California Health and Safety Code

§ 1377

HSC § 1377 Effective Jan 1, 2010Div. 2 · Ch. 2.2 · Art. 6

Statute text

(a)Every plan which reimburses providers of health care services that do not contract in writing with the plan to provide health care services, or which reimburses its subscribers or enrollees for costs incurred in having received health care services from providers that do not contract in writing with the plan, in an amount which exceeds 10 percent of its total costs for health care services for the immediately preceding six months, shall comply with the requirements set forth in either paragraph (1) or (2):

(1)(A) Place with the director, or with any organization or trustee acceptable to the director through which a custodial or controlled account is maintained, a noncontracting provider insolvency deposit consisting of cash or securities that are acceptable to the director that at all times have a fair market value in an amount at least equal to 120 percent of the sum of the following:

(i)All claims for noncontracting provider services received for reimbursement, but not yet processed.

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Legislative history

Amended by Stats. 2009, Ch. 298, Sec. 8. (AB 1540) Effective January 1, 2010.