HB612 Summary

• Authorizes the Alabama Commissioner of Insurance to establish a state health insurance exchange to facilitate purchase and sale of qualified health plans in the individual market, operating as an alternative to the federal exchange under the Affordable Care Act.

• Authorizes the Commissioner to apply for federal waivers to establish a reinsurance program for the individual health insurance market to stabilize premium rates and provide financial certainty to consumers through an attachment point, reinsurance cap, and coinsurance rate structure.

• Establishes the Alabama Health Insurance Exchange Fund and Reinsurance Fund as special funds within the State Treasury, with the Commissioner authorized to collect fees from participating health carriers and federal funding to support exchange and reinsurance program operations.

• Requires annual audits of both the exchange and reinsurance programs, with reports submitted to legislative committees and posted on the Department of Insurance website, and provides sunset provisions if key ACA provisions are repealed or if the Commissioner determines the programs are not in consumers' best interest.

• Amends Sections 10A-20-6.16 and 27-21A-23 to make health care service corporations and health maintenance organizations subject to this act as it relates to the exchange and reinsurance program.