Assure that all residents in the area enroll in health plans that provide the guaranteed comprehensive benefits. Where inadequate services exist, alliances may organize health providers or use financial incentives to encourage health plans to expand. Alliances operate as non-profit corporations, independent state agencies or agencies of the executive branch of the state. The board of each alliance includes an even number of consumer and employer representatives but may not include health providers and others who profit from the industry. Each alliance also forms an advisory board composed of health care professionals and providers who practice in its health plans.
Alliances negotiate rates for premiums with each health plan and collect premium contributions.
Alliances pay health plans a fixed premium for each individual or family that enrolls, adjusting the total payments to plans to reflect the health status of that plan's participants. Corporate Alliances Firms employing more than 5000 workers, Taft-Hartley plans and rural cooperatives are eligible to organize corporate alliances, although they may also choose to purchase coverage through regional alliances. Corporate alliances resemble the operation of large employers' benefit departments, arranging premiums and the delivery of services. Corporate alliances provide health benefits to their employees either through a self-funded employee benefit plan or through contracts with health plans. They operate under the same rules as regional alliances except that the population served is limited to company employees and their dependents.