HB365 would let certain former Alabama state employees who served in executive, legislative, or judicial branches and are at least 50 elect to continue State Employees' Health Insurance after leaving state service, provided they pay the full cost and meet specific eligibility conditions.
It amends Section 36-29-16 to expand who can participate in the State Employees' Health Insurance Plan after leaving state employment. Eligible individuals must have served 24 consecutive months in the executive, legislative, or judicial branches and be at least 50 years old, and they must have been insured for at least 18 months before leaving; they must pay the full cost of the coverage, and the plan would cover the former employee and their dependents with costs set according to the insurer’s group rates. The bill also preserves the existing rule that probate judges and legislators who retire with benefits can participate, with the retiree paying the full cost under the insurer’s terms, and it states an intent that health insurance could be provided at no cost to the state. The act is named the Lea Fite Act and takes effect on April 1, 2009.
Source: Alabama Legislature