{"data":{"id":"us-me/24-a-m.r.s.-4204-a","jurisdiction":"us-me","citation":"24-A M.R.S. §4204-A","heading":"Surplus requirements","body":"1.  Initial minimum surplus.  To qualify for authority as a health maintenance organization, an organization shall have an initial minimum surplus of $1,500,000.\n2.  Surplus maintained.  Except as provided in this section, every health maintenance organization must maintain a minimum surplus equal to the greater of:\nA.  One million dollars;\nB.  Two percent of the first $150,000,000 of annual premium revenues as reported in the most recent annual financial statement filed with the superintendent by the health maintenance organization, plus 1% of annual premium in excess of $150,000,000;\nC.  An amount equal to the sum of 3 months' uncovered health care expenditures as reported in the most recent annual financial statement filed with the superintendent by the health maintenance organization;\nD.  An amount equal to 8% of the health maintenance organization's annual health care expenditures, except those paid on a capitated basis, as reported in the most recent annual financial statement filed with the superintendent by the health maintenance organization; or\nE.  An amount equal to the company action level risk-based capital as defined in chapter 79.\n2-A.  Additional surplus.  A health maintenance organization that otherwise possesses surplus funds as required under this section shall also maintain surplus in a reasonable amount as determined by the superintendent in relation to indemnity risks assumed through the issuance of a point-of-service product, net of any applicable reinsurance.\n3.  Exceptions.  A health maintenance organization licensed before the effective date of this section must maintain a minimum surplus of:\nA.  Forty percent of the amount required by subsection 2 until December 31, 1991;\nB.  Sixty percent of the amount required by subsection 2 until December 31, 1992;\nC.  Eighty percent of the amount required by subsection 2 until December 31, 1993; and\nD.  One hundred percent of the amount required by subsection 2 until December 31, 1994.\n4.  Subordinated debt.  Any health maintenance organization that issues a subordinated debt instrument shall structure the debt as follows.\nA.  In determining surplus, debt may not be considered fully subordinated unless the subordination clause is in a form approved by the superintendent.  Any interest obligation relating to the repayment of any subordinated debt must be similarly subordinated.\nB.  Any debt incurred by a note that meets the requirements of this section, and is otherwise acceptable to the superintendent, may not be considered a liability and must be recorded as equity.","path":["TITLE 24-A: MAINE INSURANCE CODE","CHAPTER 56: HEALTH MAINTENANCE ORGANIZATIONS"],"source_url":"https://legislature.maine.gov/statutes/24-A/title24-Asec4204-A.html","current_through":"October 1, 2025","vintage":"","retrieved_at":"2026-09-04T15:12:33Z","sha256":"c9b24fd7369a97fc9dae4b1f4ad4b5316c14672c07729bbd8a2b7ff1a88754bd","source_id":"us-me","stale":false,"prev":"us-me/24-a-m.r.s.-4204","next":"us-me/24-a-m.r.s.-4205"},"notice":"GroundRules: Original legal text. Not legal advice."}