The bill amends Section 16-25A-7 of the Code of Alabama 1975, specifically regarding the Public Education Employees' Health Insurance (PEEHIP) Board's contract management for health benefit plans. Key changes include the requirement for the board to renegotiate contracts for Medicare retiree health benefit plans every five years, while all other contracts must be renegotiated at least every three years. The language of the bill modifies the board's authority to execute contracts, allowing for a more competitive bidding process and the potential for self-insurance if deemed financially advantageous.

Additionally, the bill clarifies the board's responsibilities in terms of providing coverage information to employees and retirees, ensuring adequate notice for denied claims, and establishing a review process for such denials. The board is also granted the authority to discontinue existing contracts and replace them with new ones as necessary. The act is set to take effect immediately upon passage.