HB40 Alabama 2012 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Paul W. LeeRepresentative
Republican
Session: Regular Session 2012
Title: United Ways of Alabama, authorized to participate in state health insurance coverage, Sec. 36-29-14 am'd.
Summary: HB40 would allow United Ways of Alabama and its member United Ways to participate in Alabama's State Employees' Insurance Board health insurance program.
What This Bill Does
It amends Section 36-29-14 to add United Ways of Alabama and its member United Ways to the list of entities that may elect to join the State Employees' Insurance Board health plan. If they elect to participate, their officers, employees, members, and retirees (and their dependents) would be eligible for SEIB coverage, with benefits designated by SEIB. Participation would be optional for the SEIB, and employers could pay all or part of the premiums and must remit premiums and provide necessary information. The withdrawal process is defined, including notice requirements, responsibility for prior claims, and penalties, and there are rules governing interactions with other health insurance programs.

Who It Affects
United Ways of Alabama and its member United Ways would be eligible to elect to participate in the State Employees' Insurance Board health plan and have their staff and retirees covered under SEIB if they choose to join.
State and local government employers (including agencies, counties, municipalities, and similar entities) that sponsor participating United Ways would be responsible for premium payments, administration, and enrollment; if they withdraw, they face liability for prior claims, interest on late payments, and a potential 2-year limitation on benefits from related health insurance providers.

Key Provisions
Provision 1: Amends 36-29-14 to include United Ways of Alabama and its member United Ways as eligible to participate in the State Employees' Insurance Board health insurance program.
Provision 2: Participation is optional for the State Employees' Insurance Board; if accepted, eligible individuals (officers, employees, members, retirees, and dependents) receive coverage and benefits as designated by SEIB; costs may be paid by the employer.
Provision 3: Employers must remit premiums to SEIB and provide required information; withdrawal by the employer requires a governing body resolution and six months' notice, with liability for prior claims and interest on overdue amounts.
Provision 4: Any organization administering health benefits through LGHIP shall not provide benefits to a withdrawing entity for two years; SEIB will promulgate rules and may hire actuarial and other services; associated costs are paid by SEIB.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: United Ways of Alabama