HB293 Alabama 2016 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Kyle South
Republican
Session: Regular Session 2016
Title: Contracts, health care services, payment through Automated Clearing House (ACH) electronic fund transfers must be honored, language required in contract, Sec. 27-1-17.1 added
Summary: Requires health insurer contracts to honor providers' requests to be paid via ACH electronic funds transfers and allows other electronic payment methods.
What This Bill Does
If enacted, contracts issued, amended, or renewed on or after January 1, 2017 between a health insurer or its contracted vendor or a regional care organization and a covered health care provider must include language that an ACH EFT payment request must be honored. The bill also allows providers to be paid using alternative electronic funds transfer methods. The ACH request must not be used to delay or adversely affect the provider. The act would take effect immediately after passage and governor approval.

Who It Affects
Covered health care providers (physicians, dentists, chiropractors, optometrists, hospitals, and other licensed professionals) who could be paid via ACH EFT on request and may still be paid by other electronic methods.
Health insurers, their contracted vendors, and regional care organizations who must include the mandated language in new or renewed contracts and honor ACH payment requests.

Key Provisions
Contracts issued, amended, or renewed on or after January 1, 2017 must include bold uppercase language stating that a provider's request to be paid via ACH EFT must be honored and that the request cannot be used to delay or adversely affect the provider.
Alternative electronic funds transfer methods are allowed, including wire transfers and card payments, and the act provides definitions for ACH EFT, covered health care provider, health insurer, health insurance plan, and regional care organization; the act becomes law immediately upon governor 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: Contracts