An Act relating to settlement of health insurance claims; relating to allowable charges for health care services or supplies; and providing for an effective date.

SB 121 establishes rules for how health insurance companies in Alaska set reimbursement rates for healthcare providers when no specific contract exists. It requires the state insurance director to set standards based on the 75th percentile of actual provider charges in the state (or higher), with primary care rates also needing to be at least 450% of Medicare's rates. Insurers must use statistically valid methods, apply rates uniformly, and undergo regular audits to ensure compliance. This directly affects health insurers and healthcare providers by standardizing payment calculations and preventing inconsistent or unfairly low reimbursements. The law takes effect January 1, 2026.