§ 27-41-28 - Applicability.
SECTION 27-41-28
§ 27-41-28 Applicability. – Notwithstanding any of the provisions of this chapter, except for §§27-41-5, 27-41-26, 27-41-35, and 27-41-37 which shall apply to all licensedhealth maintenance organizations including health maintenance organizationslicensed pursuant to chapter 17 of title 23, nothing contained in this chaptershall apply to those health maintenance organizations licensed pursuant tochapter 17 of title 23 which were actively engaged in the provision of ormaking available to enrolled participants health care services prior to January1, 1982; provided, that this exemption shall not under any circumstances haveeffect beyond July 1, 1994, and that on and after July 1, 1991, § 27-41-18shall also apply to all licensed health maintenance organizations licensedpursuant to chapter 17 of title 23. Any health maintenance organization whichwas actively engaged in the provision of or making available to enrolledparticipants health care services prior to January 1, 1982, including a healthmaintenance organization which experiences a "change in owner" or "change inoperator" as defined in § 23-17-2(3) and (2), respectively, may, at itsdiscretion, continue to be licensed under the requirements and provisions ofchapter 17 of title 23 until July 1, 1994, or under the requirements andprovisions of this chapter. That health maintenance organization shall bedeemed to be licensed under the requirements and the provisions of this chapterupon submission of materials required under § 27-41-3(b)(1), (2), (3), (4)and (11) sufficient and satisfactory to the director. Until July 1, 1998, thedirectors shall waive, reduce, or alter the requirements of §§27-41-4 and 27-41-13 for licensure for this defined class of health maintenanceorganizations unless after notice and hearing he or she finds that reasonableprogress is not being made toward meeting the requirements of those sections.After July 1, 1998 the director may waive, reduce, or alter the requirements of§§ 27-41-4 and 27-41-13 for licensure for this defined class ofhealth maintenance organizations if the licensee demonstrates to thesatisfaction of the director that it is making satisfactory progress towardcompliance with the requirements of those sections.