PUBLIC LAW 94-460—OCT. 8, 1976 and direct that the entity initiate (within 30 days of the date the notice is issued by the Secretary or within such longer period as the Secretary determines is reasonable) such action as may be necessary to bring (within such period as the Secretary shall prescribe) the entity into compliance with the assurances. If the entity fails to initiate corrective action within the period prescribed by the notice or fails to comply with the assurances within such period as the Secretary prescribes (A) the entity shall not be a qualified health maintenance organization for purposes of section 1310 until such date as the Secretary determines that it is in compliance with the assurances, and (B) each employer which has offered membership in the entity in compliance with section 1310, each lawfully recognized collective bargaining representative or other employee representative which represents the employees of each such employer, and the members of such entity shall be notified by the entity that the entity is not a qualified health maintenance organization for purposes of such section. The notice required by clause (B) of the preceding sentence shall contain, in readily understandable language, the reasons for the determination that the entity is not a qualified health maintenance orsfanization. The Secretary shall publish in the Federal Register each determination referred to in this paragraph. "('2) Tf the Secretary makes, with respect to an entity which has received a grant, contract, loan, or loan guarantee under this title, a determination described in subsection (a), the Secretary may, in addition to any other remedies available to him, bring a civil action in the United States district court for the district in which such entity is located to enforce its compliance with the assurances it furnished respecting the provision of basic and supplemental health services or its organization or operation, as the case may be, which assurances were made in connection with its application under this title for the grant, contract, loan, or loan 2fuarantee.". (c) Section 1312 is amended by adding at the end the following new subsection: "(c) The Secretary, acting through the Assistant Secretary for Health, shall administer subsections (a) and (b) in the Office of the Assistant Secretary for Health.".
90 STAT. 1953
Notification.
42 USC 300e-9.
Publication in Federal Register.
42 USC 300e11. Administration.
H M O S AISTD FEDERAL H E A L T H BENEFITS PROGRAMS
SEC. 112. Section 1307(d) is amended by adding after and below 42 USC 300e-6. paragraph (2) the following new sentence: "An entity which provides health services to a defined population on a prepaid basis and which has members who are enrolled under the health benefits program authorized by chapter 89 of title 5, United States Code, may be con- 5 USC 8901 sidered as a health maintenance organization for purposes of receiving et seq. assistance under this title if with respect to its other members it provides health services in accordance with section 1301(b) and is 42 USC SOOe. organized and operated in the manner prescribed by section 1301(c).". EXTENSIONS AND AUTHORIZATIONS
SEC. 113. (a) Section 1304(j) is amended (1) by striking out 42 USC 300e-3. "September 30, 1976" and substituting "September 30, 1978", and (2) by striking out "September 30, 1977" and substituting "September 30, 1979". (b) Subsection (d) of section 1305 is amended to read as follows: 42 USC 300e-4. "(d) No loan may be made or guaranteed under this section after September 30, 1980.".
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