62D.18 REHABILITATION OR LIQUIDATION OF HEALTH MAINTENANCE
Subdivision 1. Commissioner of health; order.
The commissioner of health may apply by
verified petition to the district court of Ramsey County or the county in which the principal
office of the health maintenance organization is located for an order directing the commissioner
of health to rehabilitate or liquidate a health maintenance organization. The rehabilitation or
liquidation of a health maintenance organization shall be conducted under the supervision of the
commissioner of health under the procedures, and with the powers granted to a rehabilitator or
liquidator, in chapter 60B, except to the extent that the nature of health maintenance organizations
renders the procedures or powers clearly inappropriate and as provided in this subdivision or in
chapter 60B. A health maintenance organization shall be considered an insurance company for the
purposes of rehabilitation or liquidation as provided in subdivisions 4, 6, and 7.
Subd. 2.[Repealed, 1990 c 538 s 32
Subd. 3.[Repealed, 1990 c 538 s 32
Subd. 4. Powers of rehabilitator.
The powers of the rehabilitator include, subject to the
approval of the court the power to change premium rates, without the notice requirements of
, and the power to amend the terms of provider contracts, and of contracts with
participating entities for the provision of administrative, financial, or management services,
relating to reimbursement and termination, considering the interests of providers and other
contracting participating entities and the continued viability of the health plan.
If the court approves a contract amendment that diminishes the compensation of a provider
or of a participating entity providing administrative, financial, or management services to the
health maintenance organization, the amendment may not be effective for more than 60 days and
shall not be renewed or extended.
Subd. 5.[Repealed, 1990 c 538 s 32
Subd. 6. Special examiner.
The commissioner as rehabilitator shall make every reasonable
effort to employ a senior executive from a successful health maintenance organization to serve
as special examiner to rehabilitate the health maintenance organization, provided that the
individual does not have a conflict of interest. The special examiner shall have all the powers of
the rehabilitator granted under this section and section
Subd. 7. Examination account.
The commissioner of health shall assess against a health
maintenance organization not yet in rehabilitation or liquidation a fee sufficient to cover the costs
of a special examination. The fee must be deposited in an examination account. Money in the
account is appropriated to the commissioner of health to pay for the examinations. If the money
in the account is insufficient to pay the initial costs of examinations, the commissioner may use
other money appropriated to the commissioner, provided the other appropriation is reimbursed
from the examination account when it contains sufficient money. Money from the examination
account must be used to pay per diem salaries and expenses of special examiners, including
meals, lodging, laundry, transportation, and mileage. The salary of regular employees of the
Health Department must not be paid out of the account.
History: 1973 c 670 s 18; 1977 c 305 s 45; 1983 c 289 s 114 subd 1; 1984 c 655 art 1 s 92;
1988 c 612 s 23; 1990 c 538 s 29