Senate Bill 81 Alabama 2026 Session

Summary

Primary Sponsor

Larry StuttsSenator

Republican

Session

2026 Regular Session

Title

Dental insurance; set medical loss ratio for insurers

Summary

SB81 would require Alabama dental insurers to spend a minimum share of premiums on dental care, issue refunds if they fall short, and publicly report financial data.

What This Bill Does

It sets dental loss ratio minimums: 75% for individual stand-alone plans and 83% for group stand-alone plans, calculated as claims paid divided by premiums collected. If the ratio is below the minimum, insurers must rebate the excess to enrollees or apply it as a credit on future premiums. It requires insurers to report detailed income and expense information to the Commissioner of Insurance and to make that information public, with the Commissioner authorized to verify reports and enforce rebates.

Who It Affects

• Enrollees and policyholders in stand-alone dental plans, who could receive rebates or credits if insurers under-spend on dental care.
• Dental insurers issuing stand-alone dental benefit plans in Alabama, which would have to meet the loss ratio, report data, and possibly issue rebates.

Key Provisions

• Establish dental loss ratio minimums: 75% for individual stand-alone dental plans and 83% for group stand-alone dental plans.
• Define and calculate the dental loss ratio using claims paid for dental care divided by total premiums collected, with specified exclusions and adjustments.
• Require rebates: if the dental loss ratio is below the applicable minimum, insurers must refund the excess premium to enrollees or credit future premiums; rebates are issued within 60 days of calculation.
• Reporting and public disclosure: insurers must file a detailed annual report by April 30 after the end of the reporting period (three rolling calendar years) and the Department of Insurance must post the data publicly.
• Exclusions and conformity: self-funded dental plans and certain health plans that include dental benefits are exempt from some provisions; the bill makes conforming amendments to existing Alabama insurance laws.
• Enforcement and effective date: the Commissioner may adopt rules to implement the section and enforce it; the act becomes effective October 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