PRIOR PRINTER'S NOS. 2138, 2743 PRINTER'S NO. 3078
No. 1762 Session of 1977
INTRODUCED BY MESSRS. IRVIS, JOHNSON, MRS. KELLY, MESSRS.
ZEARFOSS, SCHMITT, MRS. GILLETTE, MESSRS. McLANE, DUMAS,
JONES, BORSKI, GARZIA, F. TAYLOR, COWELL, REED, COHEN, HASAY,
BROWN, SWEET, RIEGER, CIANCIULLI, GLEESON AND MELUSKEY,
OCTOBER 12, 1977
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
APRIL 18, 1978
AN ACT
1 Amending Title 40 (Insurance) of the Pennsylvania Consolidated
2 Statutes, changing certain requirements for incorporators and
3 directors of general medical service corporations and further
4 providing for the election of directors of such corporations.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Section 6328 of Title 40, act of November 25,
8 1970 (P.L.707, No.230), known as the Pennsylvania Consolidated
9 Statutes, added November 15, 1972 (P.L.1063, No.271), is amended
10 to read:
11 § 6328. Board of directors.
12 (a) Professional health service corporations generally.--The
13 business of every professional health service corporation,
14 except a general medical service corporation, shall be managed
15 by a board of directors of at least nine persons, all of whom
16 shall be residents of this Commonwealth [and citizens of the
17 United States] and a majority of whom shall at all times be:
1 (1) Doctors of dental surgery, in the case of a dental
2 service corporation.
3 (2) Doctors of optometry, in the case of an optometric
4 service corporation.
5 [(3) Doctors of medicine, in the case of a]
6 (b) General medical service corporation.--(1) A general
7 medical service corporation shall be managed by a board of
8 not less than 21, nor more than 36 members, all of whom shall
9 be residents of this Commonwealth, and at no time shall the
10 board be less than 50% subscribers who have coverage under a
11 contract issued by the corporation, and who are generally
12 representative of broad segments of subscribers covered under
13 contracts issued by such corporation, whose background and
14 experience indicate that they are qualified to act in the
15 interests of such subscribers and the corporation and who or <--
16 whose spouse does not derive substantial income from the
17 delivery or administration of health care.
18 (2) The bylaws of every general medical service
19 corporation shall provide appropriate procedures for the
20 nomination and election or appointment of the directors of
21 the corporation and the nomination and election or
22 appointment of committees of the board in such a manner that
23 the interests of the subscribers of the corporation will be
24 justly and reasonably represented.
25 (3) All directors of the corporation shall be members of
26 the corporation.
27 (4) A health service doctor, who provides professional
28 health services for the corporation's subscribers, may be a
29 director but in no event shall be counted among the directors
30 who represent subscribers.
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1 (5) Every general medical service corporation shall
2 within six months of the effective date of this act submit
3 for review by the Insurance Commissioner and the Secretary of
4 Health bylaws meeting the standards of this section. Whenever
5 a general medical service corporation changes its bylaws,
6 said change shall be submitted within 30 days to the
7 commissioner and secretary for their review to determine
8 whether such changes meet statutory standards of this
9 section.
10 Section 2. This act shall take effect immediately.
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