The NAIC adopted the HMO Model Act in order to provide a system of ongoing...

Regulates HMO operations in two critical areas: financial responsibility and healthcare delivery.

Requires each HMO to send state regulators an annual report describing the HMO's finances and operations.

Focuses on three key aspects of healthcare delivery: network adequacy, quality assurance, and grievance procedures.

Requires state insurance departments to conduct annual examinations of an HMO's operations, quality assurance programs, and provider networks.