HB245 Alabama 2012 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Greg Wren
Republican
Session: Regular Session 2012
Title: Health Insurance Exchange established, operated by a board, members, duties, repealed if federal health reform laws requiring exchange repealed or defunded or declared unconstitutional by the U.S. Supreme Court, Health Insurance Exchange Act
Summary: HB245 creates the Alabama Health Insurance Marketplace, a quasi-public, nonprofit entity run by a board to help individuals and small employers buy qualified health plans, and it would be repealed if federal health reform laws are repealed or declared unconstitutional by the U.S. Supreme Court.
What This Bill Does
The act establishes the Alabama Health Insurance Marketplace to facilitate the purchase and sale of qualified health plans for individuals and small employers, with a separate Small Employer Marketplace. It requires the exchange to offer qualified health plans, provide a county-by-county selection with at least one silver and one gold plan in every county, and run a consumer navigation program with a website for comparing plans. It sets up a diverse board to govern the exchange, allows hiring staff and contracting with vendors, and lets the exchange collect funding through carrier and broker fees, grants, and appropriations, aiming to be self-sustaining by 2015.

Who It Affects
Qualified individuals and qualified employers in Alabama who would use the Marketplace to compare, enroll in, and purchase qualified health plans.
Health insurance carriers, insurance agents/brokers, and related associations operating in Alabama who would offer plans through the Marketplace and may be subject to fees, rules, and provider network standards.

Key Provisions
Establishes the Alabama Health Insurance Marketplace (AHIM) as a quasi-public, nonprofit corporation governed by a board with specified members from state agencies, legislative leadership, insurers, brokers, consumer groups, and healthcare providers.
Creates an Individual Health Insurance Marketplace and a Small Employer Insurance Marketplace to facilitate enrollment of qualified individuals and small employers, with requirements for minimum plan offerings (at least one silver and one gold plan in every county).
Allows the AHIM to charge fees to health insurance carriers, agents, and brokers to fund operations and requires the Marketplace to be self-sustaining by January 1, 2015; may receive appropriations and grants and may contract with vendors.
The AHIM does not regulate insurers or act as an appeals body, is not required to obtain accreditation beyond federal law, and is not required to offer plans statewide in all counties.
Requires a state website with standardized plan information, a navigator program, and rules to minimize adverse selection (enrollment periods and plan restrictions); establishes provider network standards for exchange products.
Mandates transparency and accountability, including annual financial reporting, open meetings, audits, and data sharing with federal authorities as needed; transfers existing health exchange data/assets to the AHIM and provides for repeal if federal health reform laws are repealed or deemed unconstitutional.

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