HB246 Alabama 2013 Session

Summary

Primary Sponsor

Greg Wren

Republican

Session

Regular Session 2013

Title

Health Insurance, State Employees' Insurance Board, authorized to offer high deductible health plan with health savings accounts, for eligible state employees, retirees, and dependents

Summary

The bill would let Alabama's State Employees' Insurance Board offer a High Deductible Health Plan with a Health Savings Account and a Health Reimbursement Arrangement to eligible state employees, retirees, and their dependents.

What This Bill Does

If enacted, the bill authorizes the State Employees' Insurance Board to offer an HDHP-HSA and an HRA to eligible active and retired state employees and their dependents. Retired employees who are eligible for Medicare would not be allowed to participate. The Board would set the terms to meet federal requirements. Employer contributions would come from the State Employees' Insurance Fund, with amounts determined by the Board, and participants could also contribute their own funds via salary reductions, which would continue to count as earnable compensation for retirement benefits.

Who It Affects

• Active state employees and their dependents would be eligible to participate in the HDHP-HSA and HRA and may receive employer contributions; they can also contribute from their earnings through salary reduction to participate.
• Retired state employees and their dependents who are not eligible for Medicare benefits would be eligible to participate and receive employer contributions; retirees eligible for Medicare would not participate.

Key Provisions

• Authorizes the State Employees' Insurance Board to offer a High Deductible Health Plan with a Health Savings Account (HDHP-HSA) to eligible active and retired state employees and their dependents.
• Authorizes the State Employees' Insurance Board to offer a Health Reimbursement Arrangement (HRA) to eligible active and retired state employees and their dependents.
• Excludes retired state employees who are Medicare eligible from participating in the HDHP-HSA.
• Employer contributions to HSAs and HRAs come from the State Employees' Insurance Fund and are determined by the Board; such contributions are not considered compensation for retirement benefit purposes.
• Participants may contribute their own funds to an HSA via salary reductions; salary reductions used for HDHP-HSA participation remain earnable compensation for retirement benefit calculations.
• The Board will establish the terms and conditions of the HDHP-HSA and HRA in accordance with federal requirements.
• Provisions are severable; conflicting laws are repealed; the act becomes effective immediately after passage and governor approval.

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

Subjects

Health Insurance