| (a) A delegating HMO must:
(1) identify all responsibilities relating to the function
being delegated;
(2) create an agreement that enables the HMO and department
to monitor both the delegated entity's financial solvency and performance
or subsequent delegation of all delegated functions; and
(3) retain ultimate responsibility for ensuring that
all delegated functions are performed in compliance with applicable
statutes and rules.
(b) This subchapter applies to all contracts entered
into or renewed on and after the effective date of these rules.
(c) This subchapter does not apply to a group model
HMO, as defined in Insurance Code §843.111 (concerning Group
Model Health Maintenance Organizations).
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