Alabama Legislative Act 1965-833 established the State Employees’ Insurance Board
(SEIB) in 1965. Its current operating authority can be found in Section 36-29 Code
of Alabama 1975. The SEIB was initially empowered by the Legislature to establish
a health insurance plan for State employees. The eleven-member Board is composed
of the five members of the State Personnel Board, the Director of the Finance Department,
the Secretary-Treasurer of the Employees’ Retirement System of Alabama, two elected
active state employees and two elected retired state employees.
The SEIB is an agency of the State of Alabama and is responsible for various aspects
of the administration of four benefit plans and programs: State Employees’ Health
Insurance Program (SEHIP), Local Government Health Insurance Program (LGHIP), Flexible
Employees’ Benefit Plan and Alabama Health Insurance Plan (AHIP).
The State Employees' Insurance Board's mission is to provide a comprehensive healthcare
benefit package that will recruit and retain quality employees while maintaining a balance
between the needs of the employee and the cost to the taxpayer.
The SEIB serves as the Plan Administrator for the SEHIP and the LGHIP. These are
self-insured comprehensive health benefit plans serving approximately 120,000 active
and retired State and local government employees and their dependents. As Plan Administrator,
the SEIB is primarily responsible the control and supervision for the SEHIP and
the LGHIP. The SEIB is also responsible for designing benefits and setting premiums.
The SEIB contracts with third parties to carry out various functions of the SEHIP
and the LGHIP. Contracts are awarded by the SEIB after a competitive, nationwide
bid process. The SEIB currently contracts with Blue Cross Blue Shield of Alabama (BCBS)
as Claims Administrator.
BCBS’ primary function is to processes all claims for the SEHIP and the LGHIP.
Among others, BCBS also performs the following functions:
The Flexible Employees’ Benefit Board (FEBB) administers the Flexible Employees’
Benefits Plan offered to state employees. Flexible Employees’ Benefits are available
to the employees of the State of Alabama pursuant to Code of Alabama, Section 36-29-20
through 30 as last amended and Internal Revenue Code of 1986 Sections 105, 125 and
129. The IRS regulations enable employees to pay premiums and pay for eligible health
care and dependent care expenses with payroll deductions before state and federal
taxes are applied. Three benefit options are offered to state employees:
The FEBB contracted with the SEIB to conduct the day-to-day activities of the Flexible
Employees’ Benefits Plan. The SEIB is primarily responsible for enrollment and accounting
functions. The FEBB also contracted with Blue Cross Blue Shield of Alabama and Erisa
to process claims.
Alabama Health Insurance Plan (AHIP) was established by the Alabama legislature
Pursuant to Alabama Act No. 97-713 (Senate Bill 688, 1997 Regular Legislative Session).
The AHIP is a high risk pool established to provide health insurance coverage to
eligible individuals as an alternative to federal oversight required in the Health
Insurance Portability and Accountability Act of 1996 (H. R. 3103).
Pursuant to Alabama Act 2014-219, the Alabama Health Insurance Plan ceased operations
as of July 1, 2014.