HB309 Alabama 2025 Session

Updated Feb 22, 2026

Notable

Summary

Primary Sponsor: Danny GarrettRepresentative
Republican
Session: 2025 Regular Session
Title: Public Education Employees' Health Insurance Board; required to renegotiate contracts for Medicare retiree health benefit plans every five years
Summary: HB309 requires the PEEHIP Board to renegotiate Medicare retiree health plans every five years, while other PEEHIP contracts are renegotiated every three years, all through competitive bidding.
What This Bill Does
The bill changes the renegotiation schedule so Medicare retiree health contracts are reviewed every five years, and non-Medicare contracts every three years, with all contracts awarded on a competitive basis. It allows the board to self-insure if financially advantageous and to use reinsurance with qualified carriers. It also preserves member protections like providing coverage evidence and a formal denial and appeal process for benefit claims.

Who It Affects
Medicare retiree health benefit plan participants (retired Alabama public education employees) – their contracts will be renegotiated on a five-year cycle, which could affect plan options, costs, or coverage at renewal.
PEEHIP Board and the health insurers/administrators that contract to provide or administer PEEHIP plans – they must conduct competitive bidding for contracts, may pursue self-insurance or reinsurance, and may discontinue and replace contracts at the end of a period.

Key Provisions
Renegotiation schedule: Medicare retiree health care contracts must be renegotiated at least every five years; all other contracts must be renegotiated at least every three years; contracts are reevaluated yearly.
Competitive bidding: before entering into contracts, the board must invite competitive bids from all qualified entities and award contracts on a competitive basis considering benefits, administrative costs, costs to employees/retirees/employers, experience, and claims handling; impartial analysts may be used.
Self-insurance option: the board may become self-insured if financially advantageous to the state and plan participants.
Reinsurance: the board may authorize primary contract carriers to reinsure portions of the contract with other qualified carriers.
Member protections: employees and retirees receive evidence of coverage and information about plan benefits and how to use them.
Claims review: the plan must provide denial notices with specific reasons and allow a review process with final determinations within 60 days (extendable by 60 days).
Contract discontinuation: at the end of any contract period, the board may discontinue and replace a contract with another carrier meeting requirements.
Mutual contracts with State Employees' Insurance Board: the board may enter into competitive-bid contracts awarded to the SEIB upon mutual consent.
Effective date: the act becomes effective immediately.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Education