HB177 Alabama 2017 Session

Summary

Primary Sponsor

Phillip PettusRepresentative

Republican

Session

Regular Session 2017

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Benefits Board, the Healthcare Data Advisory Council, and the Alabama Prescription Cost Initiative, Sec. 36-29-2 repealed; Secs. 9-10A-20, 11-91-8, 11-91A-1, 11-91A-2, 11-91A-4 to 11-91A-7, inclusive, 12-5A-9, 16-13-231, 16-25A-1, 16-25A-2, 16-25A-2.1, 16-25A-3, 16-25A-7,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

HB177 would consolidate governance of both state and public education health plans under a single Public Employees' Health Insurance Board.

What This Bill Does

It creates the Public Employees' Health Insurance Board (PEHIB) to govern both health plans, replacing the current SEIB and PEEHIB. It sets PEHIB's membership and how members are elected or appointed, granting it the authority to administer and operate the two plans. It revises membership on related boards to add PEHIB members and remove former SEIB/PEEHIP members, moves governance of retiree health care trusts under PEHIB, and repeals the existing SEIB framework with a transition date of January 1, 2018.

Who It Affects

• Active and retired state employees who participate in the State Employees' Health Insurance Plan (SEIB) would be governed by PEHIB.
• Active and retired public education employees who participate in the Public Education Employees' Health Insurance Plan (PEEHIP) would be governed by PEHIB.
• Retirees and dependents covered by the Alabama Retired State Employees' Health Care Trust and the Alabama Retired Education Employees' Health Care Trust would be governed by PEHIB.
• Local government health insurance participants and their employees/retirees would experience governance changes as PEHIB takes over and as related boards adjust membership.
• Members of the Public Education Flexible Employees Benefits Board, Health Care Data Advisory Council, and the Alabama Prescription Cost Initiative Board would have PEHIB members added and former SEIB/PEEHIP members removed.

Key Provisions

• Establish PEHIB to govern both the State Employees' Health Insurance Plan and the Public Education Employees' Health Insurance Plan, consolidating oversight previously handled by SEIB and PEEHIB.
• Specify PEHIB's composition, including state-level ex officio officials and elected/public employee representatives, with terms and qualifications for appointed and elected members.
• Grant PEHIB full authority to administer, operate, contract for administration, set rates, manage funds, and oversee claims for the two health plans, including establishing a state health insurance fund as needed.
• Move governance of the Alabama Retired State Employees' Health Care Trust and the Alabama Retired Education Employees' Health Care Trust to PEHIB and outline how these trusts will be funded and managed for post-employment benefits.
• Amend numerous state laws to refer to PEHIB instead of SEIB or PEEHIP, revise related board memberships to include PEHIB, and set a transition date (January 1, 2018) for PEHIB to assume full duties.

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