Bill > SB195

This bill modifies the existing law governing the Public Education Employees' Health Insurance Board by updating the board's contract negotiation and review processes. Specifically, the bill requires the board to reevaluate contracts yearly and renegotiate most contracts every three years, with a new provision mandating that Medicare retiree health care contracts specifically must be renegotiated on a competitive basis at least every five years. The bill also makes several minor language adjustments, such as changing "is hereby authorized to" to "may" and clarifying procedural language around contract bidding, review, and selection. The changes aim to ensure more regular competitive review of health insurance contracts, with particular attention to Medicare retiree healthcare plans, which will now have a mandatory five-year competitive renegotiation requirement. The bill allows the board to continue inviting competitive bids, evaluating contracts based on factors like benefits, administrative costs, employee expenses, and the insurance provider's experience, and maintains the board's flexibility to change carriers at the end of contract periods.

Budget and Finance

https://alison.legislature.state.al.us/bill-search