Section 10731 Of Article 4. Purchasing Pool For Small Employers From California Insurance Code >> Division 2. >> Part 2. >> Chapter 8. >> Article 4.
10731
. The board may do any of the following:
(a) Enter into contracts with carriers to provide health benefits
coverage to eligible employees and their dependents. Any contract
entered into pursuant to this part shall be exempt from any provision
of law relating to competitive bidding, and shall be exempt from the
review or approval of any division of the Department of General
Services. The board shall not be required to specify the amounts
encumbered for each contract, but may allocate funds to each contract
based on projected and actual subscriber enrollments.
(b) Enter into other contracts as are necessary or proper to carry
out the provisions of this part.
(c) Employ necessary staff.
(d) Sue or be sued, including taking any legal actions necessary
or proper for recovering any penalties for, on behalf of, or against,
the program or any board member.
(e) Define the health benefits coverage which the program will
contract to purchase from participating carriers.
(f) Appoint committees, as necessary, to provide technical
assistance in the operation of the program.
(g) Assess participating employers a reasonable fee for necessary
costs in connection with the program.
(h) Undertake activities necessary to administer the program,
including marketing and publicizing the program, and assuring
carrier, employer, and enrollee compliance with program requirements.
(i) Establish rules, conditions, and procedures for participation
for small employers.
(j) Establish rules, conditions, and procedures for participation
for participating carriers.
(k) Establish a financial relationship directly with agents or
brokers to provide services pursuant to this program.
(l) Approve the benefit plan designs sold by carriers
participating in the pool.
(m) Issue rules and regulations as necessary to administer the
program. Any rules and regulations issued pursuant to this
subdivision may be adopted as emergency regulations in accordance
with the Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code). Until December 31, 1994, the adoption of these regulations
shall be deemed an emergency and necessary for the immediate
preservation of the public peace, health, and safety, or general
welfare.
(n) Exercise all powers reasonably necessary to carry out the
powers and responsibilities expressly granted or imposed by this
part.
(o) From money appropriated to the Major Risk Medical Insurance
Fund, the Major Risk Medical Insurance Board may loan funds for
operating expenses to establish the program. These funds shall be
repaid to the Major Risk Medical Insurance Fund prior to
transitioning administrative and financial responsibility for the
program to a qualified nonprofit entity pursuant to Sections 10748.5
and 10748.6.