38.2-4317.1 - Insolvency deposit assessment.
§ 38.2-4317.1. Insolvency deposit assessment.
In the event of an insolvency of a health maintenance organization occurringafter July 1, 1989, the Commission may, (i) in the absence of an assumptionunder subsection C of § 38.2-4317 that is satisfactory to the Commission andthat occurred within sixty days after entry of an order of impairment orinsolvency and (ii) after notice and hearing, levy an assessment on premiumsdue by licensed health maintenance organizations on contracts issued orrenewed in this Commonwealth after the date of such assessment; provided,that such assessments for all health maintenance organization insolvencies inany calendar year shall not exceed two percent of the premiums subject tosuch assessments. Such assessments shall be paid quarterly to the Commission,and upon receipt by the Commission shall be paid over into the depositaccount of the insolvent health maintenance organization held pursuant tosubsection A of § 38.2-4310 for the benefit of enrollees for use anddisbursement in accordance with this section, § 38.2-4317, and applicableCommission regulations. No participating provider, as defined in § 38.2-4300,may, either directly or indirectly, receive reimbursement from any suchassessments. A receiver of such an insolvent health maintenance organizationappointed pursuant to § 38.2-4317 may borrow in anticipation of collection ofsuch assessments to meet obligations under a deposit account. Any assessmentslevied on account of a health maintenance organization insolvency in excessof obligations to enrollees shall be ratably returned to the healthmaintenance organizations paying such assessments.
(1989, c. 216; 1990, c. 224; 2000, c. 503.)