| (a) A health group cooperative may elect to treat each
member as a separate employer for purposes of rating small and large
employer health benefit plans subject to the rating requirements Insurance
Code Chapter 843 (concerning Health Maintenance Organizations), as
applicable.
(b) An existing health group cooperative must file
its election with TDI not later than the 90th day before the date
on which the election is to become effective. The election filing
must include:
(1) the election date;
(2) the effective date of the election; and
(3) a signature by an authorized officer of the cooperative.
(c) When applicable, a health group cooperative must
provide all members written notice at least 90 days before the effective
date of the election. The notice must include statements:
(1) that the cooperative is electing to treat each
member as a separate employer for the purpose of rating small and
large employer health benefit plans; and
(2) specifying each employer's applicable premium rate
as of the date the plan is renewed.
(d) When a prospective member applies to join a health
group cooperative, the cooperative must provide written notice to
the applicant that the cooperative has elected to treat each member
as a separate employer for the purpose of rating small and large employer
health benefit plans.
(e) Subject to the notice requirements in subsection
(c) of this section, an election under this section is effective on
the earliest date after the election when the plan is next issued
or renewed. The election may not become effective before full compliance
with this section's requirements. Once effective, the election remains
in effect for not less than 12 months after the effective date.
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