Alabama

Quick Facts

Key Provisions

• The Alabama Physicians and Dentists Direct Pay Act (SB 94) legally defines direct care agreements and explicitly states they are not considered insurance. This exempts them from regulation by the Alabama Department of Insurance.
• The law specifically applies to agreements for ongoing primary care or dental services offered by licensed physicians and dentists in the state.
• All direct care agreements must be in writing and signed by both the provider and the patient (or their representative).
• Agreements must clearly outline the scope of services covered by the periodic fee, the amount of the fee, and any potential additional charges for services not covered.
• Either the patient or the provider may terminate the agreement at any time, for any reason, by providing at least 30 days' written notice to the other party.
• If a patient terminates the agreement, the provider is legally required to refund all unearned fees that the patient has prepaid.
• Practices are prohibited from requiring or accepting prepayment for more than 12 months of periodic fees at one time.
• Patient contracts must include prominent, bold-font disclosures stating that the agreement is not health insurance, payments do not apply to insurance deductibles, and that patients should consult their insurance carrier before signing.
• Providers may discontinue care for specific, defined reasons, including a patient's non-payment of fees, fraud, repeated non-adherence to a treatment plan, or abusive behavior toward staff or other patients.

Medication Dispensing

While Alabama's DPC law (SB 94) does not contain specific rules for in-office medication dispensing, DPC practices must adhere to the general regulations set by the Alabama Board of Medical Examiners. Physicians who wish to dispense medications from their office are required to register as a dispensing physician with the Board. This process typically involves a straightforward, no-cost registration form. The regulations are particularly relevant for physicians who plan to dispense controlled substances, and practices should consult the Board directly to understand the full scope of requirements, definitions, and any limitations before beginning to dispense medications to patients.