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 type
described in subsection (a)(1) or in subsection (a)(2), the employer may elect
the particular contractor but the employee shall not be obligated to contribute
a greater amount to the premium than the employee would have to contribute had
the employer elected coverage with the contractor providing the prevailing
coverage of the respective type in the State.



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