Cal. Code Regs. Tit. 22, § 53252 - Reinsurance
(a) The provisions
of Section
53251 notwithstanding, the prepaid
health plan may obtain reinsurance for the cost of providing covered services,
subject to the following conditions:
(1)
Reinsurance shall not reduce plan liability below $5,000 per member for any one
12-month period.
(2) Reinsurance
may cover both of the following:
(A) The total
cost of services provided to members under emergency circumstances by nonplan
providers, including the cost of inpatient care in a nonplan facility until
such time as the member may be safely transported to a plan facility.
(B) Up to 90 percent of all expenditures
related to the contract exceeding 115 percent of the plan's gross income from
capitation payments and third-party recoveries under the terms of the contract
during any plan fiscal year.
Notes
2. Amendment filed 12-10-79; effective thirtieth day thereafter (Register 79, No. 50).
Note: Authority cited: Section 14312, Welfare and Institutions Code. Reference: Section 14451.5(b), Welfare and Institutions Code.
2. Amendment filed 12-10-79; effective thirtieth day thereafter (Register 79, No. 50).
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