Legislative Update - November 8, 2004

Legislature to Convene Special Session

The Alabama legislature will convene a Special Session today to consider five (5) bills aimed at reforming the health insurance programs for state employees (SEHIP) and education employees (PEEHIP). Two measures in the proposed package of bills, if passed in their present form, will affect future university retirees.One proposed change would tie the out of pocket cost for retirees’ health insurance to the number of years worked. University employees who retire after September 30, 2005 with less than 25 years of service will face an out of pocket increase of 2% per year for each year under 25. However, this bill would also decrease out of pocket cost for retirees by 2% per year for each year over 25.A second measure would require retirees who become employed with another employer to utilize the employer’s health coverage as their primary coverage provided that the employer contributes 50% or more to the coverage. The retiree can still use SEHIP or PEEHIP as secondary coverage.

The session could last 5 days, however it could take 2 weeks.