Ohio Gov. George Voinovich has signed into law the Managed Care Uniform Licensure Act, which gives the state insurance department regulatory authority over provider groups such as physician-hospital organizations that take risk.
Under the law, which became effective earlier this month, managed-care organizations are known as health insuring corporations. HICs are defined as corporations that pay, provide, reimburse, deliver, arrange for or otherwise make available healthcare services through an open or closed panel of physicians.
The net worth requirements for HICs vary from $1.2 million to $1.7 million under the law. In all cases, the solvency standards are based on the types of services provided.