Dental insurance; set medical loss ratio for insurers

SB 203 requires Alabama dental insurance companies to spend at least 85% of collected premiums on actual dental care claims for policyholders. Insurers failing this threshold must refund the excess to customers, and must annually report financial details to the Insurance Commissioner for public disclosure. The bill also prohibits premium increases exceeding the cost of dental services inflation and mandates rate review hearings if insurers challenge commissioner decisions. This applies to standalone dental plans and dental coverage within broader health plans, directly affecting insurers and policyholders in Alabama. The bill is pending in the Senate Banking and Insurance Committee after its first reading on February 27, 2025.