| (a) Before obtaining a certificate of authority, an
applicant CHMO must comply with each requirement for the issuance
of a certificate of authority imposed on a limited health care service
plan under Insurance Code Chapter 843 (concerning Health Maintenance
Organizations) and Insurance Code Chapter 1271 (concerning Benefits
Provided by Health Maintenance Evidence of Coverage; Charges), this
chapter, and other applicable insurance laws and regulations of this
state.
(b) A CHMO with a certificate of authority must comply
with all the appropriate requirements that a limited health care service
plan must comply with under Insurance Code Chapters 843 and 1271,
this chapter, and other applicable insurance laws and regulations
of this state to maintain a certificate of authority. A CHMO is subject
to the same statutes and rules as a limited service HMO and considered
a limited service HMO for purposes of regulation and regulatory enforcement.
(c) Nothing in this subchapter prevents one or more
community centers from forming a nonprofit corporation under Occupations
Code §162.001 (concerning Certification by Board) to provide
services on a risk-sharing or capitated basis as permitted under Insurance
Code Chapter 844 (concerning Certification of Certain Nonprofit Health
Corporations).
(d) This subchapter does not apply to an activity exempt
from regulation under Insurance Code §§843.051 (concerning
Applicability of Insurance and Group Hospital Service Corporation
Laws), 843.053 (concerning Laws Relating to Restraint of Trade), 843.073
(concerning Certificate of Authority Requirement; Applicability to
Physicians and Providers), or 843.318 (concerning Certain Contracts
of Participating Physicians or Provider Not Prohibited).
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