HLS 12RS-574 ENGROSSED
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2012
HOUSE BILL NO. 150
BY REPRESENTATIVE RITCHIE
INSURANCE/HMO: Clarifies the minimum capital and surplus requirements for health
maintenance organizations
AN ACT1
To amend and reenact R.S. 22:254(C), relative to health maintenance organizations; to2
clarify the minimum required capital and surplus for each such entity; and to provide3
for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 22:254(C) is hereby amended and reenacted to read as follows: 6
ยง254. Protection against insolvency7
* * *8
C. Each health maintenance organization shall establish prior to the issuance9
of any certificate of authority, and shall maintain as long as it does business in10
Louisiana as a health maintenance organization, the following capital and surplus11
requirements: in the amount of three million dollars.12
(1) For each health maintenance organization which, by July 1, 1995, has not13
filed its application for a certificate of authority with the commissioner as required14
by law, a minimum of the greater of three million dollars or the amounts required by15
Subpart D of Part III of this Chapter, R.S. 22:631 et seq. The million dollar deposit16
required pursuant to Subsection A of this Section shall apply as a part of this17
minimum requirement.18 HLS 12RS-574 ENGROSSED
HB NO. 150
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(2) For each health maintenance organization which, by July 1, 1995, has1
filed its application for a certificate of authority with the commissioner as required2
by law, the minimum capital and surplus shall be:3
(i) Eight hundred thousand dollars by July 1, 1996.4
(ii) One million five hundred thousand dollars by July 1, 1997.5
(iii) Two million dollars by July 1, 1998.6
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Ritchie HB No. 150
Abstract: Clarifies the minimum required capital and surplus for health maintenance
organizations (HMO).
Present law requires each HMO to maintain, as long as it does business in this state, certain
minimum capital and surplus based on a graduated scale, ranging from $800,000 to $3
million, over a certain time period (1995-1998).
Proposed law deletes the graduated scale of minimum capital and surplus requirements
contained in present law, as such time period has elapsed, and instead clarifies that the
minimum capital and surplus required of each HMO is $3 million.
(Amends R.S. 22:254(C))