38.2-4314 - Powers of insurers and health services plans.
§ 38.2-4314. Powers of insurers and health services plans.
A. An insurer or a health services plan licensed in this Commonwealth may,either directly or through a subsidiary or affiliate, organize and operate ahealth maintenance organization under the provisions of this chapter.Notwithstanding any other law that may be inconsistent with this section, anytwo or more licensed insurers, health services plans, or their subsidiariesor affiliates, may jointly organize and operate a health maintenanceorganization.
B. An insurer or a health services plan may contract with a healthmaintenance organization to provide insurance or similar protection againstthe cost of care provided through health maintenance organizations and toprovide coverage in the event of the failure of the health maintenanceorganization to meet its obligations. The enrollees of a health maintenanceorganization constitute a permissible group for purposes of laws applicableto insurers and health services plans. Under the contracts the insurer orhealth services plans may make benefit payments to health maintenanceorganizations for health care services rendered by providers under the healthcare plan.
(1980, c. 720, § 38.1-878; 1986, c. 562.)