Alaska 34th Alaska State Legislature Status: In Committee 1 R cosponsors

SB 4 — An Act relating to a health care insurance policy incentive program; relating to health care services; and providing for an effective date.

Last action — (S) Minutes (SHSS)

  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill is in committee in the Senate. Introduced January 22, 2025. It must pass committee before a floor vote.

Next likely step: a committee vote, then a floor vote in the Senate.

Prognosis

Stalled 16% · moderate confidence

Where this bill stands today.

Odds of enactment

Low

How often bills like it became law.

  • In Committee

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 R).

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

195 added · 124 removed

Plain-language change summary

The revised bill SB 4 includes an updated section requiring the director of insurance to prepare an annual report detailing important information about insurers operating in the state. The changes emphasize transparency by mandating specific disclosures, like the financial status of insurers and any disciplinary actions taken against them. This matters because it aims to better inform lawmakers and the public about the health of the insurance market, helping to ensure consumer protection and improve oversight.

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34-LS0040\H CS FOR SENATE BILL NO.
34-LS0040\N SENATE BILL NO.
4(L&C) IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-FOURTH LEGISLATURE - FIRST SESSION BY THE SENATE LABOR AND COMMERCE COMMITTEE Referred:
4 IN THE LEGISLATURE OF THE STATE OF ALASKA THIRTY-FOURTH LEGISLATURE - FIRST SESSION BY SENATOR HUGHES Introduced:
Health & Social Services Sponsor(s):
1/22/25 Referred:
SENATOR HUGHES A BILL FOR AN ACT ENTITLED "An Act relating to a health care insurance policy incentive program;
Labor and Commerce, Health and Social Services A BILL FOR AN ACT ENTITLED "An Act relating to a health care insurance policy incentive program;
AS 21.06.110 is amended to read:
Sec.
21.06.110.
Director's annual report.
As early in each calendar year as is reasonably possible, the director shall prepare and deliver an annual report to the commissioner, who shall notify the legislature that the report is available, showing, with respect to the preceding calendar year, (1) a list of the authorized insurers transacting insurance in this state, with a summary of their financial statement as the director considers appropriate;
SB0004A -1- SB 4 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0040\N (2) the name of each insurer whose certificate of authority was surrendered, suspended, or revoked during the year and the cause of surrender, suspension, or revocation;
(3) the name of each insurer authorized to do business in this state against which delinquency or similar proceedings were instituted and, if against an insurer domiciled in this state, a concise statement of the facts with respect to each proceeding and its present status;
(4) a statement in regard to examination of rating organizations, advisory organizations, joint underwriters, and joint reinsurers as required by AS 21.39.120;
(5) the receipts [RECEIPT] and expenses of the division for the year;
(6) recommendations of the director as to amendments or supplementation of laws affecting insurance or the office of the director;
(7) statistical information regarding health insurance, including the number of individual and group policies sold or terminated in the state;
this paragraph does not authorize the director to require an insurer to release proprietary information;
(8) the annual percentage of health claims paid in the state that meet [MEETS] the requirements of AS 21.36.495(a) and (d);
(9) the total amount of contributions reported and the total amount of credit claimed under AS 21.96.070;
(10) the total number of public comments received and the director's efforts, to the extent allowable by law, to improve or maintain public access to information on individual health insurance rate filings before they become effective;
[AND] (11) the most recent incentive program report compiled under AS 21.96.260;
and (12) other pertinent information and matters the director considers proper.
* Sec.
3.
Except as provided in AS 21.96.220 or otherwise expressly provided by law, a person may not knowingly permit or offer to make or make a contract of life insurance, life annuity or health insurance, or agreement under the contract other than as plainly expressed in the contract, or pay, allow, give or offer to pay, allow, or give, directly or indirectly, as inducement to the insurance, or annuity, a rebate of premiums payable on the contract, or a special favor or advantage SB0004B -1- CSSB 4(L&C) New Text Underlined [DELETED TEXT BRACKETED] 34-LS0040\H in the dividends or other benefits, or paid employment or contract for services of any kind, or any valuable consideration or inducement whatever not specified in the contract;
Except as provided in AS 21.96.220 or otherwise expressly provided by law, a person may not knowingly permit or offer to make or SB 4 -2- SB0004A New Text Underlined [DELETED TEXT BRACKETED] 34-LS0040\N make a contract of life insurance, life annuity or health insurance, or agreement under the contract other than as plainly expressed in the contract, or pay, allow, give or offer to pay, allow, or give, directly or indirectly, as inducement to the insurance, or annuity, a rebate of premiums payable on the contract, or a special favor or advantage in the dividends or other benefits, or paid employment or contract for services of any kind, or any valuable consideration or inducement whatever not specified in the contract;
3.
4.
(a) A health care insurer that offers a health care insurance policy in the group or individual market shall develop and implement a program that provides a monetary incentive for a covered person enrolled in a health care insurance policy to elect to receive a covered health care service under the health care insurance policy from a health care provider that charges less than the median contracted rate recognized by the health care insurer for that health care service.
(a) A health care insurer that offers a health care insurance policy in the group or individual market shall develop and implement a program that provides a monetary incentive for a covered person enrolled in a health care insurance policy to elect to receive a covered health care service under the health care insurance policy from a health care provider that charges less than the median contracted rate recognized by the health care insurer fo r that health care SB0004A -3- SB 4 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0040\N service.
An incentive may be calculated as a percentage of the CSSB 4(L&C) -2- SB0004B New Text Underlined [DELETED TEXT BRACKETED] 34-LS0040\H difference in price as a flat dollar amount or by another reasonable methodology adopted by the director by regulation.
An incentive may be calculated as a percentage of the difference in price as a flat dollar amount or by another reasonable methodology adopted by the director by regulation.
Before offering an incentive program under AS 21.96.220, a health care insurer that offers a health care insurance policy in the group or individual market shall file a description of the program with the director in the manner determined by the director.
Before offering an incentive program SB 4 -4- SB0004A New Text Underlined [DELETED TEXT BRACKETED] 34-LS0040\N under AS 21.96.220, a health care insurer that offers a health care insurance policy in the group or individual market shall file a description of the program with the director in the manner determined by the director.
The director may review the filing to determine whether the incentive program complies with the requirements of SB0004B -3- CSSB 4(L&C) New Text Underlined [DELETED TEXT BRACKETED] 34-LS0040\H AS 21.96.210 - 21.96.300.
The director may review the filing to determine whether the incentive program complies with the requirements of AS 21.96.210 - 21.96.300.
A health care insurer shall, at the request of the director, annually provide information to the director relating to an incentive program under AS 21.96.220 for the most recent calendar year that includes (1) the total number of incentive payments;
(a) A health care insurer shall, at the request of the director, annually provide information to the director relating to an incentive program under AS 21.96.220 for the most recent calendar year that includes (1) the total number of incentive payments;
(b) The director shall include the information provided under this section in the director's annual report under AS 21.06.110 and shall submit the annual report to the chairs of the committee in each house of the legislature with jurisdiction over labor and commerce.
(a) Except as provided in (b) of this section, AS 21.96.210 - 21.96.300 apply to a health care insurance policy or contract but do not apply to excepted benefits.
(a) Except as provided in (b) of this section, AS 21.96.210 - 21.96.300 apply to a health care insurance policy or contract but do SB0004A -5- SB 4 New Text Underlined [DELETED TEXT BRACKETED] 34-LS0040\N not apply to excepted benefits.
CSSB 4(L&C) -4- SB0004B New Text Underlined [DELETED TEXT BRACKETED] 34-LS0040\H (4) "health care service" has the meaning given in AS 18.23.400(n);
(4) "health care service" has the meaning given in AS 18.23.400(n);
4.
5.
AS 29.10.200 is amended by adding a new paragraph to read:
(68) AS 29.35.142 (disclosure and reporting of health care services and price information).
* Sec.
6.
AS 29.35 is amended by adding a new section to read:
Sec.
Show all 63 changed rows (23 more)
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29.35.142.
Regulation of disclosure and reporting of health care services and price information.
(a) The authority to regulate the disclosure or reporting of price information for health care services by health care providers, health care facilities, or health care insurers is reserved to the state, and, except as specifically provided by statute, a municipality may not enact or enforce an ordinance regulating the disclosure or reporting of price information for health care services by health care providers, health care facilities, or health care insurers.
(b) This section applies to home rule and general law municipalities.
(c) In this section, (1) "health care facility" has the meaning given in AS 18.23.400(n);
(2) "health care insurer" has the meaning given in AS 21.54.500;
(3) "health care provider" has the meaning given in AS 18.23.400(n);
(4) "health care service" has the meaning given in AS 18.23.400(n).
* Sec.
7.
DEPARTMENT OF ADMINISTRATION ANALYSIS;
REPORT TO LEGISLATURE.
The Department of Administration shall analyze whether the state or SB 4 -6- SB0004A New Text Underlined [DELETED TEXT BRACKETED] 34-LS0040\N employees covered by a group health care insurance policy for a participating governmental unit would benefit if a group health care insurance policy obtained or provided under AS 39.30.090 or 39.30.091 were required to comply with the provisions of AS 21.96.210 - 21.96.300, added by sec.
4 of this Act.
The Department of Administration shall complete the analysis and compile the information into a report to the legislature, submit the report to the senate secretary and chief clerk of the house of representatives before January 31, 2026, and notify the legislature that the report is available.
* Sec.
8.
The uncodified law of the State of Alaska is amended by adding a new section to read:
5.
9.
Section 4 of this Act takes effect immediately under AS 01.10.070(c).
Sections 7 and 8 of this Act take effect immediately under AS 01.10.070(c).
6.
10.
5 of this Act, this Act takes effect January 1, 2026.
9 of this Act, this Act takes effect January 1, 2026.
SB0004B -5- CSSB 4(L&C) New Text Underlined [DELETED TEXT BRACKETED]
SB0004A -7- SB 4 New Text Underlined [DELETED TEXT BRACKETED]
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How this bill changes current law

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AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill establishes a health care insurance policy incentive program that encourages consumers to choose lower-cost health care providers.

  • AS 21.36.100

    a rebate of premiums payable on the contract, or a special favor or advantage in the dividends or other benefits, or paid employment or contract for services of any kind, or any valuable consideration or inducement whatever not specified in the contract; or directly or indirectly give, sell, purchase or offer to agree to give, sell, purchase, or allow as inducement to the insurance or annuity or in connection therewith, whether or not to be specified in the policy or contract, an agreement of any form or nature promising returns, profits, stocks, bonds, or other securities, or interest present or contingent in the contract or as measured by the contract, of an insurance company or other corporation, association, or partnership, or dividends or profits accrued or to accrue under the contract; or offer, promise, or give anything of value that is not specified in the contract.

    Clarity is provided on the limits of what may be considered an inducement, protecting incentive payments under the new incentive program.

  • AS 21.96

    Article 2. Health Care Insurance Policy Incentive Program. Sec. 21.96.210. Access to payment information. A health care insurer that offers a health care insurance policy in the group or individual market shall provide comprehensive comparison guidance by telephone and make available on the Internet website of the insurer a price comparison tool that, to the extent practicable, allows an individual enrolled in or covered under a health care insurance policy to compare the amount of cost sharing that the individual would be responsible for paying under the policy for a specific item or service provided in the same policy year and geographic region by each provider participating in the policy. At a minimum, the health care insurer shall comply with 42 U.S.C. 300gg-114. Sec. 21.96.220. Incentive program. (a) A health care insurer that offers a health care insurance policy in the group or individual market shall develop and implement a program that provides a monetary incentive for a covered person enrolled in a health care insurance policy to elect to receive a covered health care service under the health care insurance policy from a health care provider that charges less than the median contracted rate recognized by the health care insurer for that health care service.

    Establishes a legal framework for health care insurers to develop and implement a monetary incentive program for consumers to choose lower-cost health care services.

  • AS 21.96.220

    (a) A health care insurer that offers a health care insurance policy in the group or individual market shall develop and implement a program that provides a monetary incentive for a covered person enrolled in a health care insurance policy to elect to receive a covered health care service under the health care insurance policy from a health care provider that charges less than the median contracted rate recognized by the health care insurer for that health care service.

    Mandates the creation of an incentive program encouraging health care consumers to opt for more economical providers.

  • AS 21.96.230

    A health care insurer that offers a health care insurance policy in the group or individual market shall make an incentive program under AS 21.96.220 available as a component of a health care insurance policy offered in this state.

    Requires health care insurers to include the incentive program as an option in their policies.

  • AS 21.96.270

    (a) Except as provided in (b) of this section, AS 21.96.210 - 21.96.300 apply to a health care insurance policy or contract but do not apply to excepted benefits.

    Clarifies the applicability of the new incentive program provisions.

  • AS 21.96.260

    A health care insurer shall, at the request of the director, annually provide information to the director relating to an incentive program under AS 21.96.220 for the most recent calendar year.

    Imposes annual reporting requirements on health care insurers concerning the incentive program.

Action History

  1. (S) Minutes (SHSS)

  2. (S) Heard & Held

  3. (S) HEALTH & SOCIAL SERVICES at 03:30 PM BUTROVICH 205

  4. (S) Minutes (SHSS)

  5. (S) Heard & Held

  6. (S) HEALTH & SOCIAL SERVICES at 03:30 PM BUTROVICH 205

  7. (S) REFERRED TO HEALTH & SOCIAL SERVICES

  8. (S) FN2: (ADM)

  9. (S) FN1: ZERO(CED)

  10. (S) NR: DUNBAR, MERRICK, GRAY-JACKSON

  11. (S) DP: BJORKMAN, YUNDT

  12. (S) L&C RPT CS 2DP 3NR SAME TITLE

  13. (S) Minutes (SL&C)

  14. (S) Moved CSSB 4(L&C) Out of Committee

  15. (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)

  16. (S) Minutes (SL&C)

  17. (S) Heard & Held

  18. (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)

  19. (S) Minutes (SL&C)

  20. (S) Heard & Held

  21. (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)

  22. (S) L&C, HSS

  23. (S) READ THE FIRST TIME - REFERRALS

  24. (S) Prefile released 1/10/25

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 64 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (64)

64 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

healthcare health-insurance
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors SB 4?
SB 4 is sponsored by Shelley Hughes (R).
What is the current status of SB 4?
This bill is in committee in the Senate. Introduced January 22, 2025. It must pass committee before a floor vote.
Where can I track SB 4?
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