SB402 Alabama 2017 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Clay Scofield
Republican
Session: Regular Session 2017
Title: Local Government Insurance Program, Care Assurance System for the Aging and Homebound authorized to participate, Sec. 11-91A-2 am'd.
Summary: SB402 adds the Care Assurance System for the Aging and Homebound and its affiliated local centers as eligible participants in Alabama's Local Government Health Insurance Program.
What This Bill Does
The bill amends the eligibility rules to authorize the Care Assurance System for the Aging and Homebound and its affiliated local centers to participate in the Local Government Health Insurance Program, subject to board acceptance. It maintains that the program is governed by the Local Government Health Insurance Board and funded by employer contributions (not state funds), and it allows for cost-containment measures and potential fully insured or self-insured plans. It also clarifies withdrawal procedures and consequences for participating entities, and requires the board to set rules for administration with immediate effect upon governor approval.

Who It Affects
Care Assurance System for the Aging and Homebound and its affiliated local centers – become eligible to participate in LGHIP and offer health coverage to their staff and retirees if accepted by the board.
Local government entities and related organizations (e.g., counties, municipalities, fire or water districts, regional planning commissions, and various associations) – may elect to participate in LGHIP if the board accepts them.
Employees, elected officials, retirees, and dependents of participating entities – could receive health insurance benefits under LGHIP; if an entity withdraws, coverage and future participation are affected according to withdrawal provisions.

Key Provisions
Authorizes the Care Assurance System for the Aging and Homebound and its affiliated local centers to participate in the Local Government Health Insurance Program, subject to board acceptance.
Maintains LGHIP governance by the Local Government Health Insurance Board (with rules and administration as prescribed in the chapter).
Funding remains from employer participant contributions (no state funding); participating employers may appropriate funds for premiums and administration.
Eligibility expansion to include entities listed in the bill (existing active participants and, upon board acceptance, additional counties, municipalities, districts, associations, and the Care Assurance System for the Aging and Homebound).
Withdrawal rules require six months’ advance notice; withdrawing entities pay claims incurred before withdrawal and may owe interest on overdue amounts after withdrawal.
Organizations that withdraw cannot provide or administer LGHIP benefits to their staff for two years.
The board must promulgate rules necessary for administering these provisions.
Effective date: immediately after passage and governor 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: Health