(a) The board shall, pursuant to the Administrative Procedure Act, adopt all necessary rules and regulations to carry out the provisions of this part including, but not limited to, any of the following:
(1) Regulations establishing the following:
(A) The scope and content of a basic health benefit plan.
(B) Reasonable minimum standards for health benefit plans.
(C) The time, manner, method, and procedures for determining whether approval of a health benefit plan should be withdrawn.
(2) Regulations pertaining to any other matters that the board may be expressly authorized or required to provide for by rule or regulation by the provisions of this part.
(b) In adopting rules and regulations, the board shall be guided by the needs and welfare of individual employees, particular classes of employees, the state and contracting agencies, as well as prevailing practices in the field of medical and hospital care.