SB408 Alabama 2017 Session

Summary

Primary Sponsor

Tom Whatley

Republican

Session

Regular Session 2017

Title

State Employees' Insurance Board, Legislature, and Lt. Governor, 36-month limitation deleted, coverage upon expiration of office, extended if served certain period of time and person pays premiums, provisions prohibiting coverage of preexisting conditions deleted, Sec. 36-29-15 am'd.

Summary

SB408 would remove the 36-month limit on health coverage after a term of office for Alabama lawmakers and the Lieutenant Governor, allow eligible former officeholders who served two full terms to keep coverage by paying premiums, and remove the blanket ban on preexisting conditions (with a 12-month waiting period).

What This Bill Does

It would delete the 36-month continuation cap for State Employees' Health Insurance Plan coverage after term expiration. It would allow former legislators or the Lieutenant Governor who served at least two four-year terms to obtain or continue coverage after leaving office if they pay the premiums. It would remove prohibitions on preexisting-condition coverage, but would require a 12-month period before such conditions are covered (with some grandfathered enrollment exceptions). The premiums would be paid by the individual, and the State Employees' Insurance Board would administer the changes. The act would take effect January 1, 2018.

Who It Affects

• Current and former members of the Alabama Legislature and the Lieutenant Governor, who could obtain or continue health insurance coverage after leaving office if they meet term requirements and pay premiums.
• Dependents of those legislators and the Lieutenant Governor who are covered under the State Employees' Health Insurance Plan.
• The State Employees' Insurance Board, which would implement and administer the revised coverage rules.

Key Provisions

• Deletes the 36-month limit on continuing State Employees' Health Insurance Plan coverage after expiration of a term of office.
• Allows eligibility for continued or new coverage after expiration for legislators or the Lieutenant Governor who have served at least two full four-year terms, provided they pay the premiums and comply with plan terms.
• Removes the prohibition on coverage of preexisting conditions, replacing it with a rule that preexisting conditions are not covered until the insured has 12 months of coverage, with certain grandfathered enrollments exempt.
• Requires individuals (legislator, Lieutenant Governor) to pay their own premiums for the coverage; The State Employees' Insurance Board would promulgate rules to implement the changes.
• Effective date: January 1, 2018.

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

Subjects

State Employees' Insurance Board