The Alabama Senate unanimously passed legislation Feb. 17 that would allow Blue Cross Blue Shield of Alabama to reorganize under a nonprofit holding company structure. The bill now moves to the Alabama House of Representatives and, if signed into law, would take effect Oct. 1.
The proposal would permit BCBS Alabama’s board to authorize the restructuring without prior approval from the state insurance department. The new holding company could create subsidiaries and invest in other entities, though it would be prohibited from acquiring insurers or providers operating within Alabama. Lawmakers say the move is intended to help the insurer remain competitive in a market where it currently holds a dominant share.
The legislation mirrors similar restructurings across the country, including moves by Horizon Blue Cross Blue Shield of New Jersey, Blue Cross and Blue Shield of North Carolina, Blue Cross of Idaho and Blue Shield of California. In 2024, Blue Cross and Blue Shield of Louisiana also adopted a new corporate structure after a proposed acquisition by Elevance Health fell through.
Resource: Alabama lawmakers advance bill that would allow insurers to reorganize under new holding companies