Senate Bill 170 Alabama 2026 Session

Summary

Primary Sponsor

Dan RobertsSenator

Republican

Session

2026 Regular Session

Title

Health insurance, safe harbor created

Summary

SB170 creates the Health Savings Account State-Federal Regulatory Coordination Act to shield HSA-qualified high-deductible health plans from certain state mandates and federal cost-sharing rules, with implementing rules to be set by the Insurance Commissioner.

What This Bill Does

It adds Article 5 to Chapter 19, Title 27 to establish a safe harbor protecting Health Savings Account (HSA) qualified plans from state benefit mandates or federal copay accumulator and other cost-sharing adjustments related to high-deductible health plans. If applying a federal cost-sharing requirement would cause an HSA plan to no longer qualify as a high-deductible plan, the cost-sharing requirement would apply only after the federal minimum deductible has been met. The Alabama Commissioner of Insurance may adopt rules as necessary to implement this act. The act also updates related Alabama law to reference the new Article 5 and align provisions for HSAs with HDHP rules, including self-funded arrangements.

Who It Affects

• Enrollees in HSA-qualified HDHPs, who would retain HSA protections and HDHP status despite certain federal/state rule changes.
• Health insurers, HMOs, and self-funded plan administrators in Alabama, who would implement the safe harbor, comply with the new provisions, and align existing regulations with Article 5.

Key Provisions

• Creates Health Savings Account State-Federal Regulatory Coordination Act as Article 5 of Chapter 19, Title 27.
• Provides a safe harbor protecting HSA-qualified plans from state benefit mandates or federal cost-sharing rules related to HDHPs.
• Specifies that federal cost-sharing requirements would only apply to an enrollee’s plan after the federal minimum deductible has been met to preserve HDHP qualification.
• Authorizes the Alabama Commissioner of Insurance to adopt implementing rules for the act.
• Amends Sections 10A-20-6.16 and 27-21A-23 to reference Article 5 and accommodate self-funded plans and related regulatory coordination.
• Effective date: June 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Insurance