The State Employees' Health Insurance Plan (SEHIP) is basic medical coverage available
to State employees and their eligible dependents. It is intended to help you and your
covered dependents pay for the costs of medical care.
The SEHIP Handbook provides information regarding the State Employees' Health Insurance Plan.
Some of the topics covered in the SEHIP Handbook:
Prescription Drug List
Preventive Care Medications
Summary of Benefits and Coverage
The Summary of Benefits and Coverage (SBC) is a short summary of coverage designed by the Department of Health and Human Services.
The SBC provides a snapshot of coverage but does not contain all benefits, limits and exclusions provided to you.
The SBC does not replace the more detailed summary of benefits found in the plan benefit matrix or a plan
benefit booklet provided to you by the SEIB. For detailed plan benefits please view our handbook listed above.
The State Employees’ Health Insurance Plan (SEHIP) is a self-insured employer group
health benefit plan. This means that the State of Alabama assumes the risk of providing
health care benefits for its employees instead of paying a risk premium to a third party to
provide health insurance coverage.
The State Employees’ Insurance Board (SEIB) is a state agency established by the
Alabama Legislature to administer the SEHIP pursuant to Alabama Code Sections
36-29-1 through 36-29-19.8.
The membership of the SEIB is composed of 11 members pursuant to Alabama Code
Section 36-29-2. The members include the five members of the State Personnel Board,
the Director of Finance, the Secretary-Treasurer of the Employees' Retirement System of
Alabama, two elected active employees of the state and two elected retirees covered under
The cost of providing health care benefits is simply a function of the amount of claims
incurred by our members and paid by the SEHIP to the providers of service (plus administrative costs).
The cost to administer the SEHIP is less than 5% of total expenses. This means that more than 95 cents of
every dollar expended on the SEHIP goes directly to paying member claims. Administrative
costs are primarily composed of amounts paid to BCBS and OptumRx to process claims,
SEIB personnel costs and consulting fees.