HB 3280 Summary

• Authorizes creation of nonprofit charitable and benevolent health maintenance organization (HMO) corporations under Oklahoma law to establish and operate nonprofit HMOs

• Allows existing Oklahoma-licensed domestic HMOs to amend their corporate documents to convert to nonprofit HMO status, with continuous business operation and existing licenses/certifications preserved

• Requires Insurance Commissioner approval of amended Certificate of Incorporation and Business Plan before conversion, and issuance of certificate of authority before nonprofit HMOs can issue contracts to subscribers

• Establishes four certification requirements: applicant must be bona fide nonprofit HMO, provider contracts must obligate service delivery, required working capital must be paid in without endangering solvency, and organization must meet Health Maintenance Organization Act of 2003 and risk-based capital requirements

• Effective July 1, 2014, with emergency clause for immediate effect upon passage and approval