HB649 Summary

• Amends Alabama Code Sections 36-29-1, 36-29-10, and 36-29-19.7 relating to the State Employees' Health Insurance Plan.

• Requires that for employees retiring after September 30, 2010, the retiree sliding scale premium calculation be based only on years of coverage in the State Employees' Health Insurance Plan, time served in the United States Armed Forces, or service as an employee as defined in Sections 16-25A-1 and 16-25A-11 of the Alabama Code.

• Effective October 1, 2010, limits the employer contribution for non-Medicare retirees retiring after September 30, 2010, to not exceed the amount of the employer contribution for active employees.

• The sliding scale premium calculation remains unchanged, reducing employer contribution by 2 percent for each year of service coverage under 25 years and increasing by 2 percent for each year over 25 years.

• Becomes effective on the first day of the third month following passage and approval by the Governor.