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AL SB419
Bill
AI Summary
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Employer contributions for retirees retiring after December 31, 2011 are reduced by 4% for each year of service less than 25 and increased by 2% for each year over 25, with additional reductions based on age at retirement versus Medicare eligibility age.
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Employer contributions may include adjustments and surcharges based on a covered spouse's eligibility for other health insurance coverage.
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Employees and retirees earning up to 300% of federal poverty level receive reduced contribution rates, ranging from 50% to 90% of applicable premiums based on income brackets.
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Employees or retirees who knowingly submit false information or engage in fraudulent activity may be required to repay all plan expenses with interest and can be disqualified from coverage.
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No later than October 1, 2016, the net employer contribution for non-Medicare retirees retiring after December 31, 2011 cannot exceed the employer contribution for an active employee.
Legislative Description
Public Education Employees' Health Insurance Plan (PEEHIP), employees retiring after December 31, 2011, subject to sliding scale premium calculation based on years of service and difference between age of employee at retirement and Medicare entitlement age, limit on employer contribution based on other health insurance of spouse, false information basis for disqualification of coverage, employer contribution for non-Medicare retiree not to exceed contribution for active employee, Secs. 16-25A-1, 16-25A-8.1, 16-25A-17.1, 16-25A-20, 16-25A-22 am'd. (2011-20825)
Public Education Employees' Health Insurance Program
Last Action
Delivered to Governor at 11:58 on June 9, 2011
6/9/2011