1. (a) Managed care organizations (MCO) must meet solvency standards established by the Texas Department of Insurance at 28 TAC Chapter 11, Subchapter S and by the department in its competitive procurement proposals.
2. (b) The state may share in profits realized by MCOs providing services on a risk basis at a rate determined by the department, as long as the profit-sharing arrangement complies with federal law and is contained in the contract between the MCO and the department.
3. (c) The department may establish incentive payment programs to encourage MCOs to meet or exceed the goals and objectives of the STAR Program established by the department through its contract.

Source Note:The provisions of this §353.419 adopted to be effective December 18, 1996, 21 TexReg 11822; transferred effective September 1, 2001, as published in the Texas Register May 24, 2002, 27 TexReg 4561.