By Charles Buck and Christopher M. Jedrey
On November 26, 2003, the governor of Massachusetts signed into law Chapter 141 of the Acts of 2003, which makes substantial changes to the Massachusetts HMO statute—Chapter 176G of the Massachusetts General Laws. The new law became effective January 1, 2004. The principal changes are summarized below. (The section numbers used below refer to sections of Chapter 176G which codify the new law.)
Section 10: Financial Reporting
Under the new law, the annual financial report of an HMO must be maintained and prepared in accordance with statutory accounting practices and procedures and filed within 60 days of the close of the fiscal year. The previous deadline was 120 days. The report must include financial statements, using the latest forms approved by the National Association of Insurance Commissioners. Section 10 has also been amended to increase the interval between mandatory examinations by the Division of Insurance of the affairs of an HMO
