62D.042 INITIAL NET WORTH REQUIREMENT. Subdivision 1. Definition. For purposes of this section, if a health maintenance organization offers supplemental benefits as described in section 62D.05, subdivision 6, 'expenses' does not include any expenses attributable to the supplemental benefit. Subd. 2. Initial net worth requirement. Beginning organizations shall maintain net worth of at least 8-1/3 percent of the sum of all expenses expected to be incurred in the 12 months following the date the certificate of authority is granted, or $1,500,000, whichever is greater. Subd. 3. [Repealed, 1998 c 407 art 8 s 14] Subd. 4. Reduction for reinsurance. In calculating expenses for purposes of the net worth requirement, a health maintenance organization may subtract 90 percent of the cost of premiums it pays for insurance coverage specified in section 62D.04, subdivision 1, clause (f). Subd. 5. [Repealed, 2004 c 285 art 3 s 11] Subd. 6. [Repealed, 2004 c 285 art 3 s 11] Subd. 7. [Repealed, 2004 c 285 art 3 s 11] History: 1988 c 612 s 14; 1989 c 282 art 2 s 5; 1993 c 345 art 2 s 1; 1995 c 234 art 7 s 7; 1997 c 205 s 5; 1998 c 407 art 8 s 2; 2004 c 285 art 3 s 5,6,10
Minnesota Legal Code