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, as opposed to the previous unspecified timeline. Additionally, the board is mandated to reevaluate all other contracts on a yearly basis and renegotiate them on a competitive basis at least every three years. The language of the bill also modifies the board's authority to execute contracts, shifting from "is hereby authorized to" to "may," and clarifies that the board may become self-insured if deemed financially advantageous.

Other notable amendments include the requirement for the board to provide adequate written notice to participants whose claims for benefits have been denied, detailing the reasons for denial and allowing for a review process. The bill also allows the board to discontinue contracts with any carrier at the end of a contract period and replace them with new contracts from other qualified carriers. The act is set to take effect immediately upon passage.