2025 Session
Last amended: 1994 session
§ 62N.32 — Deposit Requirement
Plain-Language Summary
Community networks must make the same financial deposit required of health maintenance organizations under section 62D.041. This deposit counts toward the network's required net worth and as an admitted asset. The deposit can only be reduced through a guaranteeing organization, not through other methods available for reducing net worth.
62N.32 DEPOSIT REQUIREMENT.
A community network must satisfy the deposit requirement provided in section 62D.041. The deposit counts as an admitted asset and as part of the required net worth. The deposit requirement cannot be reduced by the alternative means that may be used to reduce the net worth requirement, other than through the use of a guaranteeing organization.
History:
History: History:
1994 c 625 art 1 s 12
Practical Notes
The deposit requirement provides an extra layer of financial protection for enrollees. Unlike the net worth requirement, the deposit cannot be reduced by having accredited capitated providers. Only a guaranteeing organization arrangement can help satisfy this requirement.