HB20 Alabama 2017 Session

Summary

Primary Sponsor

Tommy Hanes

Republican

Session

Regular Session 2017

Title

PEEHIP, amount certified to Governor and Legislature required to be sufficient to fund ensuing year, only if appropriated less than amount requested may board increase costs to consumer or reduce coverage, Sec. 16-26A-8 am'd.

Summary

HB20 would require PEEHIP to certify funding for the next year at current-year levels and allow changes to costs or coverage only if the Legislature underfunds that amount.

What This Bill Does

HB20 requires the Public Education Employees' Health Insurance Plan (PEEHIP) to certify the amount needed to fund the following year’s benefits at the same level as the current year, with no increases to co-pays, deductibles, fees, surcharges, or premiums, and no reduction in benefits. The Legislature would set the premium rate in the annual appropriation bill, but PEEHIP could only raise costs or reduce coverage if the Legislature appropriates less than the certified amount. If the Legislature funds the certified amount, PEEHIP would maintain current benefits and cost structures for the next year. The bill also describes how funds are collected and deposited into the PEEHIP Fund to pay for these benefits.

Who It Affects

• Active and retired PEEHIP members: their premiums, deductibles, co-pays, and benefits would stay at the current-year levels unless the Legislature underfunds the certified amount.
• PEEHIP Board and the Alabama Legislature: they certify funding and decide appropriations; underfunding by the Legislature would allow changes to costs or benefits.

Key Provisions

• Certification of funding: PEEHIP must certify the amount necessary to fund benefits for the following year at the same level as the current year, without increases in co-pays, deductibles, fees, surcharges, premiums, or reductions in benefits.
• Changes limited to underfunding: PEEHIP may not increase co-pays/deductibles or impose/increase fees, surcharges, or premiums, or reduce benefits unless the Legislature appropriates less than the certified amount.
• Premiums set by appropriation: the Legislature must set the premium rate in the annual appropriation bill.
• Fund management: premiums go into the Public Education Employees' Health Insurance Fund, managed by a board, with funds used to pay benefits in accordance with contracts.

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

Subjects

Public Education Employees' Health Insurance Program