SB253 Alabama 2013 Session

Summary

Primary Sponsor

Paul Bussman

Republican

Session

Regular Session 2013

Title

Insurance, optometric or dental plans, certified registered nurse services, insured or beneficiary, assignment of benefits, applicable to health care service plans and health maintenance organizations

Summary

This bill lets patients or plan beneficiaries assign reimbursement rights directly to their optometric, dental, or certified registered nurse anesthetist service providers, so those providers can get paid directly by insurers.

What This Bill Does

It allows an insured or plan beneficiary to assign the right to reimbursement to the service provider. The insurer or agency must pay the provider directly the claim amount under the usual criteria and payment schedule, including any interest. If the insurer pays the insured after assignment, the insurer becomes liable to the provider for payment. If the insurer fails to reimburse as agreed, the provider can sue in state courts for the value of the claim plus interest and attorney's fees. The bill also preserves existing contract terms, prohibits excluding assignment rights at the same benefit rate as paid to contract providers, and does not apply to state-administered health benefit plans.

Who It Affects

• Beneficiaries/insured individuals who receive optometric or dental services or certified registered nurse anesthetist services and who would assign reimbursement to a provider.
• Optometrists, dentists, and certified registered nurse anesthetists who would receive direct payment from insurers and may pursue legal remedies if payments are not made as agreed.

Key Provisions

• Allows assignment of reimbursement for optometric or dental care services or certified registered nurse anesthetist services directly to the service provider.
• Insurers must pay the provider directly the claim amount under the same terms as would be paid to a contract provider, plus any interest; payments to the insured after assignment render the insurer liable to the provider.
• If an insurer fails to reimburse as agreed, the provider can sue for the claim value plus interest and reasonable attorney's fees.
• Contracts may not exclude the right of assignment at the same benefit rate as paid to contract providers; the act does not apply to state-administered health benefit plans.

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