Sec. 11. (a) For good cause shown by a managed care organization due to financial or other difficulties, as determined by the office, the office is authorized to grant grace periods, of up to thirty (30) days, for the managed care organization's payment of an installment payment due under this chapter. (b) If a managed care organization that is liable for an assessment under this chapter fails to make an installment payment by the payment's due date, and no grace period has been granted to the managed care organization for the payment of the installment payment, the managed care organization shall pay a penalty of ten percent (10%) of the amount of the installment payment not paid, plus ten percent (10%) of the portion remaining unpaid on the last day of every thirty (30) day period thereafter. These penalty payments shall be deposited into the managed care assessment fee holding fund. (c) If a managed care organization that is liable for an assessment under this chapter is granted a grace period but fails to make its installment payment by the end of the grace period, the managed care organization shall pay a penalty of five percent (5%) of the amount of the installment payment not paid, plus five percent (5%) of the portion remaining unpaid on the last day of every thirty (30) day period thereafter. These penalty payments shall be deposited into the managed care assessment fee holding fund. (d) Notwithstanding subsections (b) and (c), with respect to a managed care organization that has a comprehensive risk contract with the office under IC 12-15 that fails to make an installment payment not later than sixty (60) days after the due date or, if applicable, not later than sixty (60) days after the end of a grace period, the office may additionally impose a contractual sanction allowed against the managed care organization, and may terminate the contract with the office. (e) Notwithstanding subsections (b) through (d), with respect to a managed care organization that fails to make an installment payment not later than sixty (60) days after the due date or, if applicable, not later than sixty (60) days after the end of a grace period, the department may suspend or revoke, after notice and hearing, the managed care organization's certificate of authority, license, or other authority to operate in Indiana.
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