HB459 Alabama 2016 Session

Summary

Primary Sponsor

Phillip PettusRepresentative

Republican

Session

Regular Session 2016

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

HB459 creates a single Public Employees’ Health Insurance Board to govern both the State Employees’ and Public Education Employees’ health insurance plans, replacing the existing boards over time.

What This Bill Does

It establishes the Public Employees’ Health Insurance Board (PEHIB) to administer and govern the two health plans and to potentially combine them. It alters board memberships by adding PEHIB members and removing certain SEIB and PEEHIB members from related boards, and it places governance of the retired state and education health care trusts under PEHIB. It sets a transition framework where the current boards govern until January 1, 2017, at which point PEHIB assumes full duties, and it requires amendments to numerous laws to reference PEHIB and reorganize related duties. It also repeals the current SEIB governance statute (36-29-2) and consolidates references to PEHIB across state law.

Who It Affects

• State employees and Public Education employees (including active and retired members and their dependents) whose health plans would be governed by the new PEHIB and who may have new representation and policy decisions affecting benefits and premiums.
• Local governments and other employers participating in health insurance programs (such as the Local Government Health Insurance Program) whose governance, funding, and eligibility oversight would be reorganized under PEHIB and who may see changes in administration and contractual arrangements.

Key Provisions

• Creates the Public Employees’ Health Insurance Board (PEHIB) to govern both the State Employees’ Health Insurance Plan and the Public Education Employees’ Health Insurance Plan, transferring authority from the existing SEIB and PEEHIB.
• Defines PEHIB membership, including ex officio state officials, four public-employee representatives elected statewide, and other appointment/election processes with terms, oath requirements, and diversity provisions.
• Transfers governance of the Alabama Retired State Employees’ Health Care Trust and Alabama Retired Education Employees’ Health Care Trust to PEHIB, and revises governance structures for related boards and councils by adding PEHIB members and removing SEIB/PEEHIB members.
• Amends numerous state statutes to reference PEHIB instead of SEIB or PEEHIB, reorganizes related boards (Public Education Flexible Employees Benefits Board, Health Care Data Advisory Council, Alabama Prescription Cost Initiative Board) to include PEHIB members, and repeals Section 36-29-2 to complete the governance consolidation; establishes a transition timeline with PEHIB taking over on Jan 1, 2017.

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

Subjects

Insurance