HB309 Summary

• Establishes the Alabama Physicians and Dentists Direct Pay Act, defining physician and dentist agreements as direct-pay contracts between providers and patients for agreed-upon fees and time periods that are explicitly not insurance.

• Exempts physicians and dentists offering these agreements from obtaining insurance licenses or certificates of authority beyond their standard medical or dental licenses.

• Requires agreements to be in writing, signed by both parties, allow 30-day termination notice, describe covered services, specify periodic and additional fees, limit advance payment to 12 months, and include prominent disclosures about lack of insurance coverage and potential tax penalties under the Affordable Care Act.

• Prohibits patients from forfeiting existing insurance or Medicare benefits by using these agreements and requires refunds of unearned fees upon patient termination.

• Allows providers to decline new patients or discontinue care for non-payment, fraud, non-compliance with treatment plans, abusive behavior, or practice closure, consistent with existing medical and dental practice regulations.