Esta ley enmienda el Código de Seguros de Puerto Rico para aumentar el depósito requerido a las organizaciones de servicios de salud de $300,000 a $600,000. El propósito es proteger a los suscriptores, proveedores y acreedores en caso de insolvencia de dichas organizaciones.
(Approved on October 28, 2002)
To amend Section 19.140 of Act No. 77 of June 19, 1957, as amended, better known as the "Insurance Code of Puerto Rico," to increase the amount that each health service organization must deposit, with the Insurance Commissioner from $300,000 to $600,000 to guarantee compliance with their obligations to the subscriber, creditors and providers.
The Insurance Commissioner of the Commonwealth of Puerto Rico recently revoked the Health Plan Authority Certificate of the Puerto Rico Teachers' Federation, an organization that became insolvent, after accumulating many thousands dollars in debts of in with its main service providers.
The state of insolvency caused thousands of Health plan subscribers to remain without coverage for a period of time while they availed themselves of another health plan.
Section 19.140 of Act No. 77, of June 19, 1957, as amended, provides that Health Services organizations, when authorized, must deposit the amount of $300,000 with the Commissioner as protection against the future insolvency of said entities.
The last amendment to the Act in relation to the amount of the bond was made in 1987, through Act No. 88, of July 2, 1987, establishing the same in the amount of $300,000.
The report of the Health and Social Welfare and Civil Judiciary Committees of May 5, 1987, in House Bill No. 1059, which became Act 88 of July 1987, refers to the statement of the Insurance Commissioner, mentioning that the initial deposit a Health Services organization must maintain, to prevent entities with little capital from entering into a business, the eventualities of which, require an adequate operating capital for the rendering of services.
Over fourteen years have gone by since the last amendment to Section 19.140 and, in view of the problems confronted by several Health Services organizations, said Section must be amended to increase protection against insolvency and to guarantee that these entities comply with their obligations towards subscribers, providers and creditors.
Section 1.- Section 19.140 of Act No. 77 of June 19, 1957, as amended, is hereby amended to read as follows: "Section 19.140.- Protection Against Insolvency. As a guarantee of compliance with the obligations towards subscribers, providers and creditors; each health services organization shall deposit the amount of six hundred thousand $($ 600,000)$ dollars in eligible assets with the Commissioner, as provided by Section 8.020."
Section 2.- This Act shall take effect immediately after its approval and its provisions shall be subject to the provisions set forth in Section 19.141 of the Insurance Code.
I hereby certify to the Secretary of State that the following Act No. 247 (H.B. 1224) of the $4^{ ext {th }}$ Session of the $14^{ ext {th }}$ Legislature of Puerto Rico:
AN ACT to amend Section 19.140 of Act No. 77 of June 19, 1957, as amended, better known as the "Insurance Code of Puerto Rico," to increase the amount that each health service organization must deposit, with the Insurance Commissioner from $300,000 to $600,000 to guarantee compliance with their obligations to the subscriber, creditors and providers, has been translated from Spanish to English and that the English version is correct.
In San Juan, Puerto Rico, today $6^{ ext {th }}$ of August of 2004.
Elba Rosa Rodríguez-Fuentes Director