SB88 Alabama 2015 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Gerald O. Dial
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: SB88 requires health insurer contracts to allow payment methods beyond credit cards, and requires notification, opt-out rights, and written consent for electronic payments, with fee limits and voiding of conflicting clauses.
What This Bill Does
It adds the Transparency in Health Insurer Payment Transactions Act. Contracts issued after July 1, 2015 must not force payment only by credit cards. Before starting or changing electronic payments, insurers or their vendors must notify providers of all fees, give clear opt-out instructions, and obtain written consent. It also limits fees on HIPAA-standard ACH EFT payments to nominal amounts and makes any conflicting contract clauses void.

Who It Affects
Health care providers (doctors, hospitals, clinics, and other providers) who receive payments from health insurers or regional care organizations; they gain protections against high or hidden fees and must consent to new payment methods.
Health insurers, their contracted vendors, and regional care organizations; they must modify contracts to allow multiple payment methods, provide fee notices, obtain express written consent for EFT payments, and limit fees.

Key Provisions
Contracts issued, amended, or renewed after July 1, 2015 shall not restrict payments to only credit card payments; other methods must be allowed.
Before initiating or changing payments using EFT or credit card payments, the insurer/vendor/ regional care organization must notify the provider of all fees, provide clear opt-out instructions, and obtain written consent.
Consent is required for each new type of electronic funds transfer payment, but not for every single transaction thereafter.
No interchange, transaction, processing fees, or other charges may be imposed beyond a nominal amount for HIPAA-standard ACH EFT payments.
Any contract clause conflicting with these provisions is void and cannot be waived.

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