§432D-15 - Rehabilitation, liquidation, or conservation of health maintenance organizations.
[§432D-15] Rehabilitation, liquidation, or
conservation of health maintenance organizations. (a) Any rehabilitation,
liquidation, or conservation of a health maintenance organization shall be
deemed to be the rehabilitation, liquidation, or conservation of an insurance
company and shall be conducted under the supervision of the commissioner
pursuant to the law governing the rehabilitation, liquidation, or conservation
of insurance companies. The commissioner may apply for an order directing the
commissioner to rehabilitate, liquidate, or conserve a health maintenance
organization upon any one or more grounds set out in article 15 of chapter 431,
or when in the commissioner's opinion, the continued operation of the health
maintenance organization would be hazardous either to the enrollees or to the
general public. Enrollees shall have the same priority in the event of
liquidation or rehabilitation as the law provides to policyholders of an
insurer.
(b) For purpose of determining the priority of
distribution of general assets, claims of enrollees and enrollees'
beneficiaries shall have the same priority as established by article 15 of
chapter 431, for policyholders and beneficiaries of insureds of insurance
companies. If an enrollee is liable to any provider for services provided
pursuant to and covered by the health care plan, that liability shall have the
status of an enrollee claim for distribution of general assets. Any provider
who is obligated by statute or agreement to hold enrollees harmless from
liability for services provided pursuant to and covered by a health care plan
shall have a priority of distribution of the general assets immediately
following that of enrollees and enrollees' beneficiaries as described herein,
and immediately preceding the priority of distribution described in article 15
of chapter 431. [L 1995, c 179, pt of §1]