RSA 420-M:5 · Preparation of a Business Plan and Other Required Documents

420-M:5 Preparation of a Business Plan and Other Required Documents. –

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I.

The application for a purchasing alliance shall include a business plan containing the following information:

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(a)

A detailed, written plan of operations explaining how the applicant intends to fulfill the purposes and requirements of this chapter;

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(b)

The specific steps that the alliance will use to increase affordability, efficiency, and fairness of health insurance coverage;

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(c)

The specific steps that the alliance will use to allow employers and their employees to obtain better value in purchasing health insurance;

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(d)

The scope of services to be offered and the resources and expertise to be used to implement and administer those services;

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(e)

A provision requiring that any coverage procured by the alliance shall require that the members of the alliance be notified directly by the insurer of cancellation due to nonpayment of premium;

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(f)

The personal biographical information and descriptions of the officers of the alliance;

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(g)

A written statement demonstrating that those involved in the operation of the alliance have the expertise and experience to effectively and professionally represent employers and their eligible employees; and

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(h)

An affirmative demonstration that financial controls are in place as a condition of licensure.

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II.

In addition to the business plan, each applicant shall file with the commissioner the following information or documents:

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(a)

A plan that affirmatively demonstrates that the alliance has the technical expertise and capacity to serve a significant group of employers and their eligible employees;

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(b)

A plan that demonstrates that the alliance has the technical capacity to provide service quality;

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(c)

The applicant's articles of incorporation, bylaws, or other formation and business operation documents;

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(d)

A list of officers and directors of the applicant and the contract administrator, if one is employed, and personal biographical information or firm descriptions for each;

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(e)

Evidence of security and prudence in the accounting, deposit, collection, handling, and transfer of moneys; and

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(f)

A description of the service area in which the alliance will be marketing and offering services.

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III.

Material changes in the operations or the business plan shall not take effect without approval from the commissioner.

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IV.

The commissioner shall conduct financial and performance audits or examinations of an alliance on a regular basis. The commissioner shall require audited financial statements from an alliance. The costs of examinations or audits shall be paid by the alliance.

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V.

A purchasing alliance shall submit an annual report no later than April 1 of each year that includes quarterly financial statements that show:

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(a)

The alliance is operating in a sound financial fashion;

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(b)

The alliance is not a risk-bearing entity; and

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(c)

The alliance is utilizing sound financial controls and money management. Source. 2010, 346:1, eff. July 20, 2010.

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