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The HMO Model Act sets certain requirements that an entity that wishes to operate as...

The HMO Model Act sets certain requirements that an entity that wishes to operate as an HMO must meet. These requirements include:

A.

Having an initial net worth of at least $5 million

B.

Maintaining a net worth equal to at least 5% of premium revenues for the first $150 million in premium revenue

C.

Using a prospective method to estimate future risk

D.

Obtaining a certificate of authority (COA) before beginning operations

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