SB204 Alabama 2025 Session

Summary

Primary Sponsor

Shay ShelnuttSenator

Republican

Session

2025 Regular Session

Title

Dental insurance; allow available unused benefits to roll over year-to-year

Summary

SB204 would require Alabama dental and health benefit plans to let people roll over unused benefits to the next year, with limits.

What This Bill Does

If enacted, insurers must allow beneficiaries to carry over unspent annual benefit maximum dollars into the next year for dental care services. The carried-over amount is added to the next year's maximum, up to twice the prior year's maximum. Any claims incurred in the current year but paid in the next year are deducted from the current year's maximum. Insurers may set terms and conditions for using the rollover, but must follow the carryover cap and other defined rules.

Who It Affects

• Beneficiaries enrolled in dental or health benefit plans in Alabama who use dental care services (they could carry over unused funds).
• Insurers that issue, deliver, or renew dental or health benefit plans in Alabama (they must implement and manage the rollover provision).

Key Provisions

• Insurers must include a rollover provision allowing the carryover of unspent annual benefit maximum dollars into the following year for dental care services, starting January 1, 2026.
• The carried-over amount is added to the next year's annual benefit maximum but cannot exceed two times the prior year's annual maximum.
• Claims incurred in the current year but paid in the following year are subtracted from the current year's annual benefit maximum.
• Insurers may prescribe terms, limitations, and conditions for exercising the rollover provision, but must adhere to the two-times-previous-year cap.
• The bill amends Code sections 10A-20-6.16 and 27-21A-23 to conform with these changes; the act becomes effective October 1, 2025, with the rollover rule operative January 1, 2026; the Alabama Department of Insurance may adopt implementing rules.

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

Subjects

Insurance