HB589 Alabama 2012 Session

Summary

Primary Sponsor

Joe Hubbard

Democrat

Session

Regular Session 2012

Title

State Employees' Health Insurance Plan, certain persons serving in legislative, judicial, or executive branch authorized to participate under certain conditions, Sec. 36-29-16 am'd.

Summary

HB589 would let certain state employees keep State Employees' Health Insurance Plan after leaving state service, if they meet age and service requirements and pay all costs.

What This Bill Does

The bill creates an option for eligible state employees to continue health insurance after leaving state employment. To qualify, a person must have served 24 consecutive months in the executive, legislative, or judicial branches, be at least 50 years old, and have at least 18 months of plan coverage before leaving. The former employee must pay the entire cost of the coverage, and the coverage would be limited to the former employee and their dependents. It also preserves the existing provision that certain retirees, such as judges of probate and legislators, can participate with the retiree paying the full cost, reflecting the act's intent to provide health insurance access with no cost to the state.

Who It Affects

• Current state employees in the executive, legislative, or judicial branches who meet the service and age requirements and leave state employment would be eligible to elect continued health coverage by paying all costs.
• Former state employees who elect to continue the plan would be able to cover themselves and their dependents, with costs set at the group rate.

Key Provisions

• Section 36-29-16(a): Maintains the existing rule that judges of probate and legislators can participate in the State Employees' Health Insurance Plan with the retiree paying the entire cost.
• Section 36-29-16(b): Adds new eligibility for leaving employees to continue coverage, requiring 24 consecutive months of service and age 50+.
• Section 36-29-16(b)(1): The employee must have been insured under the plan for at least 18 months before leaving.
• Section 36-29-16(b)(2): The former employee must pay the entire cost of the insurance.
• Section 36-29-16(b)(3): Coverage is limited to the former employee and their dependents.
• Section 36-29-16(b)(4): Cost adjustments will follow the group rate applicable to continuing participants.
• Section 36-29-16(c): States the intent to provide health insurance access to certain state workers with no cost to the state.
• Section 2: The act becomes effective on the first day of the third month after it passes and is approved.

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

Subjects

State Employees' Health Insurance Plan