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SB 43

AN ACT FOR THE DEPARTMENT OF FINANCE AND ADMINISTRATION - ASSESSMENT COORDINATION DIVISION APPROPRIATION FOR THE 2025-2026 FISCAL YEAR.

2025 Regular Session

SB 43 empowers patients by allowing healthcare providers to share treatment costs and alternatives without fear of penalties, enhancing transparency in healthcare.

Notification that SB43 is now Act 60
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Bill Summary · SB 43

Summary of Senate Bill 43 (SB 43)

Purpose and Intent

Senate Bill 43 (SB 43), enacted on May 22, 2025, aims to enhance transparency in healthcare costs by prohibiting health care providers and pharmacists from being restricted by contractual terms that prevent them from sharing cost information with patients and consumers. The bill seeks to empower patients by ensuring they receive clear information about treatment costs and available alternatives.

Key Provisions

SB 43 introduces several important provisions:

  1. Prohibition of Restrictive Contracts:

    • Health care providers and pharmacists cannot be penalized or restricted by contracts from disclosing information about the costs and availability of treatments or medications to patients.
    • Any contractual clause that forbids such disclosures is deemed unenforceable in Alabama courts.

  2. Protection Against Retaliation:

    • Health insurers and other contracting entities are prohibited from taking adverse actions against health care providers or pharmacists for providing cost-related information to patients.
    • This includes actions such as canceling or refusing to renew contracts based on disclosures made by health care providers.

  3. Rights to Civil Action:

    • Health care providers who experience adverse actions due to compliance with the provisions of this bill may file a civil lawsuit against the health insurer or contracting entity.
    • Providers can seek actual damages, equitable relief, and recovery of reasonable costs and attorney fees.

  4. Information Disclosure:

    • Health care providers are allowed to inform patients about:
      • Estimated costs of treatments or drugs, including costs without insurance.
      • Less expensive alternatives to the treatments or drugs being considered.
      • Availability of alternative treatments or drugs, including off-label uses, as long as they are within the standard of care.

Affected Parties

  • Health Care Providers: This includes licensed pharmacists, physicians, and other health care professionals who will now have the freedom to discuss costs and alternatives with patients without fear of contractual repercussions.
  • Patients and Consumers: Patients will benefit from increased transparency regarding treatment costs, allowing them to make more informed decisions about their healthcare options.
  • Health Insurers and Contracting Entities: These organizations will need to adjust their contracts and practices to comply with the new regulations and cannot retaliate against providers for sharing information.

Procedural Aspects

  • Effective Date: The provisions of SB 43 will take effect on October 1, 2025.
  • Legislative Journey: The bill was introduced on January 22, 2025, and underwent several readings and amendments before being passed unanimously in the Senate (33-0) and later in the House. It was signed into law by the Governor on May 14, 2025.

Conclusion

Senate Bill 43 represents a significant step towards greater transparency in healthcare costs, empowering both providers and patients. By removing contractual barriers to information sharing, the bill aims to foster a more informed patient population and promote competition in healthcare pricing.

Compiled from official sources — confirm details with the bill’s official record.

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