Chapter 85

COL 04130910GCA HEALTH AND SAFETY CH.85GUAM MEMORIAL HEALTH PLAN 1CHAPTER 85 GUAM MEMORI AL HEAL TH PLAN Article 1. Management of the Plan. Article 2. Termination of Government Service. ARTICLE 1 MANAGEMENT OF THE PLAN § 85101. Definitions. § 85102. Establishment. § 85103. Duties. § 85104. Powers. § 85105. Board of Trust ees. § 85106. Same. § 85107. Director . § 85108. Personnel. § 85109. Fiscal Authority Accounting, Expenditures. § 85110. Managing Firm Prohibited. § 85111. Exemption from Taxation. § 85112. Contracts and Purchases. § 85113. Transfers. § 85114. Termination. NOTE: Added by P .L. 16 -98, effective September 1, 1982. § 85101. Definitions . As used in this Chapter: (a) Board means the Board of Trustees of the Guam Memorial Health Plan; (b) Corporation means the Guam Memorial Health Plan; and (c) Director means the Director of the Guam Memo rial Health Plan. SOURCE: GC§ 49020. § 85102. Establishment. In order to provide medical services and assistance to those persons on Guam who require assistance, there is created a public corporation to be known as the Guam Me morial Health Plan. SOURCE: GC§ 49021.

der to provide medical services and assistance to those persons on Guam who require assistance, there is created a public corporation to be known as the Guam Me morial Health Plan. SOURCE: GC§ 49021. COL 04130910GCA HEALTH AND SAFETY CH.85GUAM MEMORIAL HEALTH PLAN 2§ 85103. Duties. It shall be the duty of the Corporation to operate a self -sustaining health maintenance organization which shall offer health services at the lowest possible premiums to people of the territory of Guam. SOURCE: GC§ 49022. § 85104. Powers. The Corporation shall have all the powers necessary and convenient to carry out and perform the purposes and provisions of this Chapter , including the following, in addition to other powers granted in this Chapt er, and may: (1) sue and be sued; (2) have a seal and modify it; (3) enter into and execute contracts and instru ments of every kind and nature, necessary or conve nient to the exercise of its powers and functions; (4) make and from time to time modify and repeal articles of incorporation, bylaws, rules and regulations, not inconsistent with this Chapter, providing for the internal organization and manage ment of the Corpora tion, for the administration of

al articles of incorporation, bylaws, rules and regulations, not inconsistent with this Chapter, providing for the internal organization and manage ment of the Corpora tion, for the administration of its affairs and operations, and for carrying into e ffect the powers and purposes of the Cor poration; (5) borrow money from public and private sources which shall not be considered public indebtedness of the government of Guam and give such security , therefore, as may be required; (6) apply for and accept advances, loans, grants, contributions, gifts, donations, appropriations of funds and any other form of financial assistance from any sources, public or private, for the purposes of this Chapter, and enter into and carry out contracts in connection therewi th; and (7) acquire any personal or real pro perty, bylease, option, purchase, gift, grant, donation or bequest. SOURCE: GC§ 49023. § 85105. Board of T rustees. All powers vested in the Corporation, except as otherwise provided in this Chapter , shall b e exercised by the Board. SOURCE: GC§ 49024.COL 04130910GCA HEALTH AND SAFETY CH.85GUAM MEMORIAL HEALTH PLAN 3§ 85106. Same.

in the Corporation, except as otherwise provided in this Chapter , shall b e exercised by the Board. SOURCE: GC§ 49024.COL 04130910GCA HEALTH AND SAFETY CH.85GUAM MEMORIAL HEALTH PLAN 3§ 85106. Same. (a) The Board of Trustees shall consist of seven (7) members who shall be appointed by the Governor with the advice and consent of the Legislature. The quorum of the Board shall consist of fiv e (5) trustees. Action by the Board shall require the affirmative vote of five (5) trustees. Vacancies on the Board shall be filled for the unexpired term of the retiring member . The Board shall elect a chairperson, vice chairperson and a secre - tary/treasu rer, among its members. (b) The Board shall meet within ten (10) days after five (5) members take office for the purpose of adopting articles of incorporation and bylaws. The Corporation shall be a non -stock public corporation. (c) Trustees shall not bemembers of the Guam Memo rial Hospital Authority , employees of the Corpora tion, providers of services or supplies to the Corporation, employees or shareholders of any health maintenance organization or health insurance business on Guam. SOURCE: GC§49025. § 85107. Director .

ion, providers of services or supplies to the Corporation, employees or shareholders of any health maintenance organization or health insurance business on Guam. SOURCE: GC§49025. § 85107. Director . The Board shall appoint a Director. The Director shall be a member of the unclassified service of the government of Guam. The Direc tor shall have responsibi lity to carry out the purposes and duties of the Corpora tion in accord ance with the direction of the Board. Payment for services to the Director shall be on a salary basis as established by the Board. SOURCE: GC§ 49026. § 85108. Personnel. The Director may appoint such other per sonnel and fix their duties, under and in a ccordance with the personnel and compensation laws of the government of Guam, for the purposes of the Corporation. SOURCE: GC§ 49027. § 85109. Fiscal Authority Accounting, Expenditures. (a) There is established a fund to be known as the AGuam Memorial Health Plan Fund, @which shall be maintained separate and apart from other funds of the Government and inde pendent records and accounts shall be maintained in connection therewith.

he AGuam Memorial Health Plan Fund, @which shall be maintained separate and apart from other funds of the Government and inde pendent records and accounts shall be maintained in connection therewith. Every quarter , the financial statement of the Fund shall be transmitted to the Speaker of the Guam Legislature. COL 04130910GCA HEALTH AND SAFETY CH.85GUAM MEMORIAL HEALTH PLAN 4(b) All money received by the Corporation, from whatever source derived, shall be deposited in the Guam Memorial Health Plan Fund in a financial institution licensed to do business on Guam, insured by Federal Deposi tors Insurance Corporation or Federal Savings and Loans Insurance Corporation. (c) All expenditures from this Fund shall be restricted to expenditures directly related to the operation of the Corporation. (d) Administrative expenses of the Cor porati on shall not exceed 13.5 per cent (13.5%) of the total gross premi ums for each year . Administrative expenses shall include all expenses other than provider costs. (e) The Board shall adopt and maintain a uniform system of accounting. Every year the Boa rd shall obtain a certified audit of the accounts.

nses shall include all expenses other than provider costs. (e) The Board shall adopt and maintain a uniform system of accounting. Every year the Boa rd shall obtain a certified audit of the accounts. The audit shall be submit ted to the Governor and the Legislature. If the Territorial Auditor or the Federal Comptroller performs a thorough audit of the Corporation for the same period, the Board need not obtain a certified audit. (f) Arevolving account shall be established with a portion of the Fund and it shall be known as the ACatas trophic Contingencies Account.@At no time shall the money in the account exceed One Million Five Hundred Thousand D ollars ($1,500,000). Expenditures from the account shall be used only to provide authorized subscri ber benefits whose cost has not otherwise been provided for and the account shall not in any way be used for the administra tion of the plan. SOURCE: GC§ 49028. § 85110. Managing Firm Prohibited . The Corporation shall not retain any management firm for the purpose of managing the Corporation. SOURCE: GC§ 49029. § 85111. Exemption from T axation.

GC§ 49028. § 85110. Managing Firm Prohibited . The Corporation shall not retain any management firm for the purpose of managing the Corporation. SOURCE: GC§ 49029. § 85111. Exemption from T axation. The Corporation and all property acquired by or for the Cor poration and all revenues and income earned by the Corporation are exempt from the taxation by the Territory for those taxes that are imposed by the Territory , including but not limited to the territorial income tax and the business privilege tax. SOURCE: GC § 49030. Amended by P.L. 29 -002:VI:28 (May 18, 2007) the name, Gross Receipts Tax ,changed to Business Privilege Tax.COL 04130910GCA HEALTH AND SAFETY CH.85GUAM MEMORIAL HEALTH PLAN 5§ 85112. Contracts and Purchases. (a) The Board shall prescribe rules and regulations for purchasing and procure ment by the Corpor ation, consistent with the provisions of the Administrative Adjudication Act. SOURCE: GC§ 49031. § 85113. T ransfers. There is transferred to the corpora tion all items of property and personnel now assigned to the Guam Memorial Health Plan by the Guam Memorial Hospital Authori ty.

E: GC§ 49031. § 85113. T ransfers. There is transferred to the corpora tion all items of property and personnel now assigned to the Guam Memorial Health Plan by the Guam Memorial Hospital Authori ty. On the first day of the month following the incorpor ation of the Corporation, all working capital, cash, accounts payable and receivable, all financial books, records and all other rights, obligations, assets, liabi lities, contractual agreements, chooses in action and privileges pertaining to the properties and operation of existing Guam Memorial Health Plan shall be transferred to the Corporation. SOURCE: GC§ 49032. § 85114. T ermination . The Corporation shall cease to ex ist twenty -four (24) months after the effective date of this Act. The Board of Trustees shall adopt a plan for selling the Corporation to a coope rative association of subscribers or to any other qualified purchasers. SOURCE: GC§ 49033. ---------- ARTICLE 2 TERMI NATION OF GOVERNMENT SERVICE § 85201. Definitions. § 85202. Notice. § 85203. Notice: When Due. § 85204. Notice: Agencies' Responsibility . § 85201. Definitions.

GC§ 49033. ---------- ARTICLE 2 TERMI NATION OF GOVERNMENT SERVICE § 85201. Definitions. § 85202. Notice. § 85203. Notice: When Due. § 85204. Notice: Agencies' Responsibility . § 85201. Definitions. As used in this Chapter:COL 04130910GCA HEALTH AND SAFETY CH.85GUAM MEMORIAL HEALTH PLAN 6(a) Government Agency shall mean any branch, agency departmen t or division of the Government of Guam including any autonomous agency or public corporation. (b) Employee shall mean any officer, director or employee of a government agency . (c) Insured Employee shall mean any employee who is insured or whose dependents are insured for health care and/or medical benefits by Guam Memori al Health Plan under any policy of insurance which conditions such insurance in any respect upon the continued employment of the employee with a govern ment agency . SOURCE: GC49040 as add ed by P .L. 17 -39. § 85202. Notice. Any government agency which em ploys one or more insured employees shall give notice to Guam Memorial Health Plan of the termination of the employment with the government agency of any insured employee or of the electio n of any insured employee to terminate health insurance coverage with Guam

morial Health Plan of the termination of the employment with the government agency of any insured employee or of the electio n of any insured employee to terminate health insurance coverage with Guam Memorial Health Plan. SOURCE: GC§ 49041 as added by P .L. 17 -39. § 85203. Notice: When Due. The notice provided by the preceding section shall be given in advance of the termina tion of the employment of such employee, or of the date the employee's cancellation of his insurance is to be effective, and such notice shall be given as far in advance as is reasonably practicable, but in no event shall such notice be given later than the actual date of termination of employment, or of such coverage. SOURCE: GC§ 49043 as added by P .L. 17 -39. § 85204. Notice: Agencies' Responsibility . Anygovern ment agency required to give notice to Guam Memorial Health Plan pursuant to the terms of this chapter shall in consideration of the extension of insurance b y Guam Memorial Health Plan to the insured employees of such agency , bedeemed directly bound in contract to Guam Memorial Plan for the amount of any premiums for insurance coverage during the p eriod af ter the date such employee terminated

employees of such agency , bedeemed directly bound in contract to Guam Memorial Plan for the amount of any premiums for insurance coverage during the p eriod af ter the date such employee terminated employment with the government agency , or terminated his insurance with Guam Memorial Health Plan, and before notice of such termi nation is given b y the government agency to Guam Memorial COL 04130910GCA HEALTH AND SAFETY CH.85GUAM MEMORIAL HEALTH PLAN 7Health Plan, in the e vent notice is not given by the government agency in a timely manner as provided by this Act. SOURCE: GC§ 49044 as added by P .L. 17 -39. ----------COL 041309