A health group cooperative:

(1) Shall arrange for group health insurance plan coverage for small employers who are members of the cooperative by contracting with small employer insurers who meet the criteria established by this part for coverage under group health insurance plans;
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Terms Used In Tennessee Code 56-7-2210

  • Contract: A legal written agreement that becomes binding when signed.
  • cooperative: means a private purchasing cooperative composed of small employers formed under this part. See Tennessee Code 56-7-2203
  • small employer: includes any person that, during the preceding year, employed no less than two (2) and no more than fifty (50) eligible employees and otherwise qualifies as a small employer pursuant to this subdivision (18). See Tennessee Code 56-7-2203
(2) Shall collect premiums to cover the cost of:

(A) Group health insurance plan coverage purchased through the cooperative; and
(B) The cooperative’s administrative expenses;
(3) May contract with agents to market coverage issued through the cooperative;
(4) Shall establish administrative and accounting procedures for the operation of the cooperative;
(5) May contract with a small employer insurer or third-party administrator to provide administrative services to the cooperative;
(6) Shall contract with a small employer insurer for the provision of services to small employers covered through the cooperative;
(7) Shall develop and implement a plan to maintain public awareness of the cooperative and publicize the eligibility requirements for, and the procedures for, enrollment in coverage through the cooperative;
(8) May negotiate the premiums paid by its members; and
(9) May obtain from the cooperative’s selected insurer other ancillary health insurance products and services for its members as are customarily offered in conjunction with group health insurance plans.
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