Section 45-06-13-07 - Deposits1.Insolvency deposit.a. At the time of application, an organization shall deposit one hundred thousand dollars in cash or securities, or any combination thereof, into an account in a manner that is acceptable to the department. b. The deposit must be restricted to use in the event of insolvency to help assure continuation of services or pay costs associated with receivership or liquidation. c. At the time of the provider-sponsored organization's application for a certification of authority, and, thereafter, upon the department's request, a provider-sponsored organization shall provide the department with proof of the insolvency deposit, such proof to be in a form that the department considers appropriate. 2.Uncovered expenditures deposit.a. If at any time uncovered expenditures exceed ten percent of a provider-sponsored organization's total health care expenditures, then the provider-sponsored organization must place an uncovered expenditures deposit into an account with any organization or trustee that is acceptable to the department. b. The deposit must at all times have fair market value of an amount that is one hundred twenty percent of the provider-sponsored organization's outstanding liability for uncovered expenditures for enrollees, including incurred, but not reported, claims. c. The deposit must be calculated as of the first day of each month required and maintained for the remainder of each month required. d. If a provider-sponsored organization is not otherwise required to file a quarterly report, it must file a report within forty-five days of the end of the calendar quarter with information sufficient to demonstrate compliance with this section. e. The deposit required under this section is restricted and in trust for the department's use to protect the interests of the provider-sponsored organization's medicare enrollees and to pay the costs associated with administering the insolvency. It may be used only as provided under this section. 3.Deposit as asset. A provider-sponsored organization may use the deposits required under subsections 1 and 2 to satisfy the provider-sponsored organization's minimum net worth amount required under section 45-06-13-04. 4.Income. All income from the deposits or trust accounts required under subsections 1 and 2 is considered assets of the provider-sponsored organization. Upon the department's approval, the income from the deposits may be withdrawn. 5.Withdrawal. On prior written approval from the department, a provider-sponsored organization that has made a deposit under subsection 1 or 2may withdraw that deposit or any part thereof if: a. A substitute deposit of cash or securities of equal amount and value is made; b. The fair market value exceeds the amount of the required deposit; or c. The required deposit under subsection 1 or 2 is reduced or eliminated. N.D. Admin Code 45-06-13-07
Effective August 1, 2000.General Authority: NDCC 26.1-01-07.6
Law Implemented: NDCC 26.1-01-07.6