California Insurance Code

§ 10840

INS § 10840 Effective Jan 1, 1997Div. 2 · Part 2 · Ch. 9 · Art. 5

Statute text

A purchasing alliance shall do all of the following:

(a)Set reasonable fees, which may vary by employer or small employer size, in the purchasing alliance that will finance reasonable and necessary costs incurred in marketing, selling, servicing, and administering the purchasing alliance. Fees may not vary based upon the small employer or his or her enrollees and dependents’ actual or expected health status, medical utilization, claims experience, industry, occupation, or the geographic location of participating small employers within the same service region.

(b)Define, market, offer, and sell to small employers the health benefit plans purchased from participating carriers. The purchasing alliance may also incidentally offer optional ancillary benefit plans. The purchasing alliance may also define, market, and offer health benefit plans and ancillary benefit plans to employers.

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Legislative history

Added by Stats. 1996, Ch. 916, Sec. 1. Effective January 1, 1997.