Senate Bill 247

This act adds Section 10A-20-6.17 to the Code of Alabama 1975, to: (1) provide for the reorganization of a health care service corporation to have a nonprofit holding corporation as the controlling entity; (2) provide for the reorganization, including incorporation, of a nonprofit holding corporation and a transfer of no more than 25 percent of the health care service corporation’s admitted assets to a holding corporation; (3) require a health care service corporation to submit a notice of completing the reorganization to the Department of Insurance; (4) define the legal status of nonprofit holding corporations and the health care service corporations upon reorganization; and (5) specify how nonprofit holding corporations may invest in, manage, or acquire other entities, not including a direct health care provider in the state.