(a) The insured, or health or dental plan beneficiary may assign reimbursement for health or dental care services directly to the provider of services. Health benefits include medical, pharmacy, podiatric, chiropractic, optometric, durable medical equipment, and home care services. The company or agency, when authorized by the insured, or health or dental plan beneficiary, shall pay directly to the health care provider the amount of the claim, under the same criteria and payment schedule that would have been reimbursed directly to the contract provider, and any applicable interest. This amount only applies to assigned claims. Any company or agency making a payment to the insured, or health or dental plan beneficiary, after the rights of reimbursement have been assigned to the provider of services, shall be liable to the provider for the payment. If the company or agency fails to reimburse the provider in accordance with the terms of the provider contract as provided in this section, then the provider shall be entitled to recover in the circuit or district courts of this state from the company or agency responsible for the payment of the claim an amount equal to the value of such claim plus interest and a reasonable attorney's fee to be determined by the court.
(b) Nothing in this section shall be construed to limit any insurer, health maintenance organization, preferred provider organization, health care service corporation, or other third party payor from determining the scope of its benefits or services or any other terms of its group and/or individual insured, subscriber or enrollee contracts nor from negotiating contracts with licensed providers on reimbursement rates or any other lawful provisions, except that the contract providing coverage to an insured may not exclude the right of assignment of benefits to any provider at the same benefit rate as paid to a contract provider.
(c) This section shall not apply to any persons covered under a state administered health benefit plan.
Structure Code of Alabama
Chapter 1 - General Provisions.
Section 27-1-3 - Applicability of Title - Generally.
Section 27-1-4 - Applicability of Title - Exemptions.
Section 27-1-5 - Compliance Requirement.
Section 27-1-6 - Prevalence of Particular Over General Provisions.
Section 27-1-7 - Effect of Captions or Headings.
Section 27-1-10.1 - Insurance Coverage for Drugs to Treat Life-Threatening Illnesses.
Section 27-1-12 - Penalty for Violation of Title.
Section 27-1-13 - Existing Forms and Filings.
Section 27-1-14 - Preservation of Prior Rights, Obligations, Etc.
Section 27-1-15 - Payment for Services of Podiatrist.
Section 27-1-17.1 - Payment of Providers Through Electronic Funds Transfer Methods.
Section 27-1-19 - Reimbursement of Health Care Providers.
Section 27-1-20 - Patient Right to Know Act.
Section 27-1-21 - Uniformity of Limits Applied to Fulfillment of Certain Drug Prescriptions.
Section 27-1-22 - Uniform Prescription Drug Information Card or Technology.
Section 27-1-23 - Motor Vehicle Accidents by Certain Public Safety Officers.
Section 27-1-24 - Alabama Insurance Underwriting Association.