Bill > HB212

This bill establishes a minimum medical loss ratio for dental insurance providers in Alabama, meaning a set percentage of premiums collected must be spent on actual dental care services for patients. Specifically, stand-alone individual dental plans must have a minimum dental loss ratio of 75 percent, while stand-alone group dental plans must have a minimum of 83 percent. The dental loss ratio is calculated by dividing the total claims paid for dental care services by the total premiums collected, after excluding certain administrative and overhead costs. Insurers will be required to report this information annually to the Commissioner of Insurance, and if a plan falls below the required ratio, the insurer must refund the excess premiums to policyholders or groups as a rebate. This bill also makes conforming changes to existing laws to include this new provision and will become effective on October 1, 2026.

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