| (a) A health group cooperative may rescind its election
to admit eligible single-employee business members only if the:
(1) election has been effective for at least two years,
except as provided by subsection (b) of this section;
(2) health group cooperative files notice of the rescission
with the commissioner not later than the 180th day before the effective
date of the rescission; and
(3) health group cooperative provides written notice
of termination of coverage to all eligible single-employee business
members of the cooperative not later than the 180th day before the
effective date of the termination.
(b) A health group cooperative may rescind its election
to admit eligible single-employee business members before the second
anniversary of the effective date of the election by showing good
cause in a written request to TDI that includes the:
(1) description of the specific circumstance requiring
early rescission of the election, supported by any evidence of the
cooperative's undue financial or operational hardship;
(2) geographical area in which the cooperative operates;
(3) total number of lives covered through the cooperative
and the number of lives covered by enrollment of single-employer business
members that will be affected by the rescission; and
(4) a signature by an authorized officer of the cooperative.
(c) A health group cooperative that rescinds its election
under this division may choose to permit existing single-employee
business members to maintain their membership and coverage but only
if all single-employee business members are provided the same opportunity.
(d) A health group cooperative that has rescinded an
election under this division may not reelect to accept eligible single-employee
businesses to join the cooperative before the fifth anniversary of
the effective date of the rescission.
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