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HOUSE BILL NO. 538
INTRODUCED BY B. KASTEN
A BILL FOR AN ACT ENTITLED: "AN ACT MAKING HEALTH MAINTENANCE ORGANIZATIONS MEMBERS OF THE MONTANA COMPREHENSIVE HEALTH ASSOCIATION AND THEREBY SUBJECTING HEALTH MAINTENANCE ORGANIZATIONS TO ASSOCIATION ASSESSMENTS; SUBMITTING THE QUESTION OF HEALTH MAINTENANCE ORGANIZATION MEMBERSHIP IN THE ASSOCIATION TO THE ELECTORATE; AMENDING SECTION 33-22-1503, MCA; PROVIDING A CONTINGENT VOIDNESS PROVISION; AND PROVIDING AN EFFECTIVE DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 33-22-1503, MCA, is amended to read:
"33-22-1503. Comprehensive health association -- mandatory membership. (1) There is established a nonprofit legal entity, to be known as the Montana comprehensive health association, with participating membership consisting of all insurers, insurance arrangements, societies, health maintenance organizations, and health service corporations licensed or authorized to do business in this state. The association is exempt from taxation under the laws of this state, and all property owned by the association is exempt from taxation.
(2) All participating members shall maintain their membership in the association as a condition for writing health care benefits policies or contracts in this state. The association shall submit its articles, bylaws, and operating rules to the commissioner for approval.
(3) The association may:
(a) exercise the powers granted to insurers under the laws of this state;
(b) sue or be sued;
(c) enter into contracts with insurers, administrators, similar associations in other states, or other persons for the performance of administrative functions;
(d) establish administrative and accounting procedures for the operation of the association;
(e) provide for the reinsuring of risks incurred as a result of issuing the coverages required by members of the association;
(f) provide for the administration by the association of policies that are reinsured pursuant to subsection (3)(e); and
(g) issue additional types of health insurance policies to provide optional coverage, including medicare supplemental health insurance."
NEW SECTION. Section 2. Submission to electorate. This act shall be submitted to the qualified electors of Montana at the tax election to be held in 1999 by printing on the ballot the full title of this act and the following:
SHALL A NEW TAX, MAKING HEALTH MAINTENANCE ORGANIZATIONS MEMBERS OF THE MONTANA COMPREHENSIVE HEALTH ASSOCIATION THEREBY SUBJECTING THEM TO AN ASSESSMENT TO SUPPORT HEALTH INSURANCE FOR MONTANANS WHO HAVE LOST OR BEEN DENIED HEALTH INSURANCE, BE IMPOSED?
 FOR taxing health maintenance organizations to support health insurance for Montanans who have lost or been denied health insurance coverage.
 AGAINST taxing health maintenance organizations to support health insurance for Montanans who have lost or been denied health insurance coverage.
NEW SECTION. Section 3. Contingent voidness. (1) If Constitutional Initiative No. 75, enacting Article VIII, section 17, of the Montana constitution, is declared invalid, then this act is void.
(2) If a court of competent jurisdiction determines that Constitutional Initiative No. 75 does not apply to assessments by the Montana comprehensive health association, then this act is void.
NEW SECTION. Section 4. Effective date. This act is effective upon approval by the electorate.
- END -
Latest Version of HB 538 (HB0538.01)
Processed for the Web on February 6, 1999 (3:35PM)
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