HB309 Alabama 2017 Session

Summary

Primary Sponsor

Nathaniel LedbetterRepresentative

Republican

Session

Regular Session 2017

Title

Physician or dentist agreement, not subject to regulation as insurance, license to sell or market not required, requirements for agreement established, discontinuance of services under the agreement, Ala. Physicians and Dentists Direct Pay Act

Summary

This bill creates the Alabama Physicians and Dentists Direct Pay Act, allowing direct-pay agreements between patients and doctors/dentists and setting rules to ensure they are not insurance.

What This Bill Does

It defines what counts as a physician or dentist direct-pay agreement and declares these agreements are not insurance and not subject to state insurance laws. It allows providers to offer these agreements without needing additional licenses beyond their current license, but they must meet minimum written requirements. It requires agreements to specify the services and fees, duration and renewal terms, and provide clear disclosures about insurance status and ACA implications, with refunds of unearned fees if the patient terminates. It also sets conditions under which a provider may discontinue care and clarifies that paying for services outside the system does not affect insurance benefits.

Who It Affects

• Patients entering physician or dentist direct-pay agreements (including uninsured patients) who would pay directly for health or dental services and must understand the non-insurance nature and disclosures involved.
• Physicians and dentists who offer, market, sell, or enter into these direct-pay agreements and must meet the written terms, fee disclosures, and conditions for termination and continuation of care.

Key Provisions

• Provision 1: The act defines what constitutes a physician agreement or dentist agreement and states that these agreements are not insurance and are not regulated as insurance.
• Provision 2: The act requires minimum terms and disclosures for the agreements, including written and signed format, 30 days’ termination notice, description of covered services and fees, duration/renewal details with no more than 12 months prepaid, prominent disclosures that it is not health insurance and related ACA considerations, refund of unearned fees on patient termination, and conditions under which care may be discontinued.

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