HB649 Alabama 2010 Session

Summary

Primary Sponsor

Richard Lindsey

Democrat

Co-Sponsors

H. Mac GipsonMac McCutcheonChad FincherJamie Ison

Session

Regular Session 2010

Title

State Employees' Health Insurance Plan, retiree sliding scale premium calculation required to be based on years of coverage in the plan or for time served in the United States Armed Forces or as an employee as defined in Sections 16-25A-1 and 16-25A-11, Secs. 36-29-1, 36-29-10, 26-29-19.7 am'd.

Summary

HB649 changes how Alabama state employee retiree health insurance premiums are calculated by tying the sliding-scale premium to years of coverage in the state plan or time served in the armed forces or certain state employment credits for retirees after September 30, 2010.

What This Bill Does

For retirees after September 30, 2010, the retiree sliding-scale premium will be based on years of coverage in the State Employees' Health Insurance Plan or time served in the U.S. Armed Forces or as defined by state law. The bill changes definitions and lets the State Employees' Insurance Board set and adjust employer contributions for each retiree class, with a cap of 100% of the total premium. It also states that, effective October 1, 2010, the employer contribution for non-Medicare retirees not covered by Medicare who retire after September 30, 2010 cannot exceed the employer contribution for active employees; disability retirements have a statutory exemption for certain pre-July 1, 2010 cases.

Who It Affects

• Retirees not covered by Medicare who retire after September 30, 2010; their health insurance premiums under the state plan will be calculated using years of coverage in the plan or time served, which could change their payment amounts.
• The State Employees' Insurance Board and state employers; they will determine and manage the sliding-scale premium, set contributions by retiree class, and adjust for Medicare costs, with deductions taken from retiree benefits.

Key Provisions

• The retiree sliding-scale premium calculation must be based on years of coverage in the State Employees' Health Insurance Plan or time served in the U.S. Armed Forces or defined state employment credits for all retirees after September 30, 2010.
• The bill amends definitions to clarify who counts as an employee/retiree and how service years are calculated for premium purposes.
• The State Employees' Insurance Board sets the employer contribution for each retiree class; total employer contribution cannot exceed 100% of the retiree's premium, with adjustments allowed for Medicare cost changes.
• Effective date: the act takes effect on the first day of the third month after passage; for non-Medicare retirees, the employer contribution after October 1, 2010 cannot exceed the active-employee level; disability retirements have specific exemptions.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

State Employees' Health Insurance Plan