                                 CODE OF VIRGINIA

POWERS OF INSURERS AND HEALTH SERVICES PLANS (§ 38.2-4314)

A. An insurer or a health services plan licensed in this Commonwealth may,
either directly or through a subsidiary or affiliate, organize and operate a
health maintenance organization under the provisions of this chapter.
Notwithstanding any other law that may be inconsistent with this section, any
two or more licensed insurers, health services plans, or their subsidiaries or
affiliates, may jointly organize and operate a health maintenance organization.

B. An insurer or a health services plan may contract with a health maintenance
organization to provide insurance or similar protection against the cost of care
provided through health maintenance organizations and to provide coverage in the
event of the failure of the health maintenance organization to meet its
obligations. The enrollees of a health maintenance organization constitute a
permissible group for purposes of laws applicable to insurers and health
services plans. Under the contracts the insurer or health services plans may
make benefit payments to health maintenance organizations for health care
services rendered by providers under the health care plan.

HISTORY: 1980, c. 720, § 38.1-878; 1986, c. 562.