HB334 Alabama 2018 Session

Summary

Primary Sponsor

Prince ChestnutRepresentative

Democrat

Session

Regular Session 2018

Title

Local Government Health Insurance Board, optional health coverages or services including on-the-job injuries, coverage authorized, Sec. 11-91A-7 am'd.

Summary

HB 334 would empower the Local Government Health Insurance Board to add optional health coverages and to administer payments for on-the-job injury health services for employer participants in the Local Government Health Insurance Program.

What This Bill Does

It authorizes the board to provide additional optional coverages or services, including administering payment for health care services when an employee or official is injured on the job. It allows the board to contract with licensed agencies to run programs, set and adjust rates and actuarial functions, and manage a dedicated Local Government Health Insurance Fund. It also lets the board borrow money, pursue legal action to recover premiums or improper payments, and establish rules for benefits and program operations. Participation in the on-the-job injury administration is optional for employers and does not affect eligibility for the program or rate setting.

Who It Affects

• Local government employers participating in the Local Government Health Insurance Program; they may opt into the on-the-job injury administration and will be subject to rates and coverage decisions made by the board.
• The Local Government Health Insurance Board and any contracted agencies or firms that administer the program, manage funds, set rates, and handle legal actions and claims.

Key Provisions

• Amends Section 11-91A-7 to authorize additional types of optional health coverages or services, including administration of on-the-job injury payments for employer participants.
• Authorizes the board to contract with one or more licensed agencies or corporations to administer the program and perform common administrative functions.
• Allows the board to establish and adjust rates, rate schedules, expense allowances, and actuarial functions; rates may reflect factors such as age, family size, tobacco use, preventive/wellness participation.
• Creates and maintains a Local Government Health Insurance Fund with dedicated state-depository accounts; funds pay administrative expenses, medical claims, and reserves, not co-mingled with other funds.
• Authorizes borrowing of money and legal actions to recover premiums, avoid improper claims, recover overpayments, and collect amounts due to the board.
• Empowers the board to promulgate rules on benefits selection and other matters necessary for program administration.
• Allows the board to employ a CEO and other staff, with compensation paid from board funds; employees may participate in state health care and retirement systems.
• Provides for reinsurance and other standard insurance operations.
• Specifies that employer participation in on-the-job injury administration is optional and does not affect program eligibility or rate setting.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Local Government Health Insurance Board