SB232 Alabama 2024 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2024

Title

Agricultural organization, nonprofit, health benefits, authorized to offer to members and families, conditions, specified not to be engaged in health insurance business.

Summary

SB232 would authorize certain Alabama nonprofit agricultural organizations to offer health benefits to their members and their families, without these benefits being health insurance.

What This Bill Does

It creates a framework for eligible nonprofit agricultural organizations to sponsor health benefits for members and family members under conditions that keep these benefits out of the traditional health insurance system. The benefits must not be provided through an insurance policy or regulated health insurance product, and applicants must be notified in writing and sign a confirmation before enrolling. The bill also allows these organizations to contract with licensed insurers to transfer some risk, clarifies they are not insurers themselves, repeals conflicting laws, and sets an effective date of June 1, 2024.

Who It Affects

• Members of qualifying nonprofit agricultural organizations and their family members who would be eligible to enroll in these non-insurance health benefits.
• Qualifying nonprofit agricultural organizations (and their affiliates) that offer the benefits and may contract with insurance entities to handle risk.

Key Provisions

• Definition of a qualifying nonprofit agricultural organization, including tax-exempt status under 501(c)(5), Alabama domicile, existence before 1940, member residency requirements, annual dues, and purpose to promote agriculture and rural life.
• Definition of nonprofit agricultural organization health benefits, including sponsorship by the organization or affiliate, eligibility to members or their family members, exclusion from insurance policies or regulated insurance products, and consideration as important to members' long, productive lives.
• Authorization for eligible nonprofit agricultural organizations to offer nonprofit agricultural organization health benefits within Alabama.
• Enrollment protections: written notice that benefits are not provided through an insurance policy; required signed acknowledgment before enrollment; organization must maintain copies for the term and provide copies on request.
• Not an insurer: the nonprofit is not engaged in the business of health insurance and may contract with other authorized insurance entities to transfer some risk, under non-common control.
• Legal alignment: repeal of conflicting laws and effective date of June 1, 2024.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Health