SB43 Alabama 2025 Session

Summary

Primary Sponsor

Tim MelsonSenator

Republican

Session

2025 Regular Session

Title

Health care providers; prohibit enforcement of contractual terms that restrict sharing cost information to patients and consumers

Summary

SB43 would let health care providers share cost information and cheaper treatment options with patients, while stopping insurers from penalizing or restricting such disclosures.

What This Bill Does

It bars health insurers and other contracting entities from enforcing contracts that prohibit providers from sharing cost estimates, allowed payment amounts, or cost-sharing details, and makes such restrictive clauses unenforceable. It allows providers to disclose information about alternative treatments or cheaper options, including off-label use within standard of care. It forbids insurers from canceling or not renewing contracts or taking adverse actions against providers for sharing cost and treatment information, and it allows providers to recover damages if an insurer retaliates; the law takes effect October 1, 2025.

Who It Affects

• Health care providers (doctors, pharmacists, optometrists, etc.) would be able to share cost information and information about cheaper or alternative treatments with patients without contract penalties or retaliation.
• Health insurers and other contracting entities would be barred from enforcing restrictive contracts and from penalizing providers for sharing cost and alternative information; they could face damages if they take adverse actions against providers for disclosures.

Key Provisions

• Unenforceability of any contract clause that prohibits a health care provider from sharing cost information or that penalizes providers for providing such information to patients or others.
• Prohibition on health insurers taking adverse actions against providers for sharing cost and treatment information; permission for providers to recover damages if adverse actions occur; effective date of October 1, 2025.

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