Alabama Legislative Act 1965-833 established the State Employees’ Insurance Board (SEIB) in 1965. Its current operating authority can be found in the Alabama Code § 36-29-1, et seq. (1975). The SEIB was 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 the State Employees’ Health Insurance Program (SEHIP) and Flexible Employees’ Benefit Plan.

Mission Statement

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.

State Employees’ Health Insurance Plan

The SEIB serves as the Plan Administrator for the SEHIP. The SEHIP is a self-insured comprehensive health benefit plan serving approximately 90,000 active and retired state employees and their dependents. As Plan Administrator, the SEIB is primarily responsible the control and supervision for the SEHIP. 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. Contracts are awarded by the SEIB after a competitive, nationwide proposal 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. Among others, BCBS also performs the following functions:

• Customer service,
• Provider network design and service,
• Case management,
• Utilization review,
• Pharmacy benefit management.

Flexible Employees’ Benefits Plan

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:

• Health Care Reimbursement Account - allows state employees to set aside tax-free dollars from each paycheck to pay medical expenses not covered by health insurance (deductibles and copays) for themselves and their dependents.
• Dependent Care Reimbursement Account - allows state employees to set aside tax-free dollars from each paycheck to pay for eligible day care expense for their children.
• The Premium Conversion Plan - allows state employees to pay for their dependent health insurance premium with pre-tax dollars.

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 ConnectYourCare and Erisa to process claims.