HB401 Alabama 2011 Session

Summary

Primary Sponsor

Steve ClouseRepresentative

Republican

Co-Sponsors

Greg WrenApril WeaverBill Poole

Session

Regular Session 2011

Title

Health Department, Health Insurance Exchange established within, operated by a board, members, duties, repealed if federal health reform laws requiring exchange repealed or ruled unconstitutional, Health Insurance Exchange Act

Summary

HB401 would create the Alabama Health Insurance Exchange to run a state-run marketplace for qualified health plans with a governing board and funding, and it would be repealed if federal health reform provisions requiring an exchange are repealed or ruled unconstitutional.

What This Bill Does

The bill creates the Alabama Health Insurance Exchange within the Department of Public Health as an independent state instrumentality and a not-for-profit organization. It will be governed by an 11-member board and must offer qualified health plans to qualified individuals and qualified employers; the Exchange may charge fees to health insurance carriers to fund operations. It will establish a Small Employer Insurance Exchange, run a website with plan information, and may contract with vendors and share information with other state agencies while protecting privacy. It includes a plan to be self-sustaining by 2015 and states the act would be void if federal health reform provisions authorizing exchanges are repealed or declared unconstitutional.

Who It Affects

• Qualified individuals in Alabama would be able to compare and enroll in qualified health plans through the Exchange.
• Small employers in Alabama would use the Small Employer Insurance Exchange to provide health coverage to their employees.

Key Provisions

• Establishes the Alabama Health Insurance Exchange within the Department of Public Health as a body corporate and independent state instrumentality, recognized as a not-for-profit corporation for tax purposes.
• Creates an 11-member Board of Directors, including the Alabama Commissioner of Insurance, the Medicaid Commissioner, the State Health Officer, chairs of the House Insurance and Health Committees, the Senate Banking and Insurance Committee, two insurer representatives, one licensed insurance producer, and one consumer/employer representative.
• Requires the Exchange to make qualified health plans available to qualified individuals and qualified employers; permits charging fees to health insurance carriers to fund operations; authorizes rulemaking by the department.
• Establishes a Small Employer Insurance Exchange to help qualified small employers enroll employees in qualified health plans; creates an Internet website for standardized plan comparisons and enrollment.
• The Exchange may contract with eligible entities and enter information-sharing agreements with state agencies, with privacy protections and in compliance with laws and regulations.
• The Exchange cannot regulate insurers or act as an appeals entity for disputes; it remains subject to state insurance laws and rules.
• The Exchange must be self-sustaining by January 1, 2015 and may levy assessments or user fees; it must maintain financial integrity and provide annual reporting.
• If federal health reform provisions authorizing the exchange are repealed or declared unconstitutional, this act is void.
• Effective date: October 1, 2011.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Health Insurance