PRINTER'S NO. 2304
No. 1881 Session of 1977
INTRODUCED BY COHEN, IRVIS, KOWALYSHYN, ZEARFOSS, HASAY,
SCHMITT, RHODES, CAPUTO, GAMBLE, GILLETTE, LAUGHLIN, PRATT,
JOHNSON, OLIVER, KELLY, GIAMMARCO, WHITE, SCANLON, WILLIAMS,
REED, BROWN, HARPER, GATSKI, F. TAYLOR, GARZIA, MACKOWSKI,
ZORD, TENAGLIO, HOPKINS, MOWERY, MILLIRON, LIVENGOOD AND
SWEET, NOVEMBER 16, 1977
REFERRED TO COMMITTEE ON INSURANCE, NOVEMBER 16, 1977
AN ACT
1 Amending Title 40 (Insurance) of the Pennsylvania Consolidated
2 Statutes, providing for the membership of the board of
3 directors of hospital plan corporations.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Title 40, act of November 25, 1970 (P.L.707,
7 No.230), known as the Pennsylvania Consolidated Statutes is
8 amended by adding a section to read:
9 § 6128. Board of directors.
10 (a) Composition of board.--The business of every hospital
11 plan corporation shall be managed by a board of directors of not
12 less than 21, nor more than 30 members, all of whom shall be
13 residents of this Commonwealth, and a majority of whom shall at
14 all times be subscribers who have coverage under a contract
15 issued by the corporation, and who are generally representative
16 of broad segments of subscribers covered under contracts issued
1 by such corporation, whose background and experience indicate
2 that they are qualified to act in the interests of such
3 subscribers, and who or whose spouse does not derive substantial
4 income from the delivery or administration of health care.
5 (b) Bylaws.--The bylaws of every hospital plan corporation
6 shall provide appropriate procedures for the nomination and
7 election or appointment of the directors of the corporation and
8 the election or appointment of committees of the board in such a
9 manner that the interests of the subscribers of the corporation
10 will be justly and reasonably represented.
11 (c) Changes in bylaws.--Whenever a general medical service
12 corporation changes its bylaws, said change shall be submitted
13 within 30 days to the Departments of Insurance and Health for
14 their approval. The departments shall determine within 60 days
15 whether the change to such bylaws meets the statutory standards.
16 In the event of a disapproval of a change to the bylaws, the
17 change shall not be incorporated into the bylaws.
18 (d) Judicial review.--The determination of the departments,
19 including the issuance of revised bylaws, shall be subject to
20 judicial review in the manner provided by law.
21 Section 2. Every hospital plan corporation shall within six
22 months of the effective date of this act submit for approval by
23 the Departments of Insurance and Health bylaws meeting the
24 standards of this section. The departments shall determine
25 within 60 days whether the bylaws meet the statutory standards
26 and shall promptly notify the corporation of its determination.
27 In the event of a disapproval of the bylaws, the corporation
28 shall submit to the departments within 60 days of disapproval
29 acceptable revised bylaws. If a corporation fails to submit
30 acceptable revised bylaws, the departments shall jointly
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1 promulgate within an additional 60 days, bylaws for the
2 corporation which meet the standards of this section.
3 Section 3. This act shall take effect immediately.
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