Alabama Board Turns Down Health Insurance for State Senators

A state insurance board rejected the Alabama Senate’s attempt to get state-funded health insurance Wednesday, but said the Legislature could reapply if it follows the proper steps.

In the closing hours of its last session on June 7, the Senate passed a resolution by an unrecorded voice vote to seek coverage through an insurance program operated by the State Employees Insurance Board.

On Wednesday, state Finance Director Jim Main, a member of Gov. Bob Riley’s Cabinet, urged the board to reject the resolution, and the board voted 9-1 to do that.

Board members said they need a resolution passed by both houses of the Legislature for the application for insurance to be official.

“I think that will be coming,” said the resolution’s sponsor, Sen. E.B. McClain, D-Midfield.

Neither McClain nor any other senator attended the board meeting. They were represented by top members of the Senate staff.

McClain said other Southern states provide publicly funded health insurance for their legislators and Alabama should do the same.

“I don’t think we are any less important than any other state,” he said in a phone interview.

House Minority Leader Mike Hubbard, R-Auburn, said he will fight the insurance proposal if it comes up in the House in the next session starting Feb. 5.

“The Legislature is a part-time job. How many jobs do you know that provide health insurance to part-time workers?” he said in a phone interview.

Senate Minority Leader Jabo Waggoner, R-Vestavia Hills, said he expects Republicans to oppose any insurance resolution and push for a recorded vote on it.

Currently, all legislators can get state insurance coverage provided they pay the full cost, but few pay the $640-per-month cost for family coverage. Out of the 139 legislators, there are 33 who do have state-funded health insurance because they or their spouses work for a public school or college.

Getting state-funded insurance would give each senator a benefit worth $5,520 a year for the family coverage, based on the current costs.

The State Employees Insurance Board is an 11-member board of state officials, state Personnel Board members and elected representatives of active and retired state workers. It oversees insurance programs for active and retired state employees and many city and county governments.

Board Chairman Joe Dickson said he was concerned about the Senate passing the health insurance resolution “under the cover of darkness” after the Legislature gave itself a 61 percent raise at the start of the session.

But another board member, state pension chief David Bronner, said, “They have a right to join in.”

While Bronner voted to reject the Senate’s efforts for technical reasons, he said the board should not anger legislators because they are the only ones who can solve a long-term financial problem faced by the state: How to build a trust fund to cover the anticipated $20 billion in costs for health insurance coverage for retired state employees and education workers?

“This is the only group in the state that can solve the problem,” Bronner said.

McClain said not to worry.

“I don’t see a backlash from the Legislature’s standpoint,” he said.