AL HB401

Requires dental insurers to spend at least 85 percent of premiums collected on customer dental care claims, with insurers refunding excess premiums to policyholders if they fall short of this medical loss ratio.

Mandates insurers file annual reports by March 31 with the Commissioner of Insurance detailing claims paid, premiums collected, overhead expenses, and other financial information, which the commissioner must make publicly available.

Prohibits the Commissioner of Insurance from approving proposed premium rate increases that exceed the prior calendar year's percentage increase in the dental services consumer price index, with provisions for insurer hearings to challenge disapprovals.

Requires policyholders be notified of premium rate increase hearings and given opportunity to testify, with at least three policyholders allowed to present testimony on the impact of the proposed increase.

Becomes effective October 1, 2025, and applies to both stand-alone dental benefit plans and health benefit plans that include dental coverage.