AL SB247

Health care service corporations may reorganize under a nonprofit holding corporation as the ultimate controlling entity, with board action alone (no regulatory approval required) and a streamlined notice-filing process to the Department of Insurance

Initial asset transfers to the holding corporation are capped at 25% of the health care service corporation's admitted assets, and directors/officers cannot receive compensation for facilitating the reorganization

Nonprofit holding corporations are prohibited from owning or controlling Alabama hospitals, direct health care providers, or additional health insurance entities beyond those existing at reorganization

Holding corporation boards must consist solely of health care service corporation directors, and annual group capital calculations must be filed with the Department of Insurance by June 1

Effective date: October 1, 2026