Sec. 38a-188. (Formerly Sec. 33-179p). Health care centers. Applicability of certain insurance statutes. Exemption from certain taxes. Evaluation of financial resources.
Sec. 38a-188. (Formerly Sec. 33-179p). Health care centers. Applicability of
certain insurance statutes. Exemption from certain taxes. Evaluation of financial
resources. Each health care center governed by sections 38a-175 to 38a-192, inclusive,
shall be exempt from the provisions of the general statutes relating to insurance in the
conduct of its operations under said sections and in such other activities as do constitute
the business of insurance, unless expressly included therein, and except for the following: Sections 38a-11, 38a-17, 38a-51, 38a-52, 38a-56, 38a-57, 38a-129 to 38a-140,
inclusive, 38a-147 and 38a-815 to 38a-819, inclusive, provided a health care center shall
not be deemed in violation of sections 38a-815 to 38a-819, inclusive, solely by virtue
of such center selectively contracting with certain providers in one or more specialties,
and sections 38a-80, 38a-492b, 38a-518b, 38a-543, 38a-702j, 38a-703 to 38a-718, inclusive, 38a-731 to 38a-735, inclusive, 38a-741 to 38a-745, inclusive, 38a-769, 38a-770,
38a-772 to 38a-777, inclusive, 38a-786, 38a-790, 38a-792 and 38a-794, provided a
health care center organized as a nonprofit, nonstock corporation shall be exempt from
sections 38a-146, 38a-702j, 38a-703 to 38a-718, inclusive, 38a-731 to 38a-735, inclusive, 38a-741 to 38a-745, inclusive, 38a-769, 38a-770, 38a-772 to 38a-777, inclusive,
38a-786, 38a-790, 38a-792 and 38a-794. If a health care center is operated as a line of
business, the foregoing provisions shall, where possible, be applied only to that line of
business and not to the organization as a whole. The commissioner may adopt regulations, in accordance with chapter 54, stating the circumstances under which the resources
of a person which controls a health care center, or operates a health care center as a line
of business will be considered in evaluating the financial condition of a health care
center. Such regulations, if adopted, shall require as a condition to the consideration of
the resources of such person which controls a health care center, or operates a health
care center as a line of business to provide satisfactory assurances to the commissioner
that such person will assume the financial obligations of the health care center. During
the period prior to the effective date of regulations issued under this section, the commissioner shall, upon request, consider the resources of a person which controls a health
care center, or operates a health care center as a line of business, if the commissioner
receives satisfactory assurances from such person that it will assume the financial obligations of the health care center and determines that such person meets such other requirements as the commissioner determines are necessary. A health care center organized as
a nonprofit, nonstock corporation shall be exempt from the sales and use tax and all
property of each such corporation shall be exempt from state, district and municipal
taxes. Each corporation governed by sections 38a-175 to 38a-192, inclusive, shall be
subject to the provisions of sections 38a-903 to 38a-961, inclusive. Nothing in this
section shall be construed to override contractual and delivery system arrangements
governing a health care center's provider relationships.
(1971, P.A. 445, S. 16; P.A. 81-101, S. 5; P.A. 82-415, S. 11, 18; P.A. 86-154, S. 1; P.A. 88-364, S. 97; P.A. 90-68, S.
11, 16; 90-243, S. 171; P.A. 01-113, S. 25, 42; P.A. 04-49, S. 1.)
History: P.A. 81-101 required that the Insurers Supervision, Rehabilitation and Liquidation Act (Ch. 694) be applicable
to health care centers; P.A. 82-415 limited the exemption from taxes to centers organized as nonprofit, nonstock corporations, where previously exemption applied to all centers; P.A. 86-154 listed certain sections of the general statutes relating
to insurance which shall be applicable to health care centers and specified that nothing in section overrides contractual
and delivery system arrangements governing a health care center's provider relationships; P.A. 88-364 added reference
to Sec. 38-174gg; P.A. 90-68 allowed the health care center an exemption from the insurance provisions of the general
statutes, established a provision that health care centers shall not be in violation of the unfair practices provisions of the
insurance statutes by selectively contracting with certain providers in a variety of specialties and added a provision by
which the commissioner may adopt regulations regarding the evaluation of the resources of an owner or operator of a
health care center in determining the financial condition of the health care center; P.A. 90-243 made technical changes for
statutory consistency; Sec. 33-179p transferred to Sec. 38a-188 in 1991; P.A. 01-113 deleted references to Secs. 38a-702
and 38a-795, and substituted "section 38a-702j" for "section 38a-783", effective September 1, 2002; P.A. 04-49 added
references to Secs. 38a-492b and 38a-518b and made technical changes.