California Health and Safety Code

§ 1375.4

HSC § 1375.4 Effective Jan 1, 2010Div. 2 · Ch. 2.2 · Art. 6

Statute text

(a)Every contract between a health care service plan and a risk-bearing organization that is issued, amended, renewed, or delivered in this state on or after July 1, 2000, shall include provisions concerning the following, as to the risk-bearing organization’s administrative and financial capacity, which shall be effective as of January 1, 2001:

(1)A requirement that the risk-bearing organization furnish financial information to the health care service plan or the plan’s designated agent and meet any other financial requirements that assist the health care service plan in maintaining the financial viability of its arrangements for the provision of health care services in a manner that does not adversely affect the integrity of the contract negotiation process.

(2)A requirement that the health care service plan disclose information to the risk-bearing organization that enables the risk-bearing organization to be informed regarding the financial risk assumed under the contract.

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Legislative history

Amended by Stats. 2009, Ch. 298, Sec. 6. (AB 1540) Effective January 1, 2010.