For purposes of this chapter, unless the context otherwise requires:

Terms Used In North Dakota Code 26.1-53.1-01

  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Individual: means a human being. See North Dakota Code 1-01-49
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Organization: includes a foreign or domestic association, business trust, corporation, enterprise, estate, joint venture, limited liability company, limited liability partnership, limited partnership, partnership, trust, or any legal or commercial entity. See North Dakota Code 1-01-49
  • Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See North Dakota Code 1-01-49

1.    “Affiliate” means a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified.

2.    “Ancillary services” includes audiology, dental, vision, mental health, substance abuse, chiropractic, and podiatry services.

3.    “Control”, “controlled by”, or “under control with” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person. Control is presumed to exist if any person, directly or indirectly, owns, controls, holds with the power to vote, or holds proxies representing ten percent or more of the voting securities of any other person. This presumption may be rebutted by a showing made in the manner provided by section 26.1-10-04, that control does not exist in fact. The commissioner may determine, after furnishing all persons in interest notice and opportunity to be heard and making specific findings of fact to support such determination, that control exists in fact, notwithstanding the absence of a presumption to that effect.

4.    “Direct primary care” means any private contract between a provider and consumer for services associated with that provider.

5.    “Discount plan” means a business arrangement or contract in which a person, in exchange for fees, dues, charges, or other consideration, offers members the access to providers of medical or ancillary services and the right to receive discounts on medical or ancillary services provided under the discount plan from those providers. The term includes a discount prescription drug plan. The term does not include:

a.    A plan that does not charge a membership, payment, dues, other consideration, or other fee to use the discount plan; b.    Any product otherwise regulated under title 26.1; c.    Direct primary care; d.    A patient access program; or

e.    A Medicare prescription drug plan.

6.    “Discount plan organization” means an entity that, in exchange for fees, dues, charges, or other consideration, provides access for discount plan members to providers of medical or ancillary services and the right to receive medical or specialty services from those providers at a discount. It is the organization that contracts with providers, provider networks, or other discount plan organizations to offer access to medical or specialty services at a discount and determines the charge to discount plan members.

7.    “Discount prescription drug plan” means a business arrangement or contract in which a person, in exchange for fees, dues, charges, or other consideration, provides members the access to providers of pharmacy services and the right to receive discounts on pharmacy services provided under the discount prescription drug plan from those providers.

8.    “Facility” means an institution providing medical or ancillary services or a health care setting. The term includes:

a.    A hospital or other licensed inpatient center; b.    An ambulatory surgical or treatment center; c.    A skilled nursing center; d.    A residential treatment center; e.    A rehabilitation center; and

f.    A diagnostic, laboratory, or imaging center.

9. “Health care professional” means a physician, pharmacist, or other health care practitioner who is licensed, accredited, or certified to perform specified medical or ancillary services within the scope of the professional’s license, accreditation, certification, or other appropriate authority consistent with state law.

10.    “Health insurer” means an entity subject to the insurance laws and regulations of this state, or subject to the jurisdiction of the commissioner, that contracts or offers to contract to provide, deliver, arrange for, pay for, or reimburse any of the costs of health care services, including a sickness and accident insurance company, a health maintenance organization, a nonprofit hospital and health service corporation, or any other entity providing a plan of health insurance, health benefits, or medical or ancillary services.

11.    “Marketer” means a person that markets, promotes, sells, or distributes a discount plan, including a private label entity that places the entity’s name on and markets or distributes a discount plan pursuant to a marketing agreement with a discount plan organization.

12.    “Medical services” means any maintenance care of, or preventive care for, the human body, or care, service, or treatment of an illness or dysfunction of, or injury to, the human body. The term includes physician care, inpatient care, hospital surgical services, emergency services, ambulance services, dental care services, vision care services, mental health services, substance abuse services, chiropractic services, podiatric services, laboratory services, medical equipment and supplies, pharmacy services, and ancillary services.

13.    “Medicare prescription drug plan” means a plan that provides Medicare part D prescription drug benefits in accordance with the requirements of the federal Medicare Prescription Drug, Improvement, and Modernization Act of 2003 [Pub. L. 108-173].

14.    “Member” means any individual who pays fees, dues, charges, or other consideration for the right to receive the benefits of a discount plan or discount prescription drug plan.

15.    “Patient access program” means a voluntary program sponsored by a pharmaceutical manufacturer, or a consortium of pharmaceutical manufacturers, which provide free or discounted health care products directly to low-income or uninsured individuals either through a discount card or direct shipment.

16.    “Person” means an individual, a corporation, a partnership, an association, a joint venture, a joint stock company, a trust, an unincorporated organization, any similar entity, or any combination of the foregoing.

17.    “Pharmacy services” includes pharmaceutical supplies and prescription drugs.

18.    “Provider” means any health care professional or facility that has contracted, directly or indirectly, with a discount plan organization to provide medical or ancillary services to members.

19.    “Provider network” means an entity that negotiates, directly or indirectly, with a discount plan organization on behalf of more than one provider to provide medical or ancillary services to members.