Alabama House committee approves insurance regulation amendment amid debate

The Alabama House Public Safety and Homeland Security Committee convened on April 17, 2025, to discuss significant amendments to a proposed insurance bill. The primary focus was on the transfer of premium tax collection from the Department of Revenue to the Department of Insurance, which would now oversee the administration of these funds.

During the meeting, Representative Saros moved to consider an amendment, which was seconded by Representative Marcus. The committee voted in favor of the amendment, indicating broad support for the change.

Another key discussion point involved an amendment proposed by Representative Holt Jones. This amendment aimed to clarify the enforcement responsibilities of the Department of Insurance regarding self-funded insurance plans. Representative Grama expressed concerns, labeling the amendment as "unfriendly" and questioning the implications of granting enforcement authority to the Department of Insurance, particularly since it does not typically regulate self-funded plans. He argued that the language in the amendment was vague and could lead to confusion about the Department's role in enforcing federal provisions like prompt pay laws and no surprise billing.

Despite these concerns, the committee ultimately voted on the amendment, which passed with a majority. The discussions highlighted ongoing debates about regulatory authority and the structure of insurance oversight in Alabama, reflecting a critical moment in shaping the state's insurance policy framework. The bill is set to take effect on June 1, pending further legislative processes.