HB89 Alabama 2013 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Jim McClendon
Republican
Session: Regular Session 2013
Title: State Employees' Insurance board, high deductible health plan authorized, linking with a federally qualified health saving account and a federally qualified health reimbursement arrangement (HRA)
Summary: The bill lets 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
It authorizes the board to offer an HDHP-HSA to eligible active and retired state employees and their dependents, but excludes Medicare-eligible retirees from HDHP-HSA participation. The board may provide employer contributions to HSAs and HRAs, with amounts set by the board, and employees may contribute via voluntary salary reductions; these contributions are not treated as employee compensation. The terms of both the HDHP-HSA and the HRA must follow federal rules, and the act prohibits assigning or liening benefits for excepted benefits under federal health laws. The act becomes effective immediately after the governor signs it.

Who It Affects
Active state employees and their dependents may enroll in the HDHP-HSA and receive employer contributions, with optional salary-reduction funding.
Retired state employees and their dependents (excluding those Medicare-eligible) may participate and receive employer contributions to HSAs or HRAs.

Key Provisions
Authorizes the State Employees' Insurance Board to offer an HDHP-HSA to eligible active and retired state employees and their dependents; excludes retirees eligible for Medicare from HDHP-HSA participation.
Allows employer contributions to HSAs and HRAs from the State Employees' Insurance Fund; contributions are not considered compensation for purposes of state pay or retirement benefits.
Permits participant contributions to HSAs and salary-reduction funding to participate in HDHP-HSA; salary reductions remain earnable compensation for retirement benefits calculations.
Authorizes the board to offer an HRA with terms following federal requirements; employer contributions to HRAs are allowed and not considered compensation.
Prohibits assignment or lien on health benefits for excepted benefits under the Public Health Service Act; prevents benefit liens or assignments in those cases.
Repeals conflicting laws; takes effect immediately after governor's 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: State Employees