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NOTES:
Source
(July 1, 1944, ch. 373, title XIII, § 1301, as added , § 2, Dec. 29, 1973, ; amended , title I, §§ 101,
,
,
, Oct. 8, 1976, ; , §§ 9(b),
,
–(d), Nov. 1, 1978, ; , § 2(b), July 10, 1979, ; , title IX, § 942(a)(1), (2), (b)–(e), Aug. 13, 1981, , 574; , §§ 2–4(a),
, (2), (b), Oct. 24, 1988, , 2579; , title I, §§ 102(b),
, Aug. 21, 1996, , 1988.)
References in Text
Section
of this title, referred to in subsec. (b)(1), (2), was redesignated section
of this title by , § 7(b), Oct. 24, 1988, .
The Social Security Act, referred to in subsec. (c)(3)(B), is act Aug. 14, 1935, ch. 531, , as amended. Title XIX of the Social Security Act is classified generally to subchapter XIX (§ 1396 et seq.) of chapter
of this title. For complete classification of this Act to the Code, see section
of this title and Tables.
Amendments
1996—Subsec. (b)(6). , § 193, added par. (6).
Subsec. (d). , § 102(b), added subsec. (d).
1988—Subsec. (a). , § 2, substituted “public or private entity which is organized under the laws of any State and” for “legal entity”.
Subsec. (b)(1). , § 3, inserted after second sentence “If a health maintenance organization offers to its members the opportunity to obtain basic health services through a physician not described in subsection (b)(3)(A) of this section, the organization may require, in addition to payments described in clause (D) of this paragraph, a reasonable deductible to be paid by a member when obtaining a basic health service from such a physician.”
Subsec. (b)(3)(A). , § 4(a), substituted “at least 90 percent of the services of a physician” for “the services of a physician”.
Subsec. (c). , § 5(a)(2), inserted at end “The Secretary shall issue regulations stating the circumstances under which the Secretary, in administering paragraph (1)(A), will consider the resources of an organization which owns or controls a health maintenance organization. Such regulations shall require as a condition to consideration of resources that an organization which owns or controls a health maintenance organization shall provide satisfactory assurances that it will assume the financial obligations of the health maintenance organization.”
Subsec. (c)(1)(A). , § 5(a)(1), amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: “have a fiscally sound operation and adequate provision against the risk of insolvency which is satisfactory to the Secretary, and”.
Subsec. (c)(5) to (9). , § 5(b), redesignated pars. (6) to (9) as (5) to (8), respectively, and struck out former par. (5) which read as follows: “(A) in the case of a private health maintenance organization, be organized in such a manner that assures that (i) at least one-third of the membership of the policymaking body of the health maintenance organization will be members of the organization, and (ii) there will be equitable representation on such body of members from medically underserved populations served by the organization, and (B) in the case of a public health maintenance organization, have an advisory board to the policymaking body of the public entity operating the organization which board meets the requirements of clause (A) of this paragraph and to which may be delegated policymaking authority for the organization;”.
1981—Subsec. (b). , § 942(a)(1), (2), (b), (c), in par. (3)(A)(iv) struck out reference to subpar. (C), in par. (3)(B) substituted “(B)” for “(B)(i)”, “(i)” for “(I)”, “(ii)” for “(II)”, and struck out cl. (ii) which related to forty-eight-month period after qualification as an organization, struck out par. (3)(C) which related to expiration of first four fiscal years as a qualified organization, redesignated par. (3)(D) as (3)(C) and substituted requirements respecting delivery and fiscal management, for requirements respecting appropriate continuing education, redesignated par. (3)(E) as (3)(D), and in par. (4) inserted provisions relating to service areas located in nonmetropolitan area, and substituted “with reasonable promptness” for “promptly as appropriate”.
Subsec. (c). , § 942(d)(1), (e), in par. (2) substituted provisions specifying requirements with respect to insurance, etc., for provisions generalizing such insurance, etc., requirements, and added cl. (D), struck out par. (4) which related to open enrollment period, redesignated pars. (5) to (8) as (4) to (7), respectively, added par. (8), struck out pars. (9) and (10) which related to medical social and health education services, and continuing education, respectively, and redesignated par. (11) as (9).
Subsec. (d). , § 942(d)(2), struck out subsec. (d) which related to requirements, etc., respecting open enrollment period.
1979—Subsec. (b)(3). amended directory language of section 11(a) of by substituting reference to section “1301” for “1310” of the Public Health Service Act, as section to be amended, and required no change in text because amendment made by had been executed to this section as the probable intent of Congress.
1978—Subsec. (b)(1). , §§ 10(a),
, inserted “except in the case of basic health services provided a member who is a full-time student (as defined by the Secretary) at an accredited institution of higher education,” after “the requirement of clause (C)” and inserted provisions permitting the health maintenance organization to seek reimbursement for the cost of services provided to a member who is entitled to benefits under a workmen’s compensation law or insurance policy.
Subsec. (b)(2). , § 10(a), inserted “unless the supplemental health services payment is for a supplemental health service provided a member who is a full-time student (as defined by the Secretary) at an accredited institution of higher education,” after “community rating system”.
Subsec. (b)(3). , § 11(a), as amended by , inserted provisions limiting the health maintenance organization from entering into contracts for health services with physicians other than members of the staff of the health maintenance organization, medical groups, or individual practice associations.
Subsec. (b)(4). , § 11(c), substituted “basic and supplemental” for “basic or supplemental” and “if the services were medically necessary and immediately required because of an unforeseen illness, injury, or condition” for “if it was medically necessary that the services be provided before it could secure them through the organization”.
Subsec. (b)(5). , § 11(d), added par. (5).
Subsec. (c)(1). , § 10(b), designated existing provisions as subpar. (A) and added subpar. (B).
Subsec. (c)(3). , § 9(b), designated existing provisions as subpar. (A) and added subpar. (B).
Subsec. (c)(6). , § 10(c), designated existing provisions as subpar. (A), inserted “in the case of a private health maintenance organization,” before “be organized in such”, and substituted “(i)” for “(A)” and “(ii)” for “(B)”, and added subpar. (B).
1976—Subsec. (b)(1). , §§ 101(a),
, provided that a health maintenance organization may include a health service, defined as a supplemental health service by section
of this title, in the basic health services provided its members for a basic health service payment described in the first sentence, and also provided that, in the case of an entity which before it became a qualified health maintenance organization (within the meaning of section
of this title) provided comprehensive health services on a prepaid basis, the requirement of clause (C) would not apply to such entity until the expiration of the forty-eight month period beginning with the month following the month in which the entity became such a qualified health organization.
Subsec. (b)(2). , §§ 101(b),
, substituted “the organization may provide to each of its members any of the health services which are included in supplemental health services (as defined in section
of this title)” for “the organization shall provide to each of its members each health service (A) which is included in supplemental health services (as defined in section
of this title), (B) for which the required health manpower are available in the area served by the organization, and (C) for the provision of which the member has contracted with the organization” and inserted “except that, in the case of an entity which before it became a qualified health maintenance organization (within the meaning of section
of this title) provided comprehensive health services on a prepaid basis, the requirement of this sentence shall not apply to such entity during the forty-eight month period beginning with the month following the month in which the entity became such a qualified health maintenance organization” after “Supplemental health services payments which are fixed on a prepayment basis shall be fixed under a community rating system”.
Subsec. (b)(3). , § 102(a), inserted references to health professionals who have contracted with the health maintenance organization for the provision of such services and to the combination of staff, medical groups, individual practice associations, or health professionals under contract with the health maintenance organization, and inserted provisions allowing a health maintenance organization, during the thirty-six month period beginning with the month following the month in which the organization becomes a qualified health maintenance organization (within the meaning of section
of this title), to provide basic and supplemental health services through an entity which but for the requirement of section
of this title would be a medical group for purposes of this subchapter, directing that after the expiration of such period, the organization may provide basic or supplemental health services through such an entity only if authorized by the Secretary in accordance with regulations which take into consideration the unusual circumstances of such entity, directing that a health maintenance organization may not, in any of its fiscal years, enter into contracts with health professionals or entities other than medical groups or individual practice associations if the amounts paid under such contracts for basic and supplemental health services exceed fifteen percent of the total amount to be paid in such fiscal year by the health maintenance organization to physicians for the provision of basic and supplemental health services, or, if the health maintenance organization principally serves a rural area, thirty percent of such amount, except that the sentence would not apply to the entering into of contracts for the purchase of basic and supplemental health services through an entity which but for the requirements of section
of this title would be a medical group for purposes of this subchapter, and directing that contracts between a health maintenance organization and health professionals for the provision of basic and supplemental health services include such provisions as the Secretary may require (including provisions requiring appropriate continuing education).
Subsec. (b)(4). , § 101(c), substituted “and only such supplemental health services as members have contracted for” for “and supplemental health services in the case of the members who have contracted therefor”.
Subsec. (c)(4). , § 103(a), substituted provisions making a simple reference to an open enrollment period in accordance with the provisions of subsec. (d) of this section for provisions spelling out in detail the requirements for a health maintenance organization with regard to an open enrollment period.
Subsec. (d). , § 103(b), added subsec. (d).
Effective Date of 1976 Amendment
Section 118 of title I of provided that:
“(a) Except as provided in subsection (b), the amendments made by this title [enacting section
of this title and amending this section, sections
to
,
, and
of this title, and section
of Title
, Government Organization and Employees] shall take effect on the date of the enactment of this Act [Oct. 8, 1976].
“(b)(1) The amendments made by sections
[amending this section], 102 [amending this section and section
of this title], 103 [amending this section], 104 [amending section
of this title], and 106 [amending section
of this title] shall (A) apply with respect to grants, contracts, loans, and loan guarantees made under sections 1303, 1304, and 1305 of the Public Health Service Act [sections
,
, and
of this title] for fiscal years beginning after September 30, 1976, (B) apply with respect to health benefit plans offered under section 1310 of such Act [section
of this title] after such date, and (C) for purposes of section
[section
of this title] take effect October 1, 1976.
“(2) Subsection (d) of section
of the Public Health Service Act [subsec. (d) of this section] (added by section 103(b) of this Act) shall take effect with respect to fiscal years of health maintenance organizations beginning on or after the date of the enactment of this Act [Oct. 8, 1976].
“(3) The amendments made by section
[amending sections
,
, and
of this title] shall apply with respect to grants, contracts, loans, and loan guarantees made under sections 1303, 1304, and 1305 of the Public Health Service Act [sections
,
and
of this title] for fiscal years beginning after September 30, 1976.
“(4) The amendments made by sections
[amending section
of this title] and 109(c) [amending section
of this title] shall apply with respect to loan guarantees made under section 1305 of the Public Health Service Act [section
of this title] after September 30, 1976.
“(5) The amendment made by section
[amending section
of this title] shall apply with respect to projects assisted under section 1304 of the Public Health Service Act [section
of this title] after September 30, 1976.
“(6) The amendments made by paragraphs (1) and (2) of section
[amending section
of this title] shall apply with respect to calendar quarters which begin after the date of the enactment of this Act [Oct. 8, 1976].
“(7) The amendments made by paragraphs (3) and (4) of section
[amending section
of this title] shall apply with respect to failures of employers to comply with section 1310(a) of the Public Health Service Act [section
of this title] after the date of the enactment of this Act [Oct. 8, 1976].
“(8) The amendment made by section
[amending section
of this title] shall apply with respect to determinations of the Secretary of Health, Education, and Welfare described in section 1312(a) of the Public Health Service Act [section
of this title] and made after the date of the enactment of this Act [Oct. 8, 1976].”
Short Title of 1978 Amendment
For short title of as the “Health Maintenance Organization Amendments of 1978”, see section 1 of , set out as a note under section
of this title.
Short Title of 1976 Amendment
For short title of which substantially amended this subchapter, as the “Health Maintenance Organization Amendments of 1976”, see section 1(a) of , set out as a note under section
of this title.
Short Title
For short title of , which enacted this subchapter, as the “Health Maintenance Organization Act of 1973”, see section 1 of , set out as a Short Title of 1973 Amendments note under section
of this title.
Qualification of Health Maintenance Organization Contingent Upon Controlling Organization’s Assumption of Financial Obligations and Meeting Other Requirements
Section 5(a)(3) of provided that: “During the period prior to the effective date of regulations issued under section 1301(c) of the Public Health Service Act [subsec. (c) of this section] (as amended by paragraph (2)), the Secretary of Health and Human Services shall consider the application for qualification under section 1301(c)(1)(A) of such Act of a health maintenance organization—
“(A) which is owned or controlled by another organization, and
“(B) which requests that the resources of the other organization be considered in determining its qualification under such section,
if the Secretary receives satisfactory assurances from the other organization that it will assume the financial obligations of the health maintenance organization and if the Secretary determines that the other organization meets such other requirements as the Secretary determines are necessary.”
Study on Health Maintenance Organization Program
, title VIII, § 813, Nov. 14, 1986, , which provided for a study to assess the operation and impact of the provisions of this subchapter and a report to Congress on the findings and conclusions of such study within 18 months after Nov. 14, 1986, was repealed by , title III, § 311(a), Oct. 27, 1992, , effective as if such repeal was enacted on Nov. 14, 1986.
Health Care Quality Assurance Programs Study
Section 4 of required Secretary of Health, Education, and Welfare to contract for conduct of a study of health care quality assurance programs and submit a final report to specific committees of Congress by Jan. 31, 1976.
Section Referred to in Other Sections
This section is referred to in sections
,
,
,
,
,
,
,
,
of this title; title
section
; title
section
; title
section
.
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