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Alaska2026Passed Legislature

SB121

Standards for Health Insurance Provider Networks and Claim Payments

Last scannedSep 21, 2026, 12:32 AM

In one sentence

This law requires Alaska health insurance companies with limited networks to include specific percentages of local doctors, hospitals, and facilities in their provider lists and sets rules for calculating payment amounts when no contract exists between the insurer and a doctor.

What it does

  • Requires insurers using limited provider networks or offering financial incentives to use them to meet minimum network standards.
  • Mandates that insurer networks include all state-licensed hospitals, skilled nursing facilities, mental health centers, substance abuse facilities, and tribal health organizations in Alaska.
  • Sets specific percentage requirements for how many local doctors, physician assistants, and advanced practice registered nurses an insurer must have based on their geographic region (70%, 75%, or 80%).
  • Creates a rule requiring the director to set payment standards using data from provider charges over 12 months when no contract exists between the doctor and insurer.
  • Requires insurers to annually attest that they meet network size rules, submit supporting documentation, and provide a corrective action plan if they do not comply.

Who it affects

  • Health care insurance companies operating in Alaska
  • Doctors, physician assistants, and advanced practice registered nurses licensed in the state
  • Hospitals, skilled nursing facilities, mental health centers, substance abuse facilities, and tribal health organizations
  • The director of the Department of Commerce, Community, and Economic Development

Limits and unknowns

  • The exact payment amounts depend on future regulations and data collected by the director.
  • Insurers can request temporary exceptions of up to 36 months if they cannot meet network standards immediately, but specific rules for these requests will be written in later regulations.

Plain language

Terms to know

Provider network
The list of doctors, hospitals, and other medical providers that an insurance company has agreed to work with.
Allowable charges
The maximum amount an insurer will pay for a specific health care service or supply when there is no pre-negotiated contract price.
Contracting region
A specific geographic area in Alaska, such as Anchorage or Fairbanks, used to determine how many providers an insurer must include.

Official record

Sources

Validated
Official bill pageIntroduced textCurrent bill text

Official summary

HEALTH INSURANCE ALLOWABLE CHARGES 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.

Official activity

Bill history

  1. (S) REFERRED TO FINANCE2246
  2. (S) FIN REFERRAL ADDED2246
  3. (S) FN3: (CED)2246
  4. (S) FN2: (ADM)2246
  5. (S) NR: DUNBAR, YUNDT2246
  6. (S) DP: GRAY-JACKSON2246
  7. (S) AM: BJORKMAN2246
  8. (S) L&C RPT CS 1AM 1DP 2NR NEW TITLE2246
  9. (S) Moved CSSB 121(L&C) Out of CommitteeText
  10. (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)Text
  11. (S) Heard & HeldText
  12. (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)Text
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  18. (S) LABOR & COMMERCE at 01:30 PM BELTZ 105 (TSBldg)Text
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