SB84 Alabama 2025 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

2025 Regular Session

Title

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

Summary

SB84 would allow certain Alabama nonprofit agricultural organizations to offer health benefits to their members and families without being treated as health insurers.

What This Bill Does

The bill defines what a qualifying nonprofit agricultural organization is and what its health benefits would include. It authorizes such organizations to offer health benefits to members and their families in Alabama, while stating they are not health insurers. It requires written notice to applicants that these benefits are not provided through a traditional insurance policy, and signed acknowledgment is kept. It also allows contracts with insurers to transfer some risk and becomes effective October 1, 2025.

Who It Affects

• Qualifying nonprofit agricultural organizations in Alabama that meet the defined criteria, who would be able to offer health benefits.
• Members and family members of those organizations who could enroll in the offered health benefits.

Key Provisions

• Defines 'nonprofit agricultural organization' with criteria: 501(c)(5) status, domiciled in Alabama, existed prior to 1940, members reside in at least 98% of Alabama counties, collects annual dues, and aims to promote profitable agriculture and rural life.
• Defines 'nonprofit agricultural organization health benefits' as benefits offered by the organization or its affiliate, limited to members or their families, not provided through an insurance policy or product regulated as health insurance, and deemed important for members' long and productive lives.
• Authorizes a nonprofit agricultural organization to offer health benefits in Alabama under these rules.
• Enrollment requirements: the organization must provide written notice that benefits are not through insurance; applicants must sign and return the notice before enrollment; the signed notice must be kept for the term of the benefits and a copy provided upon request.
• The organization is not considered a health insurer or engaged in the health insurance business when offering these benefits.
• Allows the organization to contract with external insurers (not under common control) to transfer all or part of the risk related to the offered benefits.
• Repeals conflicting laws and establishes an 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