SB482 Alabama 2012 Session

Summary

Primary Sponsor

Roger Bedford, Jr.

Democrat

Session

Regular Session 2012

Title

Insurance, Title 27, certain sections, repealed

Summary

SB482 would repeal certain provisions of Alabama’s Insurance Code (Title 27), removing requirements on mental health reimbursement, assignment of benefits, and plain-language plan descriptions.

What This Bill Does

If enacted, SB482 would repeal Sections 27-1-18 through 27-1-20 of the Alabama Insurance Code. This would remove rules about reimbursing mental health services provided by psychiatrists or psychologists, the right of insurers to assign benefit payments directly to providers, and the Patient Right to Know Act requiring plain-language plan descriptions. As a result, the state would no longer require these specific protections or disclosures in health plans or insurance contracts.

Who It Affects

• Enrollees/insureds: would lose the mandated protections for mental health service reimbursement, the ability to assign benefits to providers, and the requirement to receive plan terms in plain language.
• Insurance companies, health plans, and health care providers (e.g., psychiatrists and psychologists): the direct-payment/assignment provisions and the plain-language plan description requirements would be repealed, removing these specific state-mandated obligations and allowing plans to set terms without these requirements.

Key Provisions

• Repeal of 27-1-18: eliminates requirements regarding reimbursement for outpatient/inpatient mental health services provided by psychiatrists or psychologists.
• Repeal of 27-1-19: eliminates rules about assignment of reimbursement to providers and direct payment to providers by insurers; removes related provider recovery provisions.
• Repeal of 27-1-20: eliminates the Patient Right to Know Act, including requirements for plain-language plan descriptions and the listed disclosures to enrollees.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Insurance