HB271 Alabama 2015 Session

Summary

Primary Sponsor

Ed Henry

Republican

Session

Regular Session 2015

Title

Health, contracts for health care services, payment not restricted to credit card only, Transparency in Health Insurer Payment Transactions, Sec. 27-1-17.1 added

Summary

HB271 would prevent health insurance contracts from forcing payment only by credit card and require fee disclosure and provider consent for electronic payments.

What This Bill Does

It prohibits contracts issued, amended, or renewed after July 1, 2015 from restricting payments to credit card only for care provided to plan enrollees. Before starting or changing electronic payments (like EFT or virtual cards), insurers or their contracted vendors must notify providers of all fees, provide clear opt-out instructions, and obtain written consent for the payment method (consent for new types of EFT payments is required). Fees are limited to a nominal bank fee, and any contract clause that conflicts with these rules is void and unenforceable.

Who It Affects

• Health care providers (doctors, hospitals, clinics, and other providers) who receive payments from health insurers or their contracted vendors; they gain protections against exclusive credit card payment requirements and must be informed and consent to EFT/virtual card payments.
• Health insurers and their contracted vendors who must offer non-credit-card payment options, disclose fees, obtain provider consent, and ensure contracts comply with the new rules.

Key Provisions

• Adds Section 27-1-17.1 to prohibit contracts from restricting payments to only credit card payments when dealing with health care providers for plan enrollees, for contracts issued, amended, or renewed after July 1, 2015.
• Requires that before initiating or changing EFT payments (including virtual/ online credit cards), insurers/Vendors must notify providers of all fees, provide clear opt-out instructions, and obtain written consent for the payment method; consent is required for each new type of EFT payment.
• Caps fees on EFT/credit-card payments so insurers/contracted vendors cannot impose charges beyond a nominal bank fee (nominal defined as the bank fees associated with HIPAA-standard ACH EFT).
• Declares that any contract clause that violates these provisions is void and cannot be waived by contract.
• Includes definitions for terms like credit card payments, health care provider, health insurer, health insurance plan, and nominal.
• Provides severability (if part of the act is invalid, the rest remains in effect) and immediate effectiveness upon passage and approval.

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 Care Providers