The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 8 V.S.A. § 4584)
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§ 4584. Application for permit
(a) A corporation incorporated under this chapter shall immediately, after filing its
articles of association, apply to the Commissioner of Financial Regulation for a permit
to operate. The application shall be made to the Commissioner upon forms to be prescribed
by the Commissioner. The application shall include a statement of the territory in
which the corporation proposed to operate, the services to be furnished and rendered
by it, and the rates to be charged for those services. The application shall be accompanied
by two copies of any contract for medical services that the corporation proposes to
make with its subscriber. Before issuing the permit, the Commissioner may make such
examination or investigation as the Commissioner deems necessary. The Commissioner
may refuse the permit if the Commissioner finds that the rates submitted are excessive,
inadequate, or unfairly discriminatory.
(b) A corporation organized under the provisions of this chapter shall not enter into
a contract with a subscriber to furnish medical services until it has obtained from
such Commissioner a permit to do so.
(c) In connection with a rate decision, the Green Mountain Care Board may also make reasonable
supplemental orders to the corporation and may attach reasonable conditions and limitations
to such orders as the Board finds, on the basis of competent and substantial evidence,
necessary to ensure that benefits and services are provided at minimum cost under
efficient and economical management of the corporation. The Commissioner and, except
as otherwise provided by 18 V.S.A. §§ 9375 and 9376, the Green Mountain Care Board, shall not set the rate of payment or reimbursement
made by the corporation to any physician, hospital, or other health care provider.
(d) The Commissioner shall permit rates for a medical service corporation designed to
enable the corporation to accumulate and maintain a reserve fund that shall from time
to time during the calendar year be increased in an amount equal to at least two percent
of the annual premium income of the corporation until the reserve fund is equal to
at least eight percent of the annual premium income of the corporation. However, if
the liabilities of the corporation exceed its assets, the Commissioner shall permit
the corporation to charge rates that enable the corporation to accumulate a reserve
fund at the rate of at least five percent of annual premium income of the corporation
until the corporation’s assets equal its liabilities. Nothing in this subchapter shall
require the Commissioner to permit a corporation to accumulate a reserve fund until
the law of the state of incorporation of that corporation is substantially similar
to this subsection with respect to the reserve fund. (Amended 1975, No. 69, § 4, eff. April 18, 1975; 1989, No. 225 (Adj. Sess.), § 25; 1995, No. 180 (Adj. Sess.), § 38; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2013, No. 79, § 5i, eff. Jan. 1, 2014; 2021, No. 105 (Adj. Sess.), § 214, eff. July 1, 2022.)