§ 14261 Prepaid Health Plan Vendors

• •A vendor is someone who gives services or supplies to a prepaid health plan or its helpers.
• •A vendor does not have a special contract with the health plan or its helpers.
• •This rule was changed in 1977.

A company sells bandages to a health insurance company.

The bandage company is a vendor because it gives supplies to the health plan but doesn’t have a special contract with them.