Directors on a health plan's board must demonstrate their compliance with three duties in all their decisions. Directors who exercise their duties in good faith and with the same degree of diligence and skill that an ordinary, reasonable person would be expected to display in the same situation are meeting the duty known as the

Question

Quizplus · Accepted Answer

The duty of care requires directors to exercise good faith and diligence in making decisions that an ordinary, reasonable person in the same situation would make. The duty of loyalty requires directors to act in the best interest of the health plan and not use their position for personal gain. The duty to supervise requires directors to oversee the actions of management and ensure compliance with legal and ethical standards. The trustee duty is a broader concept that encompasses all three duties and requires directors to act in the best interest of the health plan and its members. However, the specific duties of care, loyalty, and supervision are more directly relevant to individual decision-making by directors.

Directors on a Health Plan's Board Must Demonstrate Their Compliance