§ 27-4.7-16 - Prior notification of discontinuance of health insurance coverage.
SECTION 27-4.7-16
§ 27-4.7-16 Prior notification ofdiscontinuance of health insurance coverage. – (a) At any time that a health organization elects to discontinue providing allhealth benefit plans to either individual or group policyholders in this state,the health organization shall provide written notice of this decision to thedirector of health and the director of the department of business regulationand to all affected health benefit plan group and individual policyholders atleast one hundred eighty (180) days prior to the planned date ofdiscontinuation of all health benefit plans by the health organization. Noticeto the director of health and the director of the department of businessregulation shall be provided at least five (5) working days prior to the noticeto affected enrollees.
(b) Any health organization in violation of this notificationrequirement is subject to an administrative penalty in an amount not less thanfive hundred dollars ($500) nor more than fifty thousand dollars ($50,000).