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Bill

SB 43

Health care providers; prohibit enforcement of contractual terms that restrict sharing cost information to patients and consumers

2025 Regular Session Introduced by Tim Melson

Alabama law now prohibits healthcare providers from enforcing contracts that restrict sharing cost and pricing information with patients, enhancing price transparency and consumer decision-making.

Enacted
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Bill Summary · SB 43

Legislative bill overview

SB 43 prohibits health care providers from enforcing contractual clauses that prevent them from sharing cost and pricing information with patients and consumers. The bill became law in Alabama in May 2025, removing legal barriers that previously allowed providers to restrict price transparency communications.

Why is this important

Healthcare price transparency directly affects patients' ability to make informed financial decisions about their care and shop for competitive rates. By eliminating non-disclosure provisions, this bill aims to reduce hidden costs and help consumers understand their financial obligations before receiving treatment, potentially lowering overall healthcare expenses through market competition.

Potential points of contention

  • Provider concerns: Healthcare organizations may worry that transparent pricing could disadvantage them in negotiations with insurers or create competitive pressure that reduces negotiating leverage
  • Implementation complexity: Providers must determine what constitutes "cost information" and how to practically disclose prices for complex, bundled services with variable outcomes
  • Limited scope: The bill only addresses contractual restrictions on information sharing but doesn't mandate providers actively publish prices, potentially limiting practical consumer access

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

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