SB195 Alabama 2025 Session

Summary

Primary Sponsor

Arthur OrrSenator

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

SB195 would change how often Medicare retiree health benefit contracts are renegotiated under PEHIP from every three years to every five years, while keeping competitive bidding and regular reviews for other contracts.

What This Bill Does

It amends the law to require renegotiation of Medicare retiree health care contracts every five years. It requires competitive bidding for entering into PEHIP contracts and yearly reevaluation of all contracts, with most contracts renegotiated at least every three years and Medicare retiree contracts at least every five years. It allows the board to become self-insured if it’s financially advantageous, and to reinsure portions of contracts with other qualified carriers. It preserves notice and appeal rights for participants and allows the board to discontinue or replace contracts and to enter into certain cross-agency contracts by mutual consent.

Who It Affects

• Public Education Employees and their covered dependents, who will receive coverage documents, benefit details, and claim information under PEHIP.
• Insurance carriers/administrators bidding on PEHIP contracts (and potential reinsurers), who would compete for contracts, may be asked to provide bids, and could be selected, replaced, or participate in self-insured arrangements.

Key Provisions

• Renegotiation of Medicare retiree health care contracts every five years (instead of three).
• Competitive bidding required before entering into PEHIP contracts; contracts evaluated on benefits, admin costs, costs to participants, company experience, and claims handling; independent analysts may be used.
• Annual reevaluation of all contracts; renegotiation on a competitive basis at least every three years for non-Medicare retiree plans; five-year cycle for Medicare retiree health care.
• Board may become self-insured if financially advantageous and may reinsure portions of contracts with qualified carriers.
• Contracts can be discontinued and replaced at the end of contract periods; board may contract with State Employees' Insurance Board contracts through mutual consent.

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