Terms Used In Michigan Laws 500.3509

  • Director: means , unless the context clearly implies a different meaning, the director of the department. See Michigan Laws 500.102
  • Health maintenance organization: means a person that, among other things, does the following:
  (i) Delivers health services that are medically necessary to enrollees under the terms of its health maintenance contract, directly or through contracts with affiliated providers, in exchange for a fixed prepaid sum or per capita prepayment, without regard to the frequency, extent, or kind of health services. See Michigan Laws 500.3501
  • Service area: means a defined geographical area in which covered health services are generally available and readily accessible to enrollees and where health maintenance organizations may market their contracts. See Michigan Laws 500.3501
  •   (1) An application to the director for a certificate of authority must be on a form prescribed and provided by the director.
      (2) A certificate of authority issued to a health maintenance organization under this act is limited to the service area described in the application on which the certificate of authority was issued. Approved parts of a health maintenance organization’s service area are not required to be contiguous.
      (3) A health maintenance organization seeking to change the approved service area shall submit an application to change service area to the director and shall not change the service area until approval is received. The director shall specify the information required to be in the application under this subsection.