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AlabamaHB4772025 Regular SessionHouseWALLET

Non profit agricultural organization, authorized to offer health benefits to members

Sponsored By: David Faulkner (Republican)

Enacted

Health

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 3 benefits, 1 costs, 3 mixed.

Member health plans get coverage protections

Member plans must cover outpatient care, hospital stays, emergency care, lab services, mental health and substance use treatment, and prescriptions. Any yearly cap on total covered benefits must be at least $2 million per enrollee. While coverage remains active, a medical event cannot trigger cancellation, nonrenewal, contract changes, or a higher premium. The organization cannot use a medical event after a claim to reassess an individual's medical risk while coverage is active.

Member plans limit some outside-network bills

The organization must use in-network providers whenever possible and follow Alabama's prompt-payment rules. For out-of-network emergency care, it pays its median in-network rate for covered services, minus in-network cost sharing. For services it does not cover, emergency payment is 80% of the maximum allowable charge, minus in-network cost sharing. For covered nonemergency care at a contracted facility, protection applies when you cannot choose an available participating professional. The organization alone owes those provider charges, except for your applicable copays, coinsurance, and deductibles.

Noninsurance member plans require clear notices

These benefits are not insurance, and an organization following this law is not treated as a health insurer. Applicants must sign and return a written notice explaining this status before enrolling. The organization must keep that notice throughout coverage and provide a copy on request. It must choose an ombudsman, in consultation with the Alabama Department of Insurance, and create a similar complaint process. The department may review and comment on complaints it receives and must forward them to the ombudsman.

Farm members gain limited health options

Beginning June 1, 2025, a qualifying Alabama farm organization or its affiliate can offer members and their families health benefits. The organization must have federal 501(c)(5) tax-exempt status, be based in Alabama, and have existed before 1940. It must collect annual dues, have members in at least 98% of Alabama counties, and have been created to promote agriculture and rural life. Buyers must certify they cannot join an employer health plan or that its cost exceeds 9% of household income.

Member plans require financial safety checks

The organization must file a signed opinion from a qualified actuary with the Alabama Department of Insurance each year. It must certify that the organization's and its affiliates' plan reserves are adequate and meet applicable actuarial standards. The organization must also transfer some or all benefit risk through contracts with entities authorized to conduct insurance business in Alabama. Those entities cannot be under common control with the organization.

Only approved sellers offer member plans

Sellers must hold an Alabama accident and health insurance producer license and fit one of three groups. They can be employees of the farm organization or its affiliate. They can be agents employed by, or exclusively contracting with, an organization authorized to sell products to members. They can also work as employees or agents of a similar out-of-state farm organization contracted to underwrite or service benefits. Brokers and other sellers outside these groups cannot sell the plans.

Farm benefit organizations get special taxes

The organization pays a yearly 1.3% tax on premiums collected under this law, replacing other taxes and licenses. Returns and payments go to the Alabama Department of Insurance twice yearly, by the 20th of the month following each six-month collection period. Counties and municipalities cannot impose license or privilege taxes on an organization subject to this tax. The organization and its affiliates are also exempt from Alabama income taxes. Up to 2% of collections covers administration through the Insurance Department Fund; the rest goes to the State General Fund.

Sponsors & Cosponsors

Sponsor

  • David Faulkner

    Republican • House

Cosponsors

  • Alan Baker

    Republican • House

  • Allen Treadaway

    Republican • House

  • Arnold Mooney

    Republican • House

  • Ben Harrison

    Republican • House

  • Bill Lamb

    Republican • House

  • Brett Easterbrook

    Republican • House

  • Chad Robertson

    Republican • House

  • Chip Brown

    Republican • House

  • Chris Sells

    Republican • House

  • Danny Crawford

    Republican • House

  • David Standridge

    Republican • House

  • Ed Oliver

    Republican • House

  • Ernie Yarbrough

    Republican • House

  • Ivan Smith

    Republican • House

  • Jamie Kiel

    Republican • House

  • Jennifer Fidler

    Republican • House

  • Jerry Starnes

    Republican • House

  • Kelvin Lawrence

    Democratic • House

  • Kenyatté Hassell

    Democratic • House

  • Leigh Hulsey

    Republican • House

  • Mack Butler

    Republican • House

  • Mark Gidley

    Republican • House

  • Mark Shirey

    Republican • House

  • Matthew Hammett

    Republican • House

  • Member 100519

    Affiliation unavailable

  • Parker Moore

    Republican • House

  • Reed Ingram

    Republican • House

  • Rick Rehm

    Republican • House

  • Ritchie Whorton

    Republican • House

  • Ron Bolton

    Republican • House

  • Russell Bedsole

    Republican • House

  • Scott Stadthagen

    Republican • House

  • Shane Stringer

    Republican • House

  • Steve Hurst

    Republican • House

  • Susan DuBose

    Republican • House

  • Thomas Jackson

    Democratic • House

  • Tracy Estes

    Republican • House

  • Troy Stubbs

    Republican • House

  • William Brock Colvin

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 522 • No: 91

Senate vote • 5/1/2025

Motion to Read a Third Time and Pass - Adopted Roll Call 922

Yes: 30 • No: 2 • Other: 2

Senate vote • 5/1/2025

Singleton motion to Adopt - Lost Roll Call 921

Yes: 8 • No: 25 • Other: 1

Senate vote • 5/1/2025

Singleton motion to Adopt - Lost Roll Call 920

Yes: 9 • No: 23 • Other: 1

Senate vote • 5/1/2025

Coleman-Madison motion to Adopt - Lost Roll Call 919

Yes: 9 • No: 24 • Other: 1

House vote • 4/10/2025

Motion to Adopt - Adopted Roll Call 791

Yes: 74 • No: 15 • Other: 4

House vote • 4/10/2025

Motion to Adopt - Adopted Roll Call 790

Yes: 98 • No: 1

House vote • 4/10/2025

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 792

Yes: 98 • No: 1 • Other: 2

House vote • 4/10/2025

Motion to Adopt - Adopted Roll Call 789

Yes: 98 • No: 0

House vote • 4/10/2025

Third Reading in House of Origin

Yes: 98 • No: 0 • Other: 1

Actions Timeline

  1. Enacted

    5/7/2025House

  2. Ready to Enroll

    5/6/2025House

  3. Ready to Enroll

    5/6/2025House

  4. Enrolled

    5/6/2025House

  5. Signature Requested

    5/6/2025Senate

  6. Delivered to Governor

    5/6/2025House

  7. Coleman-Madison 1st Amendment Offered

    5/1/2025Senate

  8. Coleman-Madison motion to Adopt - Lost Roll Call 919

    5/1/2025Senate

  9. Singleton 1st Amendment Offered

    5/1/2025Senate

  10. Singleton motion to Adopt - Lost Roll Call 920

    5/1/2025Senate

  11. Singleton 2nd Amendment Offered

    5/1/2025Senate

  12. Singleton motion to Adopt - Lost Roll Call 921

    5/1/2025Senate

  13. Motion to Read a Third Time and Pass - Adopted Roll Call 922

    5/1/2025Senate

  14. Reported Out of Committee Second House

    4/22/2025Senate

  15. Read for the Second Time and placed on the Calendar

    4/22/2025Senate

  16. Read for the first time and referred to the Senate Committee on Banking and Insurance

    4/15/2025Senate

  17. Pending Committee Action in Second House

    4/15/2025Senate

  18. Carried Over to the Call of the Chair

    4/10/2025House

  19. Third Reading in House of Origin

    4/10/2025House

  20. Health Engrossed Substitute Offered

    4/10/2025House

  21. Motion to Adopt - Adopted Roll Call 789

    4/10/2025House

  22. Lee 1st Amendment Offered

    4/10/2025House

  23. Motion to Adopt - Adopted Roll Call 790

    4/10/2025House

  24. Faulkner 1st Amendment Offered

    4/10/2025House

  25. Motion to Adopt - Adopted Roll Call 791

    4/10/2025House

Bill Text

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