(a) A medical service corporation shall enter into service agreements with providers licensed by the state only.
(b) Each service agreement shall require the participant providers to furnish to subscribers of the service corporation the medical or surgical services, or both, that are, under the subscriber's contract, to be furnished by participant providers. This obligation to furnish the service, as provided for in the subscriber's contract, shall be a direct obligation of the participant providers to the subscribers as well as to the service corporation.
(c) Each service agreement shall further effectively provide in substance that
(1) the participant provider shall be compensated for services rendered to a subscriber in accordance with terms contained in the agreement or attached to and made a part of the agreement and that the participant provider may not request or receive from the service corporation compensation for the services that is not in accord with the terms;
(2) compensation for services may be prorated and settled under the circumstances and in the manner referred to in AS 21.87.300;
(3) if the participant provider withdraws from the agreement, the withdrawal may not be effective as to a subscriber's contract in force on the date of the withdrawal until the termination of the subscriber's contract or the next anniversary of the subscriber's contract, whichever date is the earlier.
(d) The proposed form of the service agreement shall be filed with the director and is subject to the approval of the director under AS 21.87.180.
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