HB136 Summary

• Creates a Local Government Health Insurance Board to govern and administer the Local Government Health Insurance Program, transferring control from the State Employees' Insurance Board effective January 1, 2015.

• Board consists of 8 members: 3 representatives of municipal government, 3 representatives of county government, 1 retired employee, and 1 active full-time employee, with staggered 3-year terms.

• Program funding comes solely from employer participant contributions; entities include counties, municipalities, fire districts, and specified organizations like the Alabama League of Municipalities and Easter Seals Alabama.

• Employer participants can withdraw by submitting a resolution 6 months in advance and remain liable for unpaid claims at 1.5% monthly interest; withdrawn entities cannot receive benefits from any board contractor for 2 years.

• Board has authority to establish health insurance plans, set premiums, solicit competitive proposals from carriers, and maintain separate fund accounts; employees are not subject to state Merit System but receive equivalent benefits.