SB439 Alabama 2013 Session

Summary

Primary Sponsor

Del Marsh

Republican

Session

Regular Session 2013

Title

State Employees' Health Insurance Plan and Public Education Employees' Health Insurance Plan, creation of the Public Employees' Health Insurance Board to govern the plans, membership and qualifications, revision of membership of the Public Education Flexible Employee Benefits Board, the Healthcare Data Advisory Council, and the Alabama Prescription Cost Initiative, Secs. 9-10A-20, 11-91-8, 12-5A-9, 16-13-231, 16-25A-1, 16-25A-2, 16-25A-2.1, 16-25A-3, 16-25A-7, 16-25A-8, 16-25A-15, 16-25A-16, 16-25A-17, 16-25A-42, 22-11A-118, 36-1-6.2, 36-27-6.4, 36-29-1, 36-29-3, 36-29-5, 36-29-6, 36-29-13, 36-29-14, 36-29-14.1, 36-29-15, 36-29-17, 36-29-18, 36-29-19.9, 36-29A-2, 36-34-2, 36-35-3, 36-36-1, 36-36-3, 36-36-4, 36-36-5, 36-36-6, 36-36-7, 41-10-725 am'd.

Summary

SB439 would create a single Public Employees' Health Insurance Board to govern both the State Employees' Health Insurance Plan and the Public Education Employees' Health Insurance Plan, consolidating their governance into one entity.

What This Bill Does

Creates the Public Employees’ Health Insurance Board (PEHIB) to oversee both health plans, and transfers the governance powers of the existing boards to PEHIB. Replaces references to the old boards in state law with PEHIB and changes board membership by adding PEHIB members and removing SEIB/PEEHIB members from related boards. Shifts governance of the Alabama Retired State Employees' Health Care Trust and Alabama Retired Education Employees' Health Care Trust to PEHIB and establishes irrevocable trusts to fund post-employment health benefits. Sets transition rules, with PEHIB taking over duties on January 1, 2014, and requires amendments to various sections of the law to reflect the consolidation and related changes.

Who It Affects

• Public and private-sector employees and retirees who are covered by the State Employees' Health Insurance Plan or the Public Education Employees' Health Insurance Plan, who would be governed and administered by PEHIB going forward.
• Local governments, watershed authorities, and public agencies that participate in state or local health insurance programs, whose governance representation and funding arrangements would be updated to reflect PEHIB as the overarching board.

Key Provisions

• Establishes the Public Employees' Health Insurance Board (PEHIB) as the governing body for the State Employees' Health Insurance Plan and the Public Education Employees' Health Insurance Plan, giving it all powers currently held by the existing SEIB and PEEHIB.
• Revises board membership: includes ex officio state officials, appointed members with set term expirations, and adds public employee representatives elected by statewide election; requires oath of office and diversity; meetings follow open meeting rules; one vote per member; majority needed for decisions; ties fail.
• Amends membership of other boards (Public Education Flexible Employees' Benefits Board, Health Care Data Advisory Council, Alabama Prescription Cost Initiative Board) to add PEHIB members and remove SEIB and PEEHIB members.
• Transfers governance of the Alabama Retired State Employees' Health Care Trust and Alabama Retired Education Employees' Health Care Trust to PEHIB, and creates irrevocable trusts with specified funding, investment, distribution, and tax-exemption rules to support post-employment health benefits.
• Repeals Section 36-29-2 and directs transition of duties to PEHIB, with full implementation on January 1, 2014; updates numerous code references to reflect the new PEHIB structure.

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

Subjects

Insurance