SB419 Alabama 2011 Session

Summary

Primary Sponsor

Del Marsh

Republican

Session

Regular Session 2011

Title

Public Education Employees' Health Insurance Plan (PEEHIP), employees retiring after December 31, 2011, subject to sliding scale premium calculation based on years of service and difference between age of employee at retirement and Medicare entitlement age, limit on employer contribution based on other health insurance of spouse, false information basis for disqualification of coverage, employer contribution for non-Medicare retiree not to exceed contribution for active employee, Secs. 16-25A-1, 16-25A-8.1, 16-25A-17.1, 16-25A-20, 16-25A-22 am'd. (2011-20825)

Summary

SB419 changes PEEHIP rules by tying retiree premiums to years of service and Medicare age, adding spouse-coverage adjustments, and expanding poverty-level assistance with fraud penalties.

What This Bill Does

The bill lets the board add surcharges or adjustments to premiums based on a spouse's eligibility for other health insurance. It requires most employees retiring after 12/31/2011 to pay premiums on a sliding scale tied to years of service and to the gap between retirement age and Medicare entitlement age. It caps non-Medicare retirees' employer contributions so they do not exceed active employee contributions by October 1, 2016, and it creates poverty-level assistance for those within 300% of the federal poverty level. It also relaxes the requirement for a two-thirds board vote to change employee or retiree premium costs and establishes penalties including disqualification from coverage for false information or fraud.

Who It Affects

• PEEHIP participants who retire after December 31, 2011 (both active employees and retirees) would face sliding-scale premiums based on years of service and the Medicare-age gap, potential caps on employer contributions, and eligibility for poverty-level assistance.
• Employees and retirees whose spouses have other health insurance or who fall within 300% of the federal poverty level; they could see premium adjustments based on spouse coverage and may qualify for poverty-level assistance.

Key Provisions

• Employer contributions may include adjustments or surcharges based on a covered spouse's eligibility for other health insurance.
• Anyone who knowingly submits false or misleading information or engages in fraud may be disqualified from coverage and may have to repay plan costs.
• Employees retiring after December 31, 2011 are subject to a sliding-scale premium based on years of service.
• Employees retiring after December 31, 2011 are subject to a sliding-scale premium based on the difference between retirement age and Medicare entitlement age.
• For non-Medicare retirees, the employer contribution may not exceed the active employee contribution by October 1, 2016.
• Low-income employees and retirees within 300% of the federal poverty level may receive targeted premium assistance with set percentage contributions based on income level.
• The board would no longer require a two-thirds vote to change employee or retiree contributions.

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

Subjects

Public Education Employees' Health Insurance Program