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

AHIP AHM-520 Question Answer

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

Having an initial net worth of at least $5 million

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

Using a prospective method to estimate future risk

Obtaining a certificate of authority (COA) before beginning operations

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