# Mass. Gen. Laws ch. 176G, sec. 3: Organization; accounting; contracts > Massachusetts · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C176G_S3 ## Section - **Citation:** Mass. Gen. Laws ch. 176G, sec. 3 - **Heading:** Organization; accounting; contracts - **Jurisdiction:** Massachusetts - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** MA Code / Part I / Title XXII / Chapter 176G / Section 3 ## Text Section 3. A carrier or any two or more such companies, corporations, or their subsidiaries or affiliates may: (1) organize and operate a health maintenance organization as a line of business, division, department, subsidiary or affiliate under the provisions of this chapter provided that where such is organized as a line of business, division, department, subsidiary or affiliate, the operation of the health maintenance organization shall be separately accounted for, the income and expenses shall be allocated in accordance with statutory accounting practices and procedures prescribed or permitted by the commissioner, and the carrier or companies shall not utilize the income from such health maintenance organization for unrelated activities; 2) contract with a health maintenance organization to provide insurance, reinsurance, health services, reimbursement for health services or similar protection against the cost of care provided through the health maintenance organization; 3) contract with a health maintenance organization to provide coverage, health services or reimbursement for health services in the event of the failure of the health maintenance organization to meet its obligations under health maintenance contracts issued by it or a carrier; 4) contract with a health maintenance organization to provide administrative, underwriting, financing or other services relating to the provision of hospital, medical or other health services or reimbursement therefor; 5) contract with a health maintenance organization to enroll members on behalf of the health maintenance organization or to issue its own certificate of benefits for the covered health services provided by the health maintenance organization; and, 6) contract with a health maintenance organization for the joint administration of their business or for the writing and issue by the health maintenance organization, the carrier, or both jointly, of health maintenance contracts binding upon the carrier. Section 3. A carrier or any two or more such companies, corporations, or their subsidiaries or affiliates may: (1) organize and operate a health maintenance organization as a line of business, division, department, subsidiary or affiliate under the provisions of this chapter provided that where such is organized as a line of business, division, department, subsidiary or affiliate, the operation of the health maintenance organization shall be separately accounted for, the income and expenses shall be allocated in accordance with statutory accounting practices and procedures prescribed or permitted by the commissioner, and the carrier or companies shall not utilize the income from such health maintenance organization for unrelated activities; 2) contract with a health maintenance organization to provide insurance, reinsurance, health services, reimbursement for health services or similar protection against the cost of care provided through the health maintenance organization; 3) contract with a health maintenance organization to provide coverage, health services or reimbursement for health services in the event of the failure of the health maintenance organization to meet its obligations under health maintenance contracts issued by it or a carrier; 4) contract with a health maintenance organization to provide administrative, underwriting, financing or other services relating to the provision of hospital, medical or other health services or reimbursement therefor; 5) contract with a health maintenance organization to enroll members on behalf of the health maintenance organization or to issue its own certificate of benefits for the covered health services provided by the health maintenance organization; and, 6) contract with a health maintenance organization for the joint administration of their business or for the writing and issue by the health maintenance organization, the carrier, or both jointly, of health maintenance contracts binding upon the carrier. ## Nearby sections - [Mass. Gen. Laws ch. 176G, sec. 1 Definitions](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C176G_S1.md) - [Mass. Gen. Laws ch. 176G, sec. 2 Application of laws](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C176G_S2.md) - [Mass. Gen. Laws ch. 176G, sec. 3 Organization; accounting; contracts](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C176G_S3.md) - [Mass. Gen. Laws ch. 176G, sec. 4 Required coverage for certain conditions and groups](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C176G_S4.md) - [Mass. Gen. Laws ch. 176G, sec. 4A Employees terminated due to plant closings; coverage](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C176G_S4A.md) - [Mass. Gen. Laws ch. 176G, sec. 4AA Coverage for medically necessary acute treatment and clinical stabilization services](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C176G_S4AA.md) - [Mass. Gen. Laws ch. 176G, sec. 4B Confidentiality of information; mental or nervous condition; exceptions](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C176G_S4B.md) - [Mass. Gen. Laws ch. 176G, sec. 4C Home care benefits](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C176G_S4C.md) - [Mass. Gen. Laws ch. 176G, sec. 4CC Coverage for medical or drug treatments to correct or repair disturbances of body composition caused by HIV associated lipodystrophy syndrome](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C176G_S4CC.md) - [Mass. Gen. Laws ch. 176G, sec. 4D Nonprescription enteral formulas for home use](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C176G_S4D.md) - [Mass. Gen. Laws ch. 176G, sec. 4DD Filling of remaining portion of prescription for covered drug that is a narcotic substance earlier filled in lesser quantity](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C176G_S4DD.md) - [Mass. Gen. Laws ch. 176G, sec. 4E Off-label drug use; cancer treatment](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C176G_S4E.md) - [Mass. Gen. Laws ch. 176G, sec. 4EE Pain management access plan; non-medication and nonsurgical treatment; review; educational materials](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C176G_S4EE.md) - [Mass. Gen. Laws ch. 176G, sec. 4F Group health maintenance contracts; coverage for bone marrow transplants](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C176G_S4F.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C176G_S3. Check the current official text before relying on it. Not legal advice.