The bill aims to enhance transparency in healthcare by prohibiting contractual provisions that prevent healthcare providers and pharmacists from disclosing information about the cost and availability of treatments or drugs to patients or other individuals. Specifically, it inserts language that bars health insurers and other contracting entities from penalizing or taking adverse actions against healthcare providers for sharing such information. Additionally, any contractual provisions that impose penalties or disincentives for providing this information are deemed unenforceable in Alabama courts.
The bill defines key terms such as "health care provider," which includes licensed pharmacists, physicians, and optometrists, and outlines the types of information that providers can share with patients, including estimated costs, alternative treatments, and off-label uses of drugs. It also specifies that health insurers and contracting entities cannot cancel or refuse to renew contracts with providers based on their disclosure of this information. The act is set to take effect on October 1, 2025.