Common use of Minimum Equity Clause in Contracts

Minimum Equity. 4.2.1 HMO has minimum equity equal to the greater of (a) $1,500,000; (b) an amount equal to the sum of twenty-five dollars ($25) times the number of all enrollees including Medicaid Members; or (c) an amount that complies with standards adopted by TDI. Equity is calculated by subtracting accrued liabilities from admitted assets, as those terms are defined in 28 TAC ss. 11.806 and ss. 11.2(b) respectively. 4.2.2 The minimum equity must be maintained during the entire contract period.

Minimum Equity. 4.2.1 HMO has minimum equity equal to the greater of (a) $1,500,000; (b) an amount equal to the sum of twenty-twenty five dollars ($25) times the number of all enrollees including Medicaid Members; or (c) an amount that complies with standards adopted by TDI. Equity is calculated by subtracting subcontracting accrued liabilities from admitted assets, as those terms are defined in 28 TAC ss. Section 11.806 and ss. Section 11.2(b) respectively. 4.2.2 The minimum equity must be maintained during the entire contract period.