An Act relating to insurance; relating to direct health care agreements; relating to the duties of the director of the division of insurance in the Department of Commerce, Community, and Economic Development; and providing for an effective date.

This law creates a legal framework for direct health care agreements in Alaska, which are contracts between patients and health care providers where services are exchanged for regular payments. These agreements are restricted to individuals who are not eligible for state medical assistance programs and must clearly state that they are not health insurance and do not offer federal mandate coverage. The bill mandates specific rules for these contracts, including requirements to list covered services and fees, allow patients to cancel within 30 days of signing with a refund, and limit fee increases to once per year with advance notice. Employers are permitted to pay these fees on behalf of employees without the payment being considered insurance underwriting. The new regulations take effect on January 1, 2025.