The Division of Taxation reflects unknown costs due to the inability to determine the number of organizations that would be subject to this legislation and whether existing staff could handle the increased workload. Oversight assumes that this proposal can be implemented with existing resources by the Division of Information Systems but unknown costs will be incurred by the Division of Taxation. Any nonprofit health care service plan transferring a substantial amount of its assets to a for-profit business shall obtain approval from the Director of the Department of Insurance before the restructuring. Before gaining approval, the health plan must submit a report to the Director summarizing its charitable activities, its procedures for avoiding conflicts, and its future charitable activities. Every applicant for restructuring shall submit for approval a public benefit program identifying activities to meet its nonprofit public benefit obligations.
Material modifications are also subject to approval.
The Director may seek public review and comment before a final determination. The conversion may only be approved if the fair market value of the health plan is set aside for charitable purposes. Each organization receiving a set-aside shall be independent of influence or control by the health care plan. They shall provide the Director of Insurance and the Attorney General with an annual report which includes a description of charitable activities. FEES - Applicants for restructuring or conversion shall pay a filing fee equal to the cost of processing the application, including overhead costs.