1. (a) Purpose. The purpose of this subchapter is to set forth the requirements that must be met by any HMO that delegates any function as described in Texas Insurance Code Art. 20A.18C. These requirements are designed to ensure that a delegating HMO:

   1. (1) identifies all responsibilities relating to the function being delegated;
   2. (2) creates an agreement that enables the HMO and department to monitor both the delegated entity's financial solvency and performance or subsequent delegation of all delegated functions; and
   3. (3) retains ultimate responsibility for ensuring that all delegated functions are performed in accordance with applicable statutes and rules.
2. (b) Severability. Where any terms or sections of this subchapter are determined by a court of competent jurisdiction to be inconsistent with the Act, as identified by this subchapter, the Act will apply and the remaining terms and provisions of this subchapter shall continue in effect.
3. (c) Applicability to Group Model HMO. This subchapter does not apply to a group model HMO, as defined by Texas Insurance Code Art. 20A.06A.

Source Note:The provisions of this §11.2601 adopted to be effective October 13, 2002, 27 TexReg 9585.