HB401 Alabama 2025 Session

Summary

Primary Sponsor

Phillip Rigsby Representative

Republican

Session

2025 Regular Session

Title

Dental insurance; set medical loss ratio for insurers

Description

The law does not currently regulate how insurers that cover dental care spend the premiums received from individuals and groups that contract for dental care payment or reimbursement.

This bill would require dental insurers to spend at least 85 percent of the premiums they receive on customer claims. Dental insurers that fail to spend at least 85 percent of premiums on claims would be required to refund the excess premiums retained to policyholders.

This bill would further require dental insurers to report certain income and expense information to the Commissioner of Insurance on an annual basis, and make it available to the public.

This bill would also require the Commissioner of Insurance to disallow proposed rate increases by dental insurers that exceed the consumer price index for dental services, and would provide an opportunity for a hearing if the insurer seeks to reverse the commissioner's decision.

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Subjects

Insurance