Insolvent health maintenance organization; administrative supervision, rehabilitation or liquidation; priority of claims
Section 20. Any administrative supervision, rehabilitation or liquidation of a health maintenance organization shall be deemed to be the administrative supervision, rehabilitation or liquidation of an insurance company and shall be instituted on the grounds contained in and conducted pursuant to sections 6, 46, 46A, 178, 179, 180 and 180A to 180L, inclusive, of chapter 175, and sections 20A and 29 of chapter 176G, except as provided in this section and may include, but not be limited to any ground identified in section 20A and in chapter 175J. Members shall have the same priority in the event of rehabilitation or liquidation as the law provides to policyholders of an insurer.
For the purpose of determining the priority of distribution of general assets, claims of members and members’ beneficiaries shall have the same priority as established by section 180F of chapter 175 for policyholders, beneficiaries and insureds of insurance companies. If a member is liable to any provider for services provided pursuant to and covered by the health maintenance organization, that liability shall have the status of a member in the distribution of general assets.
Any provider who is obligated by statute or agreement to hold members harmless from liability for services provided pursuant to and covered by a health maintenance contract shall have a priority of distribution of the general assets immediately following that of members as described in this section.