2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › HEALTH CARE COVERAGE (§§ 10-16-101 — 10-16.5-101) › Article 16 - HEALTH-CARE COVERAGE (§§ 10-16-101 — 10-16-1506) › Part 4 - HEALTH MAINTENANCE ORGANIZATIONS (§§ 10-16-401 — 10-16-429) › Section 10-16-402 - Issuance of certificate of authority - denial

(1)
(a)
Repealed.
(b)
The commissioner shall determine whether the applicant for a certificate of authority, with respect to health-care services to be furnished:
(I)
Has demonstrated the willingness and potential ability to assure that such health-care services will be provided in a manner to assure both availability and accessibility of adequate personnel and facilities and in a manner enhancing availability, accessibility, and continuity of service;
(II)
Has arrangements, established in accordance with regulations promulgated by the commissioner, for an ongoing quality of health care assurance program concerning health-care processes and outcomes; and
(III)
Has a procedure, established in accordance with regulations of the commissioner, to develop, compile, evaluate, and report statistics relating to the cost of its operations, the pattern of utilization of its services, the availability and accessibility of its services, and such other matters as may be reasonably required by the commissioner.
(c)
Repealed.
(2)
The commissioner shall issue a certificate of authority upon payment of the application fee prescribed in section
10-16-110 (2)
if the commissioner is satisfied that the following conditions are met:
(a)
The persons responsible for the conduct of the affairs of the applicant are competent, trustworthy, and possess good reputations;
(b)
The commissioner determines in accordance with subsection (1) of this section that the health maintenance organization's proposed plan of operation meets the requirements of subsection (1)(b) of this section;
(c)
(I)
The health maintenance organization will effectively provide or arrange for the provision of basic health-care services, through insurance or otherwise, except to the extent of reasonable requirements for copayments, deductibles, and payments for out-of-network services received pursuant to section
10-16-704 (2)
.
(II)
Nothing in this paragraph (c) shall prohibit a carrier from offering to a small employer additional options of a health benefit plan that:
(A)
Provides for different benefits for insureds and dependents of insureds covered by the same policy; and
(B)
Encourages appropriate health-care condition management based on clinical guidelines by providing case management benefits to covered persons.
(d)
The health maintenance organization is financially responsible and may reasonably be expected to meet its obligations to enrollees and prospective enrollees. In making this determination, the commissioner may consider:
(I)
The financial soundness of the health-care plan's arrangements for health-care services and the schedule of charges used in connection therewith;
(II)
The adequacy of working capital;
(III)
Any agreement with an insurer, a nonprofit hospital, medical-surgical, and health service corporation, a government, or any other organization for insuring the payment of the cost of health-care services or the provision for automatic applicability of an alternative coverage in the event of discontinuance of the plan;
(IV)
Any agreement with providers for the provision of health-care services;
(V)
Any surety bond or deposit of cash or securities submitted in accordance with section
10-16-412
as a guarantee that the obligations will be duly performed.
(e)
The enrollees will be afforded an opportunity to participate in matters of policy and operation pursuant to section
10-16-404
;
(f)
Nothing in the proposed method of operation, as shown by the information submitted pursuant to section
10-16-401
or by independent investigation, is contrary to the public interest;
(g)
Any deficiencies certified by the commissioner have been corrected.
(3)
A certificate of authority shall be denied only after compliance with the requirements of section
10-16-419
.
(4)
A certificate of authority shall expire on the last day of June in each year and shall be renewed annually if the company has continued to comply with the laws of this state.
Amended by 2017 Ch. 283, § 7, eff. 6/1/2017.
L. 92: Entire article R&RE, p. 1696, § 1, effective July 1; (4) added, p. 1599, § 124, effective July 1. L. 93: (2)(d)(V) amended, p. 1772, § 26, effective June 6. L. 2002: (2)(c) amended, p. 1296, § 11, effective 1/1/2003. L. 2003: (2)(c) amended, p. 1778, § 13, effective 1/1/2004. L. 2006: (2)(c)(I) amended, p. 1491, § 16, effective June 1. L. 2017: (1)(a) and (1)(c) repealed and IP(1)(b), (1)(b)(II), (1)(b)(III), IP(2), (2)(b), and (2)(g) amended, (SB 17-249), ch. 283, p. 1545, § 7, effective June 1.
This section is similar to former § 10-17-104 as it existed prior to 1992.