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Cal. Health & Safety Code § 1378

Operation and Renewal Requirements and Procedures

Known as the Knox-Keene Health Care Service Plan Act

The act spans §§ 1340–1399 (617 sections).

Added by Stats. 1975, Ch. 941.

No plan shall expend for administrative costs in any fiscal year an excessive amount of the aggregate dues, fees and other periodic payments received by the plan for providing health care services to its subscribers or enrollees. The term “administrative costs,” as used herein, includes costs incurred in connection with the solicitation of subscribers or enrollees for the plan.

This section shall not preclude a plan from expending additional sums of money for administrative costs provided such money is not derived from revenue obtained from subscribers or enrollees of the plan.

Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.