Current through 2025-03, January 15, 2025
Section 031-191-7 - Financial StandardsA. If an HMO is operated by a corporation which is chartered for divergent purposes, separate accounts shall be maintained respecting the HMO's operations as distinguished from other business functions of the corporation.B. An HMO shall maintain minimum surplus in an amount equal to the greater of: 2) Two percent (2%) of the first $150 million of annual premium revenues as reported in the HMO's most recent annual financial statement and one percent (1%) of the annual premium in excess of $150 million;3) An amount equal to three(3) months' uncovered health care expenditures as reported in the HMO's most recent annual statement;4) An amount equal to eight percent (8%) of the HMO's annual health expenditures, except those paid on a capitated basis, as reported on the HMO's most recent annual financial statement; or5) An amount of Risk-Based Capital sufficient to avoid a Company Action Level Risk-Based Capital Event as defined in 24-A M.R.S. §6453.02-031 C.M.R. ch. 191, § 7