{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-3407.12.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-3407.12.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-3407.12.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-3407.12.html"}],"law_id":68442,"edition_id":1,"section_id":68442,"structure_id":12994,"section_number":"38.2-3407.12","catch_line":"Patient optional point-of-service benefit","history":"1998, c. 908; 2013, c. 751; 2014, cc. 157, 417, 814; 2015, c. 709.","full_text":"A\n\nAs used in this section:\n\t\t\t“Affiliate” shall have the meaning set forth in \u00a7 38.2-1322.\n\t\t\t“Allowable charge” means the amount from which the carrier’s payment to a provider for any covered item or service is determined before taking into account any cost-sharing arrangement.\n\t\t\t“Carrier” means:1\n\nAny insurer licensed under this title proposing to offer or issue accident and sickness insurance policies which are subject to Chapter 34 (§ 38.2-3400 et seq.) or 39 (§ 38.2-3900 et seq.) of this title;2\n\nAny nonstock corporation licensed under this title proposing to issue or deliver subscription contracts for one or more health services plans, medical or surgical services plans or hospital services plans which are subject to Chapter 42 (§ 38.2-4200 et seq.) of this title;3\n\nAny health maintenance organization licensed under this title which provides or arranges for the provision of one or more health care plans which are subject to Chapter 43 (§ 38.2-4300 et seq.) of this title;4\n\nAny nonstock corporation licensed under this title proposing to issue or deliver subscription contracts for one or more dental or optometric services plans which are subject to Chapter 45 (§ 38.2-4500 et seq.) of this title; and5\n\nAny other person licensed under this title which provides or arranges for the provision of health care coverage or benefits or health care plans or provider panels which are subject to regulation as the business of insurance under this title.\n\t\t\t\t“Co-insurance” means the portion of the carrier’s allowable charge for the covered item or service which is not paid by the carrier and for which the enrollee is responsible.\n\t\t\t\t“Co-payment” means the out-of-pocket charge other than co-insurance or a deductible for an item or service to be paid by the enrollee to the provider towards the allowable charge as a condition of the receipt of specific health care items and services.\n\t\t\t\t“Cost sharing arrangement” means any co-insurance, co-payment, deductible or similar arrangement imposed by the carrier on the enrollee as a condition to or consequence of the receipt of covered items or services.\n\t\t\t\t“Deductible” means the dollar amount of a covered item or service which the enrollee is obligated to pay before benefits are payable under the carrier’s policy or contract with the group contract holder.\n\t\t\t\t“Enrollee” or “member” means any individual who is enrolled in a group health benefit plan provided or arranged by a health maintenance organization or other carrier. If a health maintenance organization arranges or contracts for the point-of-service benefit required under this section through another carrier, any enrollee selecting the point-of-service benefit shall be treated as an enrollee of that other carrier when receiving covered items or services under the point-of-service benefit.\n\t\t\t\t“Group contract holder” means any contract holder of a group health benefit plan offered or arranged by a health maintenance organization or other carrier. For purposes of this section, the group contract holder shall be the person to which the group agreement or contract for the group health benefit plan is issued.\n\t\t\t\t“Group health benefit plan” shall mean any health care plan, subscription contract, evidence of coverage, certificate, health services plan, medical or hospital services plan, accident and sickness insurance policy or certificate, or other similar certificate, policy, contract or arrangement, and any endorsement or rider thereto, offered, arranged or issued by a carrier to a group contract holder to cover all or a portion of the cost of enrollees (or their eligible dependents) receiving covered health care items or services. Group health benefit plan does not mean (i) health care plans, contracts or policies issued in the individual market; (ii) coverages issued pursuant to Title XVIII of the Social Security Act, 42 U.S.C. § 1395 et seq. (Medicare), Title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq. (Medicaid) or Title XXI of the Social Security Act, 42 U.S.C. § 1397aa et seq. (CHIP), 5 U.S.C. § 8901 et seq. (federal employees), 10 U.S.C. § 1071 et seq. (TRICARE) or Chapter 28 (§ 2.2-2800 et seq.) of Title 2.2 (state employees); (iii) accident only, credit or disability insurance, or long-term care insurance, plans providing only limited health care services under § 38.2-4300 (unless offered by endorsement or rider to a group health benefit plan), TRICARE supplement, Medicare supplement, or workers’ compensation coverages; or (iv) an employee welfare benefit plan (as defined in section 3 (1) of the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002 (1)), which is self-insured or self-funded.\n\t\t\t\t“Group specific administrative cost” means the direct administrative cost incurred by a carrier related to the offer of the point-of-service benefit to a particular group contract holder.\n\t\t\t\t“Health care plan” shall have the meaning set forth in § 38.2-4300.\n\t\t\t\t“Person” means any individual, corporation, trust, association, partnership, limited liability company, organization or other entity.\n\t\t\t\t“Point-of-service benefit” means a health maintenance organization’s delivery system or covered benefits, or the delivery system or covered benefits of another carrier under contract or arrangement with the health maintenance organization, which permit an enrollee (and eligible dependents) to receive covered items and services outside of the provider panel, including optometrists and clinical psychologists, of the health maintenance organization under the terms and conditions of the group contract holder’s group health benefit plan with the health maintenance organization or with another carrier arranged by or under contract with the health maintenance organization and which otherwise complies with this section. Without limiting the foregoing, the benefits offered or arranged by a carrier’s indemnity group accident and sickness policy under Chapter 34 (§ 38.2-3400 et seq.) of this title, health services plan under Chapter 42 (§ 38.2-4200 et seq.) of this title or preferred provider organization plan under Chapter 34 (§ 38.2-3400 et seq.) or 42 (§ 38.2-4200 et seq.) of this title which permit an enrollee (and eligible dependents) to receive the full range of covered items and services outside of a provider panel, including optometrists and clinical psychologists, and which are otherwise in compliance with applicable law and this section shall constitute a point-of-service benefit.\n\t\t\t\t“Preferred provider organization plan” means a health benefit program offered pursuant to a preferred provider policy or contract under § 38.2-3407 or covered services offered under a preferred provider subscription contract under § 38.2-4209.\n\t\t\t\t“Provider” means any physician, hospital or other person, including optometrists and clinical psychologists, that is licensed or otherwise authorized in the Commonwealth to deliver or furnish health care items or services.\n\t\t\t\t“Provider panel” means the participating providers or referral providers who have a contract, agreement or arrangement with a health maintenance organization or other carrier, either directly or through an intermediary, and who have agreed to provide items or services to enrollees of the health maintenance organization or other carrier.B\n\nTo the maximum extent permitted by applicable law, every health care plan offered or proposed to be offered in the large group market in the Commonwealth by a health maintenance organization licensed under this title to a group contract holder shall provide or include, or the health maintenance organization shall arrange for or contract with another carrier to provide or include, a point-of-service benefit to be provided or offered in conjunction with the health maintenance organization’s health care plan as an additional benefit for the enrollee, at the enrollee’s option, individually to accept or reject. In connection with its group enrollment application, every health maintenance organization shall, at no additional cost to the group contract holder, make available or arrange with a carrier to make available to the prospective group contract holder and to all prospective enrollees, in advance of initial enrollment and in advance of each reenrollment, a notice in form and substance acceptable to the Commission which accurately and completely explains to the group contract holder and prospective enrollee the point-of-service benefit and permits each enrollee to make his or her election. The form of notice provided in connection with any reenrollment may be the same as the approved form of notice used in connection with initial enrollment and may be made available to the group contract holder and prospective enrollee by the carrier in any reasonable manner.C\n\nTo the extent permitted under applicable law, a health maintenance organization providing or arranging, or contracting with another carrier to provide, the point-of-service benefit under this section and a carrier providing the point-of-service benefit required under this section under arrangement or contract with a health maintenance organization:1\n\nMay not impose, or permit to be imposed, a minimum enrollee participation level on the point-of-service benefit alone;2\n\nMay not refuse to reimburse a provider of the type listed or referred to in § 38.2-3408 or 38.2-4221 for items or services provided under the point-of-service benefit required under this section solely on the basis of the license or certification of the provider to provide such items or services if the carrier otherwise covers the items or services provided and the provision of the items or services is within the provider’s lawful scope of practice or authority; and3\n\nShall rate and underwrite all prospective enrollees of the group contract holder as a single group prior to any enrollee electing to accept or reject the point-of-service benefit.D\n\nThe premium imposed by a carrier with respect to enrollees who select the point-of-service benefit may be different from that imposed by the health maintenance organization with respect to enrollees who do not select the point-of-service benefit. Unless a group contract holder determines otherwise, any enrollee who accepts the point-of-service benefit shall be responsible for the payment of any premium over the amount of the premium applicable to an enrollee who selects the coverage offered by the health maintenance organization without the point-of-service benefit and for any identifiable group specific administrative cost incurred directly by the carrier or any administrative cost incurred by the group contract holder in offering the point-of-service benefit to the enrollee. If a carrier offers the point-of-service benefit to a group contract holder where no enrollees of the group contract holder elect to accept the point-of-service benefit and incurs an identifiable group specific administrative cost directly as a consequence of the offering to that group contract holder, the carrier may reflect that group specific administrative cost in the premium charged to other enrollees selecting the point-of-service benefit under this section. Unless the group contract holder otherwise directs or authorizes the carrier in writing, the carrier shall make reasonable efforts to ensure that no portion of the cost of offering or arranging the point-of-service benefit shall be reflected in the premium charged by the carrier to the group contract holder for a group health benefit plan without the point-of-service benefit. Any premium differential and any group specific administrative cost imposed by a carrier relating to the cost of offering or arranging the point-of-service benefit must be actuarially sound and supported by a sworn certification of an officer of each carrier offering or arranging the point-of-service benefit filed with the Commission certifying that the premiums are based on sound actuarial principles and otherwise comply with this section. The certifications shall be in a form, and shall be accompanied by such supporting information in a form acceptable to the Commission.E\n\nAny carrier may impose different co-insurance, co-payments, deductibles and other cost-sharing arrangements for the point-of-service benefit required under this section based on whether or not the item or service is provided through the provider panel of the health maintenance organization; provided that, except to the extent otherwise prohibited by applicable law, any such cost-sharing arrangement:1\n\nShall not impose on the enrollee (or his or her eligible dependents, as appropriate) any co-insurance percentage obligation which is payable by the enrollee which exceeds the greater of: (i) thirty percent of the carrier’s allowable charge for the items or services provided by the provider under the point-of-service benefit or (ii) the co-insurance amount which would have been required had the covered items or services been received through the provider panel;2\n\nShall not impose on an enrollee (or his or her eligible dependents, as appropriate) a co-payment or deductible which exceeds the greatest co-payment or deductible, respectively, imposed by the carrier or its affiliate under one or more other group health benefit plans providing a point-of-service benefit which are currently offered and actively marketed by the carrier or its affiliate in the Commonwealth and are subject to regulation under this title; and3\n\nShall not result in annual aggregate cost-sharing payments to the enrollee (or his or her eligible dependents, as appropriate) which exceed the greatest annual aggregate cost-sharing payments which would apply had the covered items or services been received under another group health benefit plan providing a point-of-service benefit which is currently offered and actively marketed by the carrier or its affiliate in the Commonwealth and which is subject to regulation under this title.F\n\nExcept to the extent otherwise required under applicable law, any carrier providing the point-of-service benefit required under this section may not utilize an allowable charge or basis for determining the amount to be reimbursed or paid to any provider from which covered items or services are received under the point-of-service benefit which is not at least as favorable to the provider as that used:1\n\nBy the carrier or its affiliate in calculating the reimbursement or payment to be made to similarly situated providers under another group health benefit plan providing a point-of-service benefit which is subject to regulation under this title and which is currently offered or arranged by the carrier or its affiliate and actively marketed in the Commonwealth, if the carrier or its affiliate offers or arranges another such group health benefit plan providing a point-of-service benefit in the Commonwealth; or2\n\nBy the health maintenance organization in calculating the reimbursement or payment to be made to similarly situated providers on its provider panel.G\n\nExcept as expressly permitted in this section or required under applicable law, no carrier shall impose on any person receiving or providing health care items or services under the point-of-service benefit any condition or penalty designed to discourage the enrollee’s selection or use of the point-of-service benefit, which is not otherwise similarly imposed either: (i) on enrollees in another group health benefit plan, if any, currently offered or arranged and actively marketed by the carrier or its affiliate in the Commonwealth or (ii) on enrollees who receive the covered items or services from the health maintenance organization’s provider panel. Nothing in this section shall preclude a carrier offering or arranging a point-of-service benefit from imposing on enrollees selecting the point-of-service benefit reasonable utilization review, preadmission certification or precertification requirements or other utilization or cost control measures which are similarly imposed on enrollees participating in one or more other group health benefit plans which are subject to regulation under this title and are currently offered and actively marketed by the carrier or its affiliates in the Commonwealth or which are otherwise required under applicable law.H\n\nExcept as expressly otherwise permitted in this section or as otherwise required under applicable law, the scope of the health care items and services which are covered under the point-of-service benefit required under this section shall at least include the same health care items and services which would be covered if provided under the health maintenance organization’s health care plan, including without limitation any items or services covered under a rider or endorsement to the applicable health care plan. Carriers shall be required to disclose prominently in all group health benefit plans and in all marketing materials utilized with respect to such group health benefit plans that the scope of the benefits provided under the point-of-service option are at least as great as those provided through the HMO’s health care plan for that group. Filings of point-of-service benefits submitted to the Commission shall be accompanied by a certification signed by an officer of the filing carrier certifying that the scope of the point-of-service benefits includes at a minimum the same health care items and services as are provided under the HMO’s group health care plan for that group.I\n\nNothing in this section shall prohibit a health maintenance organization from offering or arranging the point-of-service benefit (i) as a separate group health benefit plan or under a different name than the health maintenance organization’s group health benefit plan which does not contain the point-of-service benefit or (ii) from managing a group health benefit plan under which the point-of-service benefit is offered in a manner which separates or otherwise differentiates it from the group health benefit plan which does not contain the point-of-service benefit.J\n\nNotwithstanding anything in this section to the contrary, to the extent permitted under applicable law, no health maintenance organization shall be required to offer or arrange a point-of-service benefit under this section with respect to any group health benefit plan offered to a group contract holder if the health maintenance organization determines in good faith that the group contract holder will be concurrently offering another group health benefit plan or a self-insured or self-funded health benefit plan which allows the enrollees to access care from their provider of choice whether or not the provider is a member of the health maintenance organization’s panel.K\n\nThis section shall apply only to group health benefit plans issued in the Commonwealth in the commercial large group market by carriers regulated by this title and shall not apply to (i) health care plans, contracts or policies issued in the individual or small group market; (ii) coverages issued pursuant to Title XVIII of the Social Security Act, 42 U.S.C. § 1395 et seq. (Medicare), Title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq. (Medicaid) or Title XXI of the Social Security Act, 42 U.S.C. § 1397aa et seq. (CHIP), 5 U.S.C. § 8901 et seq. (federal employees), 10 U.S.C. § 1071 et seq. (TRICARE) or Chapter 28 (§ 2.2-2800 et seq.) of Title 2.2 (state employees); (iii) accident only, credit or disability insurance, or long-term care insurance, plans providing only limited health care services under § 38.2-4300 (unless offered by endorsement or rider to a group health benefit plan), TRICARE supplement, Medicare supplement, or workers’ compensation coverages; (iv) an employee welfare benefit plan (as defined in section 3 (1) of the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002 (1)), which is self-insured or self-funded; or (v) a qualified health plan when the plan is offered in the Commonwealth by a health carrier through a health benefit exchange established under § 1311 of the federal Patient Protection and Affordable Care Act (P.L. 111-148).L\n\nNothing in this section shall operate to limit any rights or obligations arising under § 38.2-3407, 38.2-3407.7, 38.2-3407.10, 38.2-3407.11, 38.2-4209, 38.2-4209.1, 38.2-4312, or 38.2-4312.1.","order_by":null,"text":{"0":{"id":247808,"text":"As used in this section:\n\t\t\t“Affiliate” shall have the meaning set forth in \u00a7 38.2-1322.\n\t\t\t“Allowable charge” means the amount from which the carrier’s payment to a provider for any covered item or service is determined before taking into account any cost-sharing arrangement.\n\t\t\t“Carrier” means:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":247809,"text":"Any insurer licensed under this title proposing to offer or issue accident and sickness insurance policies which are subject to Chapter 34 (§ 38.2-3400 et seq.) or 39 (§ 38.2-3900 et seq.) of this title;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":247810,"text":"Any nonstock corporation licensed under this title proposing to issue or deliver subscription contracts for one or more health services plans, medical or surgical services plans or hospital services plans which are subject to Chapter 42 (§ 38.2-4200 et seq.) of this title;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":247811,"text":"Any health maintenance organization licensed under this title which provides or arranges for the provision of one or more health care plans which are subject to Chapter 43 (§ 38.2-4300 et seq.) of this title;","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":247812,"text":"Any nonstock corporation licensed under this title proposing to issue or deliver subscription contracts for one or more dental or optometric services plans which are subject to Chapter 45 (§ 38.2-4500 et seq.) of this title; and","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":247813,"text":"Any other person licensed under this title which provides or arranges for the provision of health care coverage or benefits or health care plans or provider panels which are subject to regulation as the business of insurance under this title.\n\t\t\t\t“Co-insurance” means the portion of the carrier’s allowable charge for the covered item or service which is not paid by the carrier and for which the enrollee is responsible.\n\t\t\t\t“Co-payment” means the out-of-pocket charge other than co-insurance or a deductible for an item or service to be paid by the enrollee to the provider towards the allowable charge as a condition of the receipt of specific health care items and services.\n\t\t\t\t“Cost sharing arrangement” means any co-insurance, co-payment, deductible or similar arrangement imposed by the carrier on the enrollee as a condition to or consequence of the receipt of covered items or services.\n\t\t\t\t“Deductible” means the dollar amount of a covered item or service which the enrollee is obligated to pay before benefits are payable under the carrier’s policy or contract with the group contract holder.\n\t\t\t\t“Enrollee” or “member” means any individual who is enrolled in a group health benefit plan provided or arranged by a health maintenance organization or other carrier. If a health maintenance organization arranges or contracts for the point-of-service benefit required under this section through another carrier, any enrollee selecting the point-of-service benefit shall be treated as an enrollee of that other carrier when receiving covered items or services under the point-of-service benefit.\n\t\t\t\t“Group contract holder” means any contract holder of a group health benefit plan offered or arranged by a health maintenance organization or other carrier. For purposes of this section, the group contract holder shall be the person to which the group agreement or contract for the group health benefit plan is issued.\n\t\t\t\t“Group health benefit plan” shall mean any health care plan, subscription contract, evidence of coverage, certificate, health services plan, medical or hospital services plan, accident and sickness insurance policy or certificate, or other similar certificate, policy, contract or arrangement, and any endorsement or rider thereto, offered, arranged or issued by a carrier to a group contract holder to cover all or a portion of the cost of enrollees (or their eligible dependents) receiving covered health care items or services. Group health benefit plan does not mean (i) health care plans, contracts or policies issued in the individual market; (ii) coverages issued pursuant to Title XVIII of the Social Security Act, 42 U.S.C. § 1395 et seq. (Medicare), Title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq. (Medicaid) or Title XXI of the Social Security Act, 42 U.S.C. § 1397aa et seq. (CHIP), 5 U.S.C. § 8901 et seq. (federal employees), 10 U.S.C. § 1071 et seq. (TRICARE) or Chapter 28 (§ 2.2-2800 et seq.) of Title 2.2 (state employees); (iii) accident only, credit or disability insurance, or long-term care insurance, plans providing only limited health care services under § 38.2-4300 (unless offered by endorsement or rider to a group health benefit plan), TRICARE supplement, Medicare supplement, or workers’ compensation coverages; or (iv) an employee welfare benefit plan (as defined in section 3 (1) of the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002 (1)), which is self-insured or self-funded.\n\t\t\t\t“Group specific administrative cost” means the direct administrative cost incurred by a carrier related to the offer of the point-of-service benefit to a particular group contract holder.\n\t\t\t\t“Health care plan” shall have the meaning set forth in § 38.2-4300.\n\t\t\t\t“Person” means any individual, corporation, trust, association, partnership, limited liability company, organization or other entity.\n\t\t\t\t“Point-of-service benefit” means a health maintenance organization’s delivery system or covered benefits, or the delivery system or covered benefits of another carrier under contract or arrangement with the health maintenance organization, which permit an enrollee (and eligible dependents) to receive covered items and services outside of the provider panel, including optometrists and clinical psychologists, of the health maintenance organization under the terms and conditions of the group contract holder’s group health benefit plan with the health maintenance organization or with another carrier arranged by or under contract with the health maintenance organization and which otherwise complies with this section. Without limiting the foregoing, the benefits offered or arranged by a carrier’s indemnity group accident and sickness policy under Chapter 34 (§ 38.2-3400 et seq.) of this title, health services plan under Chapter 42 (§ 38.2-4200 et seq.) of this title or preferred provider organization plan under Chapter 34 (§ 38.2-3400 et seq.) or 42 (§ 38.2-4200 et seq.) of this title which permit an enrollee (and eligible dependents) to receive the full range of covered items and services outside of a provider panel, including optometrists and clinical psychologists, and which are otherwise in compliance with applicable law and this section shall constitute a point-of-service benefit.\n\t\t\t\t“Preferred provider organization plan” means a health benefit program offered pursuant to a preferred provider policy or contract under § 38.2-3407 or covered services offered under a preferred provider subscription contract under § 38.2-4209.\n\t\t\t\t“Provider” means any physician, hospital or other person, including optometrists and clinical psychologists, that is licensed or otherwise authorized in the Commonwealth to deliver or furnish health care items or services.\n\t\t\t\t“Provider panel” means the participating providers or referral providers who have a contract, agreement or arrangement with a health maintenance organization or other carrier, either directly or through an intermediary, and who have agreed to provide items or services to enrollees of the health maintenance organization or other carrier.","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"B"},"6":{"id":247814,"text":"To the maximum extent permitted by applicable law, every health care plan offered or proposed to be offered in the large group market in the Commonwealth by a health maintenance organization licensed under this title to a group contract holder shall provide or include, or the health maintenance organization shall arrange for or contract with another carrier to provide or include, a point-of-service benefit to be provided or offered in conjunction with the health maintenance organization’s health care plan as an additional benefit for the enrollee, at the enrollee’s option, individually to accept or reject. In connection with its group enrollment application, every health maintenance organization shall, at no additional cost to the group contract holder, make available or arrange with a carrier to make available to the prospective group contract holder and to all prospective enrollees, in advance of initial enrollment and in advance of each reenrollment, a notice in form and substance acceptable to the Commission which accurately and completely explains to the group contract holder and prospective enrollee the point-of-service benefit and permits each enrollee to make his or her election. The form of notice provided in connection with any reenrollment may be the same as the approved form of notice used in connection with initial enrollment and may be made available to the group contract holder and prospective enrollee by the carrier in any reasonable manner.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A5","next_prefix":"C"},"7":{"id":247815,"text":"To the extent permitted under applicable law, a health maintenance organization providing or arranging, or contracting with another carrier to provide, the point-of-service benefit under this section and a carrier providing the point-of-service benefit required under this section under arrangement or contract with a health maintenance organization:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"8":{"id":247816,"text":"May not impose, or permit to be imposed, a minimum enrollee participation level on the point-of-service benefit alone;","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"9":{"id":247817,"text":"May not refuse to reimburse a provider of the type listed or referred to in § 38.2-3408 or 38.2-4221 for items or services provided under the point-of-service benefit required under this section solely on the basis of the license or certification of the provider to provide such items or services if the carrier otherwise covers the items or services provided and the provision of the items or services is within the provider’s lawful scope of practice or authority; and","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"10":{"id":247818,"text":"Shall rate and underwrite all prospective enrollees of the group contract holder as a single group prior to any enrollee electing to accept or reject the point-of-service benefit.","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"D"},"11":{"id":247819,"text":"The premium imposed by a carrier with respect to enrollees who select the point-of-service benefit may be different from that imposed by the health maintenance organization with respect to enrollees who do not select the point-of-service benefit. Unless a group contract holder determines otherwise, any enrollee who accepts the point-of-service benefit shall be responsible for the payment of any premium over the amount of the premium applicable to an enrollee who selects the coverage offered by the health maintenance organization without the point-of-service benefit and for any identifiable group specific administrative cost incurred directly by the carrier or any administrative cost incurred by the group contract holder in offering the point-of-service benefit to the enrollee. If a carrier offers the point-of-service benefit to a group contract holder where no enrollees of the group contract holder elect to accept the point-of-service benefit and incurs an identifiable group specific administrative cost directly as a consequence of the offering to that group contract holder, the carrier may reflect that group specific administrative cost in the premium charged to other enrollees selecting the point-of-service benefit under this section. Unless the group contract holder otherwise directs or authorizes the carrier in writing, the carrier shall make reasonable efforts to ensure that no portion of the cost of offering or arranging the point-of-service benefit shall be reflected in the premium charged by the carrier to the group contract holder for a group health benefit plan without the point-of-service benefit. Any premium differential and any group specific administrative cost imposed by a carrier relating to the cost of offering or arranging the point-of-service benefit must be actuarially sound and supported by a sworn certification of an officer of each carrier offering or arranging the point-of-service benefit filed with the Commission certifying that the premiums are based on sound actuarial principles and otherwise comply with this section. The certifications shall be in a form, and shall be accompanied by such supporting information in a form acceptable to the Commission.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C3","next_prefix":"E"},"12":{"id":247820,"text":"Any carrier may impose different co-insurance, co-payments, deductibles and other cost-sharing arrangements for the point-of-service benefit required under this section based on whether or not the item or service is provided through the provider panel of the health maintenance organization; provided that, except to the extent otherwise prohibited by applicable law, any such cost-sharing arrangement:","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"E1"},"13":{"id":247821,"text":"Shall not impose on the enrollee (or his or her eligible dependents, as appropriate) any co-insurance percentage obligation which is payable by the enrollee which exceeds the greater of: (i) thirty percent of the carrier’s allowable charge for the items or services provided by the provider under the point-of-service benefit or (ii) the co-insurance amount which would have been required had the covered items or services been received through the provider panel;","type":"section","prefixes":["E","1"],"prefix":"1","entire_prefix":"E1","prefix_anchor":"E1","level":2,"prior_prefix":"E","next_prefix":"E2"},"14":{"id":247822,"text":"Shall not impose on an enrollee (or his or her eligible dependents, as appropriate) a co-payment or deductible which exceeds the greatest co-payment or deductible, respectively, imposed by the carrier or its affiliate under one or more other group health benefit plans providing a point-of-service benefit which are currently offered and actively marketed by the carrier or its affiliate in the Commonwealth and are subject to regulation under this title; and","type":"section","prefixes":["E","2"],"prefix":"2","entire_prefix":"E2","prefix_anchor":"E2","level":2,"prior_prefix":"E1","next_prefix":"E3"},"15":{"id":247823,"text":"Shall not result in annual aggregate cost-sharing payments to the enrollee (or his or her eligible dependents, as appropriate) which exceed the greatest annual aggregate cost-sharing payments which would apply had the covered items or services been received under another group health benefit plan providing a point-of-service benefit which is currently offered and actively marketed by the carrier or its affiliate in the Commonwealth and which is subject to regulation under this title.","type":"section","prefixes":["E","3"],"prefix":"3","entire_prefix":"E3","prefix_anchor":"E3","level":2,"prior_prefix":"E2","next_prefix":"F"},"16":{"id":247824,"text":"Except to the extent otherwise required under applicable law, any carrier providing the point-of-service benefit required under this section may not utilize an allowable charge or basis for determining the amount to be reimbursed or paid to any provider from which covered items or services are received under the point-of-service benefit which is not at least as favorable to the provider as that used:","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E3","next_prefix":"F1"},"17":{"id":247825,"text":"By the carrier or its affiliate in calculating the reimbursement or payment to be made to similarly situated providers under another group health benefit plan providing a point-of-service benefit which is subject to regulation under this title and which is currently offered or arranged by the carrier or its affiliate and actively marketed in the Commonwealth, if the carrier or its affiliate offers or arranges another such group health benefit plan providing a point-of-service benefit in the Commonwealth; or","type":"section","prefixes":["F","1"],"prefix":"1","entire_prefix":"F1","prefix_anchor":"F1","level":2,"prior_prefix":"F","next_prefix":"F2"},"18":{"id":247826,"text":"By the health maintenance organization in calculating the reimbursement or payment to be made to similarly situated providers on its provider panel.","type":"section","prefixes":["F","2"],"prefix":"2","entire_prefix":"F2","prefix_anchor":"F2","level":2,"prior_prefix":"F1","next_prefix":"G"},"19":{"id":247827,"text":"Except as expressly permitted in this section or required under applicable law, no carrier shall impose on any person receiving or providing health care items or services under the point-of-service benefit any condition or penalty designed to discourage the enrollee’s selection or use of the point-of-service benefit, which is not otherwise similarly imposed either: (i) on enrollees in another group health benefit plan, if any, currently offered or arranged and actively marketed by the carrier or its affiliate in the Commonwealth or (ii) on enrollees who receive the covered items or services from the health maintenance organization’s provider panel. Nothing in this section shall preclude a carrier offering or arranging a point-of-service benefit from imposing on enrollees selecting the point-of-service benefit reasonable utilization review, preadmission certification or precertification requirements or other utilization or cost control measures which are similarly imposed on enrollees participating in one or more other group health benefit plans which are subject to regulation under this title and are currently offered and actively marketed by the carrier or its affiliates in the Commonwealth or which are otherwise required under applicable law.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F2","next_prefix":"H"},"20":{"id":247828,"text":"Except as expressly otherwise permitted in this section or as otherwise required under applicable law, the scope of the health care items and services which are covered under the point-of-service benefit required under this section shall at least include the same health care items and services which would be covered if provided under the health maintenance organization’s health care plan, including without limitation any items or services covered under a rider or endorsement to the applicable health care plan. Carriers shall be required to disclose prominently in all group health benefit plans and in all marketing materials utilized with respect to such group health benefit plans that the scope of the benefits provided under the point-of-service option are at least as great as those provided through the HMO’s health care plan for that group. Filings of point-of-service benefits submitted to the Commission shall be accompanied by a certification signed by an officer of the filing carrier certifying that the scope of the point-of-service benefits includes at a minimum the same health care items and services as are provided under the HMO’s group health care plan for that group.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G","next_prefix":"I"},"21":{"id":247829,"text":"Nothing in this section shall prohibit a health maintenance organization from offering or arranging the point-of-service benefit (i) as a separate group health benefit plan or under a different name than the health maintenance organization’s group health benefit plan which does not contain the point-of-service benefit or (ii) from managing a group health benefit plan under which the point-of-service benefit is offered in a manner which separates or otherwise differentiates it from the group health benefit plan which does not contain the point-of-service benefit.","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H","next_prefix":"J"},"22":{"id":247830,"text":"Notwithstanding anything in this section to the contrary, to the extent permitted under applicable law, no health maintenance organization shall be required to offer or arrange a point-of-service benefit under this section with respect to any group health benefit plan offered to a group contract holder if the health maintenance organization determines in good faith that the group contract holder will be concurrently offering another group health benefit plan or a self-insured or self-funded health benefit plan which allows the enrollees to access care from their provider of choice whether or not the provider is a member of the health maintenance organization’s panel.","type":"section","prefixes":["J"],"prefix":"J","entire_prefix":"J","prefix_anchor":"J","level":1,"prior_prefix":"I","next_prefix":"K"},"23":{"id":247831,"text":"This section shall apply only to group health benefit plans issued in the Commonwealth in the commercial large group market by carriers regulated by this title and shall not apply to (i) health care plans, contracts or policies issued in the individual or small group market; (ii) coverages issued pursuant to Title XVIII of the Social Security Act, 42 U.S.C. § 1395 et seq. (Medicare), Title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq. (Medicaid) or Title XXI of the Social Security Act, 42 U.S.C. § 1397aa et seq. (CHIP), 5 U.S.C. § 8901 et seq. (federal employees), 10 U.S.C. § 1071 et seq. (TRICARE) or Chapter 28 (§ 2.2-2800 et seq.) of Title 2.2 (state employees); (iii) accident only, credit or disability insurance, or long-term care insurance, plans providing only limited health care services under § 38.2-4300 (unless offered by endorsement or rider to a group health benefit plan), TRICARE supplement, Medicare supplement, or workers’ compensation coverages; (iv) an employee welfare benefit plan (as defined in section 3 (1) of the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002 (1)), which is self-insured or self-funded; or (v) a qualified health plan when the plan is offered in the Commonwealth by a health carrier through a health benefit exchange established under § 1311 of the federal Patient Protection and Affordable Care Act (P.L. 111-148).","type":"section","prefixes":["K"],"prefix":"K","entire_prefix":"K","prefix_anchor":"K","level":1,"prior_prefix":"J","next_prefix":"L"},"24":{"id":247832,"text":"Nothing in this section shall operate to limit any rights or obligations arising under § 38.2-3407, 38.2-3407.7, 38.2-3407.10, 38.2-3407.11, 38.2-4209, 38.2-4209.1, 38.2-4312, or 38.2-4312.1.","type":"section","prefixes":["L"],"prefix":"L","entire_prefix":"L","prefix_anchor":"L","level":1,"prior_prefix":"K"}},"ancestry":[{"id":12994,"edition_id":1,"name":"General Provisions","identifier":"1","label":"article","depth":3,"order_by":1,"parent_id":12993,"metadata":{},"date_created":"2026-06-26 03:44:07","date_modified":"2026-06-26 03:44:07","permalink":{"id":214889,"object_type":"structure","relational_id":12994,"identifier":"1","token":"38.2\/34\/1","url":"\/38.2\/34\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12993,"edition_id":1,"name":"Provisions Relating to Accident and Sickness Insurance","identifier":"34","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:07","date_modified":"2026-06-26 03:44:07","permalink":{"id":214887,"object_type":"structure","relational_id":12993,"identifier":"34","token":"38.2\/34","url":"\/38.2\/34\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":57593,"structure_id":12994,"section_number":"38.2-3400","catch_line":"Application of chapter","url":"\/38.2-3400\/","token":"38.2\/34\/1\/38.2-3400","metadata":false},{"id":72072,"structure_id":12994,"section_number":"38.2-3401","catch_line":"Forms of insurance authorized","url":"\/38.2-3401\/","token":"38.2\/34\/1\/38.2-3401","metadata":false},{"id":65240,"structure_id":12994,"section_number":"38.2-3402","catch_line":"Certification to accompany application","url":"\/38.2-3402\/","token":"38.2\/34\/1\/38.2-3402","metadata":false},{"id":83988,"structure_id":12994,"section_number":"38.2-3403","catch_line":"Fraudulent procurement of policy","url":"\/38.2-3403\/","token":"38.2\/34\/1\/38.2-3403","metadata":false},{"id":65279,"structure_id":12994,"section_number":"38.2-3404","catch_line":"Commission may establish rules and regulations for simplified and readable accident and sickness insurance policies","url":"\/38.2-3404\/","token":"38.2\/34\/1\/38.2-3404","metadata":false},{"id":62539,"structure_id":12994,"section_number":"38.2-3405","catch_line":"Certain subrogation provisions and limitations upon recovery in hospital, medical, etc., policies forbidden; 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required provisions regarding prior authorization for health care services","url":"\/38.2-3407.15_8\/","token":"38.2\/34\/1\/38.2-3407.15_8","metadata":false},{"id":76440,"structure_id":12994,"section_number":"38.2-3407.16","catch_line":"Requirements for obstetrical care","url":"\/38.2-3407.16\/","token":"38.2\/34\/1\/38.2-3407.16","metadata":false},{"id":64799,"structure_id":12994,"section_number":"38.2-3407.17","catch_line":"Payment for services by dentists and oral surgeons","url":"\/38.2-3407.17\/","token":"38.2\/34\/1\/38.2-3407.17","metadata":false},{"id":55530,"structure_id":12994,"section_number":"38.2-3407.17:1","catch_line":"Payment and reimbursement practices for dental services; network access","url":"\/38.2-3407.17_1\/","token":"38.2\/34\/1\/38.2-3407.17_1","metadata":false},{"id":81770,"structure_id":12994,"section_number":"38.2-3407.18","catch_line":"Requirements for orally administered cancer chemotherapy drugs","url":"\/38.2-3407.18\/","token":"38.2\/34\/1\/38.2-3407.18","metadata":false},{"id":83502,"structure_id":12994,"section_number":"38.2-3407.19","catch_line":"Payment for services by optometrists and ophthalmologists","url":"\/38.2-3407.19\/","token":"38.2\/34\/1\/38.2-3407.19","metadata":false},{"id":77646,"structure_id":12994,"section_number":"38.2-3407.2","catch_line":"Coverage for medical child support","url":"\/38.2-3407.2\/","token":"38.2\/34\/1\/38.2-3407.2","metadata":false},{"id":73127,"structure_id":12994,"section_number":"38.2-3407.20","catch_line":"Calculation of enrollee's contribution to out-of-pocket maximum or cost-sharing requirement","url":"\/38.2-3407.20\/","token":"38.2\/34\/1\/38.2-3407.20","metadata":false},{"id":57407,"structure_id":12994,"section_number":"38.2-3407.21","catch_line":"Short-term limited-duration medical plans","url":"\/38.2-3407.21\/","token":"38.2\/34\/1\/38.2-3407.21","metadata":false},{"id":85964,"structure_id":12994,"section_number":"38.2-3407.22","catch_line":"Option for rebates to enrollees; protected information","url":"\/38.2-3407.22\/","token":"38.2\/34\/1\/38.2-3407.22","metadata":false},{"id":81846,"structure_id":12994,"section_number":"38.2-3407.3","catch_line":"Calculation of cost-sharing provisions","url":"\/38.2-3407.3\/","token":"38.2\/34\/1\/38.2-3407.3","metadata":false},{"id":62583,"structure_id":12994,"section_number":"38.2-3407.3:1","catch_line":"Premium payment arrearages; order of crediting payments","url":"\/38.2-3407.3_1\/","token":"38.2\/34\/1\/38.2-3407.3_1","metadata":false},{"id":78457,"structure_id":12994,"section_number":"38.2-3407.4","catch_line":"Explanation of benefits","url":"\/38.2-3407.4\/","token":"38.2\/34\/1\/38.2-3407.4","metadata":false},{"id":72294,"structure_id":12994,"section_number":"38.2-3407.4:1","catch_line":"Repealed","url":"\/38.2-3407.4_1\/","token":"38.2\/34\/1\/38.2-3407.4_1","metadata":false},{"id":57129,"structure_id":12994,"section_number":"38.2-3407.4:2","catch_line":"Requirements for prescription benefit cards","url":"\/38.2-3407.4_2\/","token":"38.2\/34\/1\/38.2-3407.4_2","metadata":false},{"id":62057,"structure_id":12994,"section_number":"38.2-3407.5","catch_line":"Denial of benefits for certain prescription drugs prohibited","url":"\/38.2-3407.5\/","token":"38.2\/34\/1\/38.2-3407.5","metadata":false},{"id":54072,"structure_id":12994,"section_number":"38.2-3407.5:1","catch_line":"Coverage for prescription contraceptives","url":"\/38.2-3407.5_1\/","token":"38.2\/34\/1\/38.2-3407.5_1","metadata":false},{"id":79611,"structure_id":12994,"section_number":"38.2-3407.5:2","catch_line":"Reimbursements for dispensing hormonal contraceptives","url":"\/38.2-3407.5_2\/","token":"38.2\/34\/1\/38.2-3407.5_2","metadata":false},{"id":83778,"structure_id":12994,"section_number":"38.2-3407.6","catch_line":"Exclusion of podiatrist not permitted under certain circumstances","url":"\/38.2-3407.6\/","token":"38.2\/34\/1\/38.2-3407.6","metadata":false},{"id":74649,"structure_id":12994,"section_number":"38.2-3407.6:1","catch_line":"Denial of benefits for certain prescription drugs prohibited","url":"\/38.2-3407.6_1\/","token":"38.2\/34\/1\/38.2-3407.6_1","metadata":false},{"id":72641,"structure_id":12994,"section_number":"38.2-3407.7","catch_line":"Pharmacies; freedom of choice","url":"\/38.2-3407.7\/","token":"38.2\/34\/1\/38.2-3407.7","metadata":false},{"id":73400,"structure_id":12994,"section_number":"38.2-3407.8","catch_line":"Repealed","url":"\/38.2-3407.8\/","token":"38.2\/34\/1\/38.2-3407.8","metadata":false},{"id":72540,"structure_id":12994,"section_number":"38.2-3407.9","catch_line":"Reimbursement for emergency medical services vehicle transportation services","url":"\/38.2-3407.9\/","token":"38.2\/34\/1\/38.2-3407.9","metadata":false},{"id":62232,"structure_id":12994,"section_number":"38.2-3407.9:01","catch_line":"Prescription drug formularies","url":"\/38.2-3407.9_01\/","token":"38.2\/34\/1\/38.2-3407.9_01","metadata":false},{"id":62074,"structure_id":12994,"section_number":"38.2-3407.9:02","catch_line":"Requirement for prescription drug coverage","url":"\/38.2-3407.9_02\/","token":"38.2\/34\/1\/38.2-3407.9_02","metadata":false},{"id":68601,"structure_id":12994,"section_number":"38.2-3407.9:03","catch_line":"Payment of clean claims to administrators of pharmacy benefits","url":"\/38.2-3407.9_03\/","token":"38.2\/34\/1\/38.2-3407.9_03","metadata":false},{"id":56568,"structure_id":12994,"section_number":"38.2-3407.9:04","catch_line":"Medication synchronization","url":"\/38.2-3407.9_04\/","token":"38.2\/34\/1\/38.2-3407.9_04","metadata":false},{"id":71499,"structure_id":12994,"section_number":"38.2-3407.9:05","catch_line":"Step therapy protocols","url":"\/38.2-3407.9_05\/","token":"38.2\/34\/1\/38.2-3407.9_05","metadata":false}],"previous_section":{"id":66706,"structure_id":12994,"section_number":"38.2-3407.11:5","catch_line":"Interhospital transfer for newborn or mother; prior authorization prohibited","url":"\/38.2-3407.11_5\/","token":"38.2\/34\/1\/38.2-3407.11_5","metadata":false},"next_section":{"id":81634,"structure_id":12994,"section_number":"38.2-3407.13","catch_line":"Refusal to accept assignments prohibited; dentists and oral surgeons","url":"\/38.2-3407.13\/","token":"38.2\/34\/1\/38.2-3407.13","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-3407.12\/","history_text":"

This law was first created in 1998. The record of its establishment is cataloged in chapter 908<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2013, chapter 751<\/a>; in 2014, chapters 157<\/a>, 417<\/a>, and 814<\/a>; in 2015, chapter 709<\/a>.<\/p>","references":false,"refers_to":[{"id":68109,"section_number":"2.2-2800","catch_line":"Disability to hold state office","order_by":null,"url":"\/2.2-2800\/"},{"id":66587,"section_number":"38.2-1322","catch_line":"Definitions","order_by":null,"url":"\/38.2-1322\/"},{"id":57593,"section_number":"38.2-3400","catch_line":"Application of chapter","order_by":null,"url":"\/38.2-3400\/"},{"id":76321,"section_number":"38.2-3407","catch_line":"Health benefit programs","order_by":null,"url":"\/38.2-3407\/"},{"id":58079,"section_number":"38.2-3407.10","catch_line":"Health care provider panels","order_by":null,"url":"\/38.2-3407.10\/"},{"id":82372,"section_number":"38.2-3407.11","catch_line":"Access to obstetrician-gynecologists","order_by":null,"url":"\/38.2-3407.11\/"},{"id":72641,"section_number":"38.2-3407.7","catch_line":"Pharmacies; freedom of choice","order_by":null,"url":"\/38.2-3407.7\/"},{"id":87046,"section_number":"38.2-3408","catch_line":"Policy providing for reimbursement for services that may be performed by certain practitioners other than physicians","order_by":null,"url":"\/38.2-3408\/"},{"id":85422,"section_number":"38.2-3900","catch_line":"Scope of chapter","order_by":null,"url":"\/38.2-3900\/"},{"id":78890,"section_number":"38.2-4200","catch_line":"Applicability of chapter","order_by":null,"url":"\/38.2-4200\/"},{"id":80669,"section_number":"38.2-4209","catch_line":"Preferred provider subscription contracts","order_by":null,"url":"\/38.2-4209\/"},{"id":67453,"section_number":"38.2-4209.1","catch_line":"Pharmacies; freedom of choice","order_by":null,"url":"\/38.2-4209.1\/"},{"id":74708,"section_number":"38.2-4221","catch_line":"Services of certain practitioners other than physicians to be covered","order_by":null,"url":"\/38.2-4221\/"},{"id":72005,"section_number":"38.2-4300","catch_line":"Definitions","order_by":null,"url":"\/38.2-4300\/"},{"id":62703,"section_number":"38.2-4312","catch_line":"Prohibited practices","order_by":null,"url":"\/38.2-4312\/"},{"id":82617,"section_number":"38.2-4312.1","catch_line":"Pharmacies; freedom of choice","order_by":null,"url":"\/38.2-4312.1\/"},{"id":59325,"section_number":"38.2-4500","catch_line":"Applicability of chapter","order_by":null,"url":"\/38.2-4500\/"}],"permalink":{"id":214975,"object_type":"law","relational_id":68442,"identifier":"38.2-3407.12","token":"38.2\/34\/1\/38.2-3407.12","url":"\/38.2-3407.12\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-3407.12\/","token":"38.2\/34\/1\/38.2-3407.12","dublin_core":{"Title":"Patient optional point-of-service benefit","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-3407.12","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section:\n\t\t\t“Affiliate” shall have the meaning set forth in \u00a7 38.2-1322<\/a>.\n\t\t\t“Allowable charge<\/span>” means the amount from which the carrier’s payment to a provider<\/span> for any covered item or service is determined before taking into account any cost-sharing arrangement.\n\t\t\t“Carrier” means: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Any insurer<\/span> licensed under this title proposing to offer or issue<\/span> accident and sickness insurance policies<\/span> which are subject to Chapter 34 (§ 38.2-3400<\/a> et seq.) or 39 (§ 38.2-3900<\/a> et seq.) of this title; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Any nonstock corporation licensed under this title proposing to issue<\/span> or deliver subscription contracts<\/span> for one or more health services plans<\/span>, medical or surgical services plans or hospital services plans which are subject to Chapter 42 (§ 38.2-4200<\/a> et seq.) of this title; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Any health maintenance organization licensed under this title which provides or arranges for the provision of one or more health care plans which are subject to Chapter 43 (§ 38.2-4300<\/a> et seq.) of this title; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Any nonstock corporation licensed under this title proposing to issue<\/span> or deliver subscription contracts<\/span> for one or more dental or optometric services plans which are subject to Chapter 45 (§ 38.2-4500<\/a> et seq.) of this title; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Any other person<\/span> licensed under this title which provides or arranges for the provision of health care coverage or benefits or health care plans or provider panels<\/span> which are subject to regulation as the business of insurance under this title.\n\t\t\t\t“Co-insurance<\/span>” means the portion of the carrier’s allowable charge<\/span> for the covered item or service which is not paid by the carrier and for which the enrollee<\/span> is responsible.\n\t\t\t\t“Co-payment<\/span>” means the out-of-pocket charge other than co-insurance<\/span> or a deductible<\/span> for an item or service to be paid by the enrollee<\/span> to the provider towards the allowable charge<\/span> as a condition of the receipt of specific health care items and services.\n\t\t\t\t“Cost sharing arrangement<\/span>” means any co-insurance<\/span>, co-payment<\/span>, deductible<\/span> or similar arrangement imposed by the carrier on the enrollee<\/span> as a condition to or consequence of the receipt of covered items or services.\n\t\t\t\t“Deductible<\/span>” means the dollar amount of a covered item or service which the enrollee<\/span> is obligated to pay before benefits are payable under the carrier’s policy or contract with the group contract holder<\/span>.\n\t\t\t\t“Enrollee<\/span>” or “member<\/span>” means any individual who is enrolled in a group health benefit plan<\/span> provided or arranged by a health maintenance organization or other carrier. If a health maintenance organization arranges or contracts<\/span> for the point-of-service benefit<\/span> required under this section through another carrier, any enrollee<\/span> selecting the point-of-service benefit<\/span> shall be treated as an enrollee<\/span> of that other carrier when receiving covered items or services under the point-of-service benefit<\/span>.\n\t\t\t\t“Group contract holder<\/span>” means any contract holder of a group health benefit plan<\/span> offered or arranged by a health maintenance organization or other carrier. For purposes of this section, the group contract holder<\/span> shall be the person<\/span> to which the group agreement or contract for the group health benefit plan<\/span> is issued.\n\t\t\t\t“Group health benefit plan<\/span>” shall mean any health care plan, subscription contract, evidence<\/span> of coverage, certificate, health services plan<\/span>, medical or hospital services plan, accident and sickness insurance policy or certificate, or other similar certificate, policy, contract or arrangement, and any endorsement or rider thereto, offered, arranged or issued by a carrier to a group contract holder<\/span> to cover all or a portion of the cost of enrollees<\/span> (or their eligible dependents) receiving covered health care items or services. Group health benefit plan<\/span> does not mean (i) health care plans, contracts<\/span> or policies issued in the individual market; (ii) coverages issued pursuant to Title XVIII of the Social Security Act, 42 U.S.C. § 1395 et seq. (Medicare<\/span>), Title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq. (Medicaid) or Title XXI of the Social Security Act, 42 U.S.C. § 1397aa et seq. (CHIP), 5 U.S.C. § 8901 et seq. (federal employees), 10 U.S.C. § 1071 et seq. (TRICARE) or Chapter 28 (§ 2.2-2800<\/a> et seq.) of Title 2.2 (state<\/span> employees); (iii) accident only, credit or disability insurance, or long-term care insurance, plans providing only limited health care services under § 38.2-4300<\/a> (unless offered by endorsement or rider to a group health benefit plan<\/span>), TRICARE supplement, Medicare<\/span> supplement, or workers’ compensation coverages; or (iv) an employee welfare benefit plan (as defined in section 3 (1) of the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002 (1)), which is self-insured or self-funded.\n\t\t\t\t“Group specific administrative cost<\/span>” means the direct administrative cost incurred by a carrier related to the offer of the point-of-service benefit<\/span> to a particular group contract holder<\/span>.\n\t\t\t\t“Health care plan” shall have the meaning set forth in § 38.2-4300<\/a>.\n\t\t\t\t“Person<\/span>” means any individual, corporation, trust, association, partnership, limited liability company<\/span>, organization or other entity.\n\t\t\t\t“Point-of-service benefit<\/span>” means a health maintenance organization’s delivery system or covered benefits, or the delivery system or covered benefits of another carrier under contract or arrangement with the health maintenance organization, which permit an enrollee<\/span> (and eligible dependents) to receive covered items and services outside of the provider panel<\/span>, including optometrists and clinical psychologists, of the health maintenance organization under the terms and conditions of the group contract holder<\/span>’s group health benefit plan<\/span> with the health maintenance organization or with another carrier arranged by or under contract with the health maintenance organization and which otherwise complies with this section. Without limiting the foregoing, the benefits offered or arranged by a carrier’s indemnity group accident and sickness policy under Chapter 34 (§ 38.2-3400<\/a> et seq.) of this title, health services plan<\/span> under Chapter 42 (§ 38.2-4200<\/a> et seq.) of this title or preferred provider organization plan<\/span> under Chapter 34 (§ 38.2-3400<\/a> et seq.) or 42 (§ 38.2-4200<\/a> et seq.) of this title which permit an enrollee<\/span> (and eligible dependents) to receive the full range of covered items and services outside of a provider panel<\/span>, including optometrists and clinical psychologists, and which are otherwise in compliance with applicable law<\/span> and this section shall constitute a point-of-service benefit<\/span>.\n\t\t\t\t“Preferred provider organization plan<\/span>” means a health benefit program offered pursuant to a preferred provider policy or contract under § 38.2-3407<\/a> or covered services offered under a preferred provider subscription contract under § 38.2-4209<\/a>.\n\t\t\t\t“Provider” means any physician, hospital or other person<\/span>, including optometrists and clinical psychologists, that is licensed or otherwise authorized in the Commonwealth to deliver or furnish health care items or services.\n\t\t\t\t“Provider panel<\/span>” means the participating providers<\/span> or referral providers<\/span> who have a contract, agreement or arrangement with a health maintenance organization or other carrier, either directly or through an intermediary, and who have agreed to provide items or services to enrollees<\/span> of the health maintenance organization or other carrier. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> To the maximum extent permitted by applicable law<\/span>, every health care plan offered or proposed to be offered in the large group market in the Commonwealth by a health maintenance organization licensed under this title to a group contract holder<\/span> shall provide or include, or the health maintenance organization shall arrange for or contract with another carrier to provide or include, a point-of-service benefit<\/span> to be provided or offered in conjunction with the health maintenance organization’s health care plan as an additional benefit for the enrollee<\/span>, at the enrollee<\/span>’s option, individually to accept or reject. In connection with its group enrollment application, every health maintenance organization shall, at no additional cost to the group contract holder<\/span>, make available or arrange with a carrier to make available to the prospective group contract holder<\/span> and to all prospective enrollees<\/span>, in advance of initial enrollment and in advance of each reenrollment, a notice in form and substance acceptable to the Commission<\/span> which accurately and completely explains to the group contract holder<\/span> and prospective enrollee<\/span> the point-of-service benefit<\/span> and permits each enrollee<\/span> to make his or her election. The form of notice provided in connection with any reenrollment may be the same as the approved form of notice used in connection with initial enrollment and may be made available to the group contract holder<\/span> and prospective enrollee<\/span> by the carrier in any reasonable manner. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> To the extent permitted under applicable law<\/span>, a health maintenance organization providing or arranging, or contracting with another carrier to provide, the point-of-service benefit<\/span> under this section and a carrier providing the point-of-service benefit<\/span> required under this section under arrangement or contract with a health maintenance organization: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> May not impose, or permit to be imposed, a minimum enrollee<\/span> participation level on the point-of-service benefit<\/span> alone; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> May not refuse to reimburse a provider of the type listed or referred to in § 38.2-3408<\/a> or 38.2-4221<\/a> for items or services provided under the point-of-service benefit<\/span> required under this section solely on the basis of the license or certification of the provider to provide such items or services if the carrier otherwise covers the items or services provided and the provision of the items or services is within the provider’s lawful scope of practice or authority; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Shall rate<\/span> and underwrite all prospective enrollees<\/span> of the group contract holder<\/span> as a single group prior to any enrollee<\/span> electing to accept or reject the point-of-service benefit<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The premium imposed by a carrier with respect to enrollees<\/span> who select the point-of-service benefit<\/span> may be different from that imposed by the health maintenance organization with respect to enrollees<\/span> who do not select the point-of-service benefit<\/span>. Unless a group contract holder<\/span> determines otherwise, any enrollee<\/span> who accepts the point-of-service benefit<\/span> shall be responsible for the payment of any premium over the amount of the premium applicable to an enrollee<\/span> who selects the coverage offered by the health maintenance organization without the point-of-service benefit<\/span> and for any identifiable group specific administrative cost<\/span> incurred directly by the carrier or any administrative cost incurred by the group contract holder<\/span> in offering the point-of-service benefit<\/span> to the enrollee<\/span>. If a carrier offers the point-of-service benefit<\/span> to a group contract holder<\/span> where no enrollees<\/span> of the group contract holder<\/span> elect to accept the point-of-service benefit<\/span> and incurs an identifiable group specific administrative cost<\/span> directly as a consequence of the offering to that group contract holder<\/span>, the carrier may reflect that group specific administrative cost<\/span> in the premium charged to other enrollees<\/span> selecting the point-of-service benefit<\/span> under this section. Unless the group contract holder<\/span> otherwise directs or authorizes the carrier in writing, the carrier shall make reasonable efforts to ensure that no portion of the cost of offering or arranging the point-of-service benefit<\/span> shall be reflected in the premium charged by the carrier to the group contract holder<\/span> for a group health benefit plan<\/span> without the point-of-service benefit<\/span>. Any premium differential and any group specific administrative cost<\/span> imposed by a carrier relating to the cost of offering or arranging the point-of-service benefit<\/span> must be actuarially sound and supported by a sworn certification of an officer of each carrier offering or arranging the point-of-service benefit<\/span> filed with the Commission<\/span> certifying that the premiums are based on sound actuarial principles and otherwise comply with this section. The certifications shall be in a form, and shall be accompanied by such supporting information in a form acceptable to the Commission<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Any carrier may impose different co-insurance<\/span>, co-payments<\/span>, deductibles<\/span> and other cost-sharing arrangements for the point-of-service benefit<\/span> required under this section based on whether or not the item or service is provided through the provider panel<\/span> of the health maintenance organization; provided that, except to the extent otherwise prohibited by applicable law<\/span>, any such cost-sharing arrangement: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Shall not impose on the enrollee<\/span> (or his or her eligible dependents, as appropriate) any co-insurance<\/span> percentage obligation which is payable by the enrollee<\/span> which exceeds the greater of: (i) thirty percent of the carrier’s allowable charge<\/span> for the items or services provided by the provider under the point-of-service benefit<\/span> or (ii) the co-insurance<\/span> amount which would have been required had the covered items or services been received through the provider panel<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Shall not impose on an enrollee<\/span> (or his or her eligible dependents, as appropriate) a co-payment<\/span> or deductible<\/span> which exceeds the greatest co-payment<\/span> or deductible<\/span>, respectively, imposed by the carrier or its affiliate under one or more other group health benefit plans<\/span> providing a point-of-service benefit<\/span> which are currently offered and actively marketed by the carrier or its affiliate in the Commonwealth and are subject to regulation under this title; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Shall not result in annual aggregate cost-sharing payments to the enrollee<\/span> (or his or her eligible dependents, as appropriate) which exceed the greatest annual aggregate cost-sharing payments which would apply had the covered items or services been received under another group health benefit plan<\/span> providing a point-of-service benefit<\/span> which is currently offered and actively marketed by the carrier or its affiliate in the Commonwealth and which is subject to regulation under this title. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Except to the extent otherwise required under applicable law<\/span>, any carrier providing the point-of-service benefit<\/span> required under this section may not utilize an allowable charge<\/span> or basis for determining the amount to be reimbursed or paid to any provider from which covered items or services are received under the point-of-service benefit<\/span> which is not at least as favorable to the provider as that used: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> By the carrier or its affiliate in calculating the reimbursement or payment to be made to similarly situated providers<\/span> under another group health benefit plan<\/span> providing a point-of-service benefit<\/span> which is subject to regulation under this title and which is currently offered or arranged by the carrier or its affiliate and actively marketed in the Commonwealth, if the carrier or its affiliate offers or arranges another such group health benefit plan<\/span> providing a point-of-service benefit<\/span> in the Commonwealth; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> By the health maintenance organization in calculating the reimbursement or payment to be made to similarly situated providers<\/span> on its provider panel<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> Except as expressly permitted in this section or required under applicable law<\/span>, no carrier shall impose on any person<\/span> receiving or providing health care items or services under the point-of-service benefit<\/span> any condition or penalty<\/span> designed to discourage the enrollee<\/span>’s selection or use of the point-of-service benefit<\/span>, which is not otherwise similarly imposed either: (i) on enrollees<\/span> in another group health benefit plan<\/span>, if any, currently offered or arranged and actively marketed by the carrier or its affiliate in the Commonwealth or (ii) on enrollees<\/span> who receive the covered items or services from the health maintenance organization’s provider panel<\/span>. Nothing in this section shall preclude a carrier offering or arranging a point-of-service benefit<\/span> from imposing on enrollees<\/span> selecting the point-of-service benefit<\/span> reasonable utilization review, preadmission certification or precertification requirements or other utilization or cost control measures which are similarly imposed on enrollees<\/span> participating in one or more other group health benefit plans<\/span> which are subject to regulation under this title and are currently offered and actively marketed by the carrier or its affiliates in the Commonwealth or which are otherwise required under applicable law<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> Except as expressly otherwise permitted in this section or as otherwise required under applicable law<\/span>, the scope of the health care items and services which are covered under the point-of-service benefit<\/span> required under this section shall at least include the same health care items and services which would be covered if provided under the health maintenance organization’s health care plan, including without limitation any items or services covered under a rider or endorsement to the applicable health care plan. Carriers shall be required to disclose prominently in all group health benefit plans<\/span> and in all marketing materials<\/span> utilized with respect to such group health benefit plans<\/span> that the scope of the benefits provided under the point-of-service option are at least as great as those provided through the HMO’s health care plan for that group. Filings of point-of-service benefits<\/span> submitted to the Commission<\/span> shall be accompanied by a certification signed by an officer of the filing carrier certifying that the scope of the point-of-service benefits<\/span> includes at a minimum the same health care items and services as are provided under the HMO’s group health care plan for that group. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> Nothing in this section shall prohibit a health maintenance organization from offering or arranging the point-of-service benefit<\/span> (i) as a separate group health benefit plan<\/span> or under a different name than the health maintenance organization’s group health benefit plan<\/span> which does not contain the point-of-service benefit<\/span> or (ii) from managing a group health benefit plan<\/span> under which the point-of-service benefit<\/span> is offered in a manner which separates or otherwise differentiates it from the group health benefit plan<\/span> which does not contain the point-of-service benefit<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

J.<\/span> Notwithstanding anything in this section to the contrary, to the extent permitted under applicable law<\/span>, no health maintenance organization shall be required to offer or arrange a point-of-service benefit<\/span> under this section with respect to any group health benefit plan<\/span> offered to a group contract holder<\/span> if the health maintenance organization determines in good faith that the group contract holder<\/span> will be concurrently offering another group health benefit plan<\/span> or a self-insured or self-funded health benefit plan which allows the enrollees<\/span> to access care from their provider of choice whether or not the provider is a member<\/span> of the health maintenance organization’s panel. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

K.<\/span> This section shall apply only to group health benefit plans<\/span> issued in the Commonwealth in the commercial large group market by carriers regulated by this title and shall not apply to (i) health care plans, contracts<\/span> or policies issued in the individual or small group market; (ii) coverages issued pursuant to Title XVIII of the Social Security Act, 42 U.S.C. § 1395 et seq. (Medicare<\/span>), Title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq. (Medicaid) or Title XXI of the Social Security Act, 42 U.S.C. § 1397aa et seq. (CHIP), 5 U.S.C. § 8901 et seq. (federal employees), 10 U.S.C. § 1071 et seq. (TRICARE) or Chapter 28 (§ 2.2-2800<\/a> et seq.) of Title 2.2 (state<\/span> employees); (iii) accident only, credit or disability insurance, or long-term care insurance, plans providing only limited health care services under § 38.2-4300<\/a> (unless offered by endorsement or rider to a group health benefit plan<\/span>), TRICARE supplement, Medicare<\/span> supplement, or workers’ compensation coverages; (iv) an employee welfare benefit plan (as defined in section 3 (1) of the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002 (1)), which is self-insured or self-funded; or (v) a qualified health plan when the plan is offered in the Commonwealth by a health carrier through a health benefit exchange established under § 1311 of the federal Patient Protection and Affordable Care Act (P.L. 111-148). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

L.<\/span> Nothing in this section shall operate to limit any rights or obligations arising under § 38.2-3407<\/a>, 38.2-3407.7<\/a>, 38.2-3407.10<\/a>, 38.2-3407.11<\/a>, 38.2-4209<\/a>, 38.2-4209.1<\/a>, 38.2-4312<\/a>, or 38.2-4312.1<\/a>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPATIENT OPTIONAL POINT-OF-SERVICE BENEFIT (\u00a7 38.2-3407.12)\n\nA. As used in this section:\n\t\t\t“Affiliate” shall have the meaning set forth in \u00a7 38.2-1322.\n\t\t\t“Allowable charge” means the amount from which the\ncarrier’s payment to a provider for any covered item or service is\ndetermined before taking into account any cost-sharing arrangement.\n\t\t\t“Carrier” means:\n\n 1. Any insurer licensed under this title proposing to offer or issue accident\n and sickness insurance policies which are subject to Chapter 34 (§\n 38.2-3400 et seq.) or 39 (§ 38.2-3900 et seq.) of this title;\n\n 2. Any nonstock corporation licensed under this title proposing to issue or\n deliver subscription contracts for one or more health services plans, medical\n or surgical services plans or hospital services plans which are subject to\n Chapter 42 (§ 38.2-4200 et seq.) of this title;\n\n 3. Any health maintenance organization licensed under this title which\n provides or arranges for the provision of one or more health care plans which\n are subject to Chapter 43 (§ 38.2-4300 et seq.) of this title;\n\n 4. Any nonstock corporation licensed under this title proposing to issue or\n deliver subscription contracts for one or more dental or optometric services\n plans which are subject to Chapter 45 (§ 38.2-4500 et seq.) of this\n title; and\n\n 5. Any other person licensed under this title which provides or arranges for\n the provision of health care coverage or benefits or health care plans or\n provider panels which are subject to regulation as the business of insurance\n under this title.\n \t\t\t\t“Co-insurance” means the portion of the carrier’s\n allowable charge for the covered item or service which is not paid by the\n carrier and for which the enrollee is responsible.\n \t\t\t\t“Co-payment” means the out-of-pocket charge other than\n co-insurance or a deductible for an item or service to be paid by the enrollee\n to the provider towards the allowable charge as a condition of the receipt of\n specific health care items and services.\n \t\t\t\t“Cost sharing arrangement” means any co-insurance, co-payment,\n deductible or similar arrangement imposed by the carrier on the enrollee as a\n condition to or consequence of the receipt of covered items or services.\n \t\t\t\t“Deductible” means the dollar amount of a covered item or\n service which the enrollee is obligated to pay before benefits are payable\n under the carrier’s policy or contract with the group contract holder.\n \t\t\t\t“Enrollee” or “member” means any individual who is\n enrolled in a group health benefit plan provided or arranged by a health\n maintenance organization or other carrier. If a health maintenance\n organization arranges or contracts for the point-of-service benefit required\n under this section through another carrier, any enrollee selecting the\n point-of-service benefit shall be treated as an enrollee of that other carrier\n when receiving covered items or services under the point-of-service benefit.\n \t\t\t\t“Group contract holder” means any contract holder of a group\n health benefit plan offered or arranged by a health maintenance organization\n or other carrier. For purposes of this section, the group contract holder\n shall be the person to which the group agreement or contract for the group\n health benefit plan is issued.\n \t\t\t\t“Group health benefit plan” shall mean any health care plan,\n subscription contract, evidence of coverage, certificate, health services\n plan, medical or hospital services plan, accident and sickness insurance\n policy or certificate, or other similar certificate, policy, contract or\n arrangement, and any endorsement or rider thereto, offered, arranged or issued\n by a carrier to a group contract holder to cover all or a portion of the cost\n of enrollees (or their eligible dependents) receiving covered health care\n items or services. Group health benefit plan does not mean (i) health care\n plans, contracts or policies issued in the individual market; (ii) coverages\n issued pursuant to Title XVIII of the Social Security Act, 42 U.S.C. §\n 1395 et seq. (Medicare), Title XIX of the Social Security Act, 42 U.S.C.\n § 1396 et seq. (Medicaid) or Title XXI of the Social Security Act, 42\n U.S.C. § 1397aa et seq. (CHIP), 5 U.S.C. § 8901 et seq. (federal\n employees), 10 U.S.C. § 1071 et seq. (TRICARE) or Chapter 28 (§\n 2.2-2800 et seq.) of Title 2.2 (state employees); (iii) accident only, credit\n or disability insurance, or long-term care insurance, plans providing only\n limited health care services under § 38.2-4300 (unless offered by\n endorsement or rider to a group health benefit plan), TRICARE supplement,\n Medicare supplement, or workers’ compensation coverages; or (iv) an\n employee welfare benefit plan (as defined in section 3 (1) of the Employee\n Retirement Income Security Act of 1974, 29 U.S.C. § 1002 (1)), which is\n self-insured or self-funded.\n \t\t\t\t“Group specific administrative cost” means the direct\n administrative cost incurred by a carrier related to the offer of the\n point-of-service benefit to a particular group contract holder.\n \t\t\t\t“Health care plan” shall have the meaning set forth in §\n 38.2-4300.\n \t\t\t\t“Person” means any individual, corporation, trust,\n association, partnership, limited liability company, organization or other\n entity.\n \t\t\t\t“Point-of-service benefit” means a health maintenance\n organization’s delivery system or covered benefits, or the delivery\n system or covered benefits of another carrier under contract or arrangement\n with the health maintenance organization, which permit an enrollee (and\n eligible dependents) to receive covered items and services outside of the\n provider panel, including optometrists and clinical psychologists, of the\n health maintenance organization under the terms and conditions of the group\n contract holder’s group health benefit plan with the health maintenance\n organization or with another carrier arranged by or under contract with the\n health maintenance organization and which otherwise complies with this\n section. Without limiting the foregoing, the benefits offered or arranged by a\n carrier’s indemnity group accident and sickness policy under Chapter 34\n (§ 38.2-3400 et seq.) of this title, health services plan under Chapter\n 42 (§ 38.2-4200 et seq.) of this title or preferred provider organization\n plan under Chapter 34 (§ 38.2-3400 et seq.) or 42 (§ 38.2-4200 et\n seq.) of this title which permit an enrollee (and eligible dependents) to\n receive the full range of covered items and services outside of a provider\n panel, including optometrists and clinical psychologists, and which are\n otherwise in compliance with applicable law and this section shall constitute\n a point-of-service benefit.\n \t\t\t\t“Preferred provider organization plan” means a health benefit\n program offered pursuant to a preferred provider policy or contract under\n § 38.2-3407 or covered services offered under a preferred provider\n subscription contract under § 38.2-4209.\n \t\t\t\t“Provider” means any physician, hospital or other person,\n including optometrists and clinical psychologists, that is licensed or\n otherwise authorized in the Commonwealth to deliver or furnish health care\n items or services.\n \t\t\t\t“Provider panel” means the participating providers or referral\n providers who have a contract, agreement or arrangement with a health\n maintenance organization or other carrier, either directly or through an\n intermediary, and who have agreed to provide items or services to enrollees of\n the health maintenance organization or other carrier.\n\nB. To the maximum extent permitted by applicable law, every health care plan\noffered or proposed to be offered in the large group market in the Commonwealth\nby a health maintenance organization licensed under this title to a group\ncontract holder shall provide or include, or the health maintenance organization\nshall arrange for or contract with another carrier to provide or include, a\npoint-of-service benefit to be provided or offered in conjunction with the\nhealth maintenance organization’s health care plan as an additional\nbenefit for the enrollee, at the enrollee’s option, individually to accept\nor reject. In connection with its group enrollment application, every health\nmaintenance organization shall, at no additional cost to the group contract\nholder, make available or arrange with a carrier to make available to the\nprospective group contract holder and to all prospective enrollees, in advance\nof initial enrollment and in advance of each reenrollment, a notice in form and\nsubstance acceptable to the Commission which accurately and completely explains\nto the group contract holder and prospective enrollee the point-of-service\nbenefit and permits each enrollee to make his or her election. The form of\nnotice provided in connection with any reenrollment may be the same as the\napproved form of notice used in connection with initial enrollment and may be\nmade available to the group contract holder and prospective enrollee by the\ncarrier in any reasonable manner.\n\nC. To the extent permitted under applicable law, a health maintenance\norganization providing or arranging, or contracting with another carrier to\nprovide, the point-of-service benefit under this section and a carrier providing\nthe point-of-service benefit required under this section under arrangement or\ncontract with a health maintenance organization:\n\n 1. May not impose, or permit to be imposed, a minimum enrollee participation\n level on the point-of-service benefit alone;\n\n 2. May not refuse to reimburse a provider of the type listed or referred to in\n § 38.2-3408 or 38.2-4221 for items or services provided under the\n point-of-service benefit required under this section solely on the basis of\n the license or certification of the provider to provide such items or services\n if the carrier otherwise covers the items or services provided and the\n provision of the items or services is within the provider’s lawful scope\n of practice or authority; and\n\n 3. Shall rate and underwrite all prospective enrollees of the group contract\n holder as a single group prior to any enrollee electing to accept or reject\n the point-of-service benefit.\n\nD. The premium imposed by a carrier with respect to enrollees who select the\npoint-of-service benefit may be different from that imposed by the health\nmaintenance organization with respect to enrollees who do not select the\npoint-of-service benefit. Unless a group contract holder determines otherwise,\nany enrollee who accepts the point-of-service benefit shall be responsible for\nthe payment of any premium over the amount of the premium applicable to an\nenrollee who selects the coverage offered by the health maintenance organization\nwithout the point-of-service benefit and for any identifiable group specific\nadministrative cost incurred directly by the carrier or any administrative cost\nincurred by the group contract holder in offering the point-of-service benefit\nto the enrollee. If a carrier offers the point-of-service benefit to a group\ncontract holder where no enrollees of the group contract holder elect to accept\nthe point-of-service benefit and incurs an identifiable group specific\nadministrative cost directly as a consequence of the offering to that group\ncontract holder, the carrier may reflect that group specific administrative cost\nin the premium charged to other enrollees selecting the point-of-service benefit\nunder this section. Unless the group contract holder otherwise directs or\nauthorizes the carrier in writing, the carrier shall make reasonable efforts to\nensure that no portion of the cost of offering or arranging the point-of-service\nbenefit shall be reflected in the premium charged by the carrier to the group\ncontract holder for a group health benefit plan without the point-of-service\nbenefit. Any premium differential and any group specific administrative cost\nimposed by a carrier relating to the cost of offering or arranging the\npoint-of-service benefit must be actuarially sound and supported by a sworn\ncertification of an officer of each carrier offering or arranging the\npoint-of-service benefit filed with the Commission certifying that the premiums\nare based on sound actuarial principles and otherwise comply with this section.\nThe certifications shall be in a form, and shall be accompanied by such\nsupporting information in a form acceptable to the Commission.\n\nE. Any carrier may impose different co-insurance, co-payments, deductibles and\nother cost-sharing arrangements for the point-of-service benefit required under\nthis section based on whether or not the item or service is provided through the\nprovider panel of the health maintenance organization; provided that, except to\nthe extent otherwise prohibited by applicable law, any such cost-sharing\narrangement:\n\n 1. Shall not impose on the enrollee (or his or her eligible dependents, as\n appropriate) any co-insurance percentage obligation which is payable by the\n enrollee which exceeds the greater of: (i) thirty percent of the\n carrier’s allowable charge for the items or services provided by the\n provider under the point-of-service benefit or (ii) the co-insurance amount\n which would have been required had the covered items or services been received\n through the provider panel;\n\n 2. Shall not impose on an enrollee (or his or her eligible dependents, as\n appropriate) a co-payment or deductible which exceeds the greatest co-payment\n or deductible, respectively, imposed by the carrier or its affiliate under one\n or more other group health benefit plans providing a point-of-service benefit\n which are currently offered and actively marketed by the carrier or its\n affiliate in the Commonwealth and are subject to regulation under this title;\n and\n\n 3. Shall not result in annual aggregate cost-sharing payments to the enrollee\n (or his or her eligible dependents, as appropriate) which exceed the greatest\n annual aggregate cost-sharing payments which would apply had the covered items\n or services been received under another group health benefit plan providing a\n point-of-service benefit which is currently offered and actively marketed by\n the carrier or its affiliate in the Commonwealth and which is subject to\n regulation under this title.\n\nF. Except to the extent otherwise required under applicable law, any carrier\nproviding the point-of-service benefit required under this section may not\nutilize an allowable charge or basis for determining the amount to be reimbursed\nor paid to any provider from which covered items or services are received under\nthe point-of-service benefit which is not at least as favorable to the provider\nas that used:\n\n 1. By the carrier or its affiliate in calculating the reimbursement or payment\n to be made to similarly situated providers under another group health benefit\n plan providing a point-of-service benefit which is subject to regulation under\n this title and which is currently offered or arranged by the carrier or its\n affiliate and actively marketed in the Commonwealth, if the carrier or its\n affiliate offers or arranges another such group health benefit plan providing\n a point-of-service benefit in the Commonwealth; or\n\n 2. By the health maintenance organization in calculating the reimbursement or\n payment to be made to similarly situated providers on its provider panel.\n\nG. Except as expressly permitted in this section or required under applicable\nlaw, no carrier shall impose on any person receiving or providing health care\nitems or services under the point-of-service benefit any condition or penalty\ndesigned to discourage the enrollee’s selection or use of the\npoint-of-service benefit, which is not otherwise similarly imposed either: (i)\non enrollees in another group health benefit plan, if any, currently offered or\narranged and actively marketed by the carrier or its affiliate in the\nCommonwealth or (ii) on enrollees who receive the covered items or services from\nthe health maintenance organization’s provider panel. Nothing in this\nsection shall preclude a carrier offering or arranging a point-of-service\nbenefit from imposing on enrollees selecting the point-of-service benefit\nreasonable utilization review, preadmission certification or precertification\nrequirements or other utilization or cost control measures which are similarly\nimposed on enrollees participating in one or more other group health benefit\nplans which are subject to regulation under this title and are currently offered\nand actively marketed by the carrier or its affiliates in the Commonwealth or\nwhich are otherwise required under applicable law.\n\nH. Except as expressly otherwise permitted in this section or as otherwise\nrequired under applicable law, the scope of the health care items and services\nwhich are covered under the point-of-service benefit required under this section\nshall at least include the same health care items and services which would be\ncovered if provided under the health maintenance organization’s health\ncare plan, including without limitation any items or services covered under a\nrider or endorsement to the applicable health care plan. Carriers shall be\nrequired to disclose prominently in all group health benefit plans and in all\nmarketing materials utilized with respect to such group health benefit plans\nthat the scope of the benefits provided under the point-of-service option are at\nleast as great as those provided through the HMO’s health care plan for\nthat group. Filings of point-of-service benefits submitted to the Commission\nshall be accompanied by a certification signed by an officer of the filing\ncarrier certifying that the scope of the point-of-service benefits includes at a\nminimum the same health care items and services as are provided under the\nHMO’s group health care plan for that group.\n\nI. Nothing in this section shall prohibit a health maintenance organization from\noffering or arranging the point-of-service benefit (i) as a separate group\nhealth benefit plan or under a different name than the health maintenance\norganization’s group health benefit plan which does not contain the\npoint-of-service benefit or (ii) from managing a group health benefit plan under\nwhich the point-of-service benefit is offered in a manner which separates or\notherwise differentiates it from the group health benefit plan which does not\ncontain the point-of-service benefit.\n\nJ. Notwithstanding anything in this section to the contrary, to the extent\npermitted under applicable law, no health maintenance organization shall be\nrequired to offer or arrange a point-of-service benefit under this section with\nrespect to any group health benefit plan offered to a group contract holder if\nthe health maintenance organization determines in good faith that the group\ncontract holder will be concurrently offering another group health benefit plan\nor a self-insured or self-funded health benefit plan which allows the enrollees\nto access care from their provider of choice whether or not the provider is a\nmember of the health maintenance organization’s panel.\n\nK. This section shall apply only to group health benefit plans issued in the\nCommonwealth in the commercial large group market by carriers regulated by this\ntitle and shall not apply to (i) health care plans, contracts or policies issued\nin the individual or small group market; (ii) coverages issued pursuant to Title\nXVIII of the Social Security Act, 42 U.S.C. § 1395 et seq. (Medicare),\nTitle XIX of the Social Security Act, 42 U.S.C. § 1396 et seq. (Medicaid)\nor Title XXI of the Social Security Act, 42 U.S.C. § 1397aa et seq. (CHIP),\n5 U.S.C. § 8901 et seq. (federal employees), 10 U.S.C. § 1071 et seq.\n(TRICARE) or Chapter 28 (§ 2.2-2800 et seq.) of Title 2.2 (state\nemployees); (iii) accident only, credit or disability insurance, or long-term\ncare insurance, plans providing only limited health care services under §\n38.2-4300 (unless offered by endorsement or rider to a group health benefit\nplan), TRICARE supplement, Medicare supplement, or workers’ compensation\ncoverages; (iv) an employee welfare benefit plan (as defined in section 3 (1) of\nthe Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002 (1)),\nwhich is self-insured or self-funded; or (v) a qualified health plan when the\nplan is offered in the Commonwealth by a health carrier through a health benefit\nexchange established under § 1311 of the federal Patient Protection and\nAffordable Care Act (P.L. 111-148).\n\nL. Nothing in this section shall operate to limit any rights or obligations\narising under § 38.2-3407, 38.2-3407.7, 38.2-3407.10, 38.2-3407.11,\n38.2-4209, 38.2-4209.1, 38.2-4312, or 38.2-4312.1.\n\nHISTORY: 1998, c. 908; 2013, c. 751; 2014, cc. 157, 417, 814; 2015, c. 709.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}