Section 10842 Of Article 5. Additional Powers Of And Restrictions On Purchasing Alliances From California Insurance Code >> Division 2. >> Part 2. >> Chapter 9. >> Article 5.
10842
. A purchasing alliance may do any of the following:
(a) Contract with qualified independent third parties for any
services necessary to carry out the powers and duties authorized or
required by this chapter.
(b) Employ necessary staff.
(c) Sue or be sued, including taking any legal actions necessary
or proper for recovering any penalties for or on behalf of the health
insurance purchasing group.
(d) Allow a participating employer to choose the benefit plan
design, from those offered by the purchasing alliance, to be made
available to their eligible employees.
(e) Allow eligible employees to enroll in any benefit plan design
offered by the purchasing alliance.
(f) Contract with licensed insurance agents or brokers to market
and service coverage made available through the purchasing alliance
to its members. Compensation for agents and brokers may not vary
based on the small employer or his or her enrollees and dependents'
actual or expected health status, industry, occupation, medical
utilization, claims experience, or geographic location within the
service region. This subdivision shall not apply with respect to a
compensation arrangement that provides compensation to an agent or
broker on the basis of percentage of premium; provided that
percentage shall not vary because of the health status, industry,
occupation, medical utilization, claims experience, or geographic
location within the service region.
(g) Exclude a carrier or freeze enrollment in a carrier for
failure to achieve established quality, access, or information
reporting standards of the purchasing alliance.