Local Government Health Insurance Board

What Local Government Health Insurance Board does

The Local Government Health Insurance Board (LGHIB) is an Alabama state government entity that administers a self-insured group health insurance plan for local government employees, retirees, and their dependents. Created by the Alabama Legislature in 1993 and governed by a nine-member Board appointed by the League of Municipalities, the Association of County Commissions of Alabama, the Alabama Retired State Employees Association, and elected member representatives, LGHIB was formally established as a standalone governing body in 2015 after administration transferred from the State Employees' Insurance Board. The Plan serves more than 60,000 covered lives across nearly 700 participating employer units spanning counties, municipalities, fire and water districts, regional planning commissions, and other local government entities in Alabama.

The product surface is delivered entirely through a partner ecosystem: medical and dental coverage is administered through Blue Cross and Blue Shield of Alabama, prescription drug benefits through Prime Therapeutics (effective January 1, 2025) with specialty pharmacy via Accredo, a custom UnitedHealthcare Group Medicare Advantage PPO for retirees, voluntary vision/dental/cancer through Southland Benefit Solutions, and digital wellness programs including Doctor on Demand (virtual care), Hinge Health (MSK and pelvic health), Virta Health (diabetes), and Wondr Health (weight loss). Member-facing tooling consists of the myBlueCross portal, MyPrime portal, and the Alabama Blue mobile app, alongside an annual benefit-administrator conference, a quarterly newsletter (The Local Pulse), and the Covered Conversations podcast.

LGHIB is funded by recurring monthly premium contributions from participating employer units, with rate tiers differentiated by participation duration, wellness participation (80% screening threshold), and payment history. Standard and preferred rate cards are published publicly; retiree premiums are claims-experience-rated. Because the Plan is self-insured, premium revenue is largely pass-through to claims, with margin retained only for administrative operations. The organization operates with a small staff (11-50 employees including the Board) out of Montgomery, AL, and is not a privately held or publicly traded company — it has no parent entity, no funding rounds, and no M&A history.

Name

Local Government Health Insurance Board

Legal name

Local Government Health Insurance Board

Website

https://lghip.org

Company type

Private

Founded year

2015

Operating status

Operating

Headcount range

11–50 employees

Short description

The Local Government Health Insurance Board (LGHIB) is an Alabama state-chartered entity that administers a self-insured group health insurance plan for active and retired employees of nearly 700 local government entities, covering 60,000+ lives through BCBS, Prime Therapeutics, and UnitedHealthcare partnerships.

Ownership category

akta.pro rank

Product category

Government Health Insurance Administration

NAICS

Health and Welfare Funds (525120), Direct Health and Medical Insurance Carriers (524114), Pharmacy Benefit Management and Other Third Party Administration of Insurance and Pension Funds (524292)

SIC

Accident & Health Insurance (6321), Hospital & Medical Service Plans (6324)

akta.pro primary industry

Public Sector & Government Employer Group Health Plans (FSAIAFAF)

akta.pro secondary industry

Self-Funded (ERISA) Employer Plans (HLAEAAAC)

Keywords

• Government health insurance
• Group health benefits
• Public sector insurance
• Employee benefits administration
• Retiree healthcare coverage

Headquarters

HQ city

Montgomery

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Personnel, Technology or R&D, Marketing or Sales, Infrastructure, Others

Revenue model

1. Premium Contributions: Self-insured group health insurance plan funded through premium contributions from participating local government employer units. Premiums are collected monthly from units covering active employees, retirees, and their dependents.

Pricing tiers

Go-to-market motion1 record

Distribution channels2 records

Marketing channels6 records

Core offering

The Local Government Health Insurance Board (LGHIB) administers a self-insured group health insurance plan for employees, retirees, and dependents of Alabama local government entities. It funds coverage through monthly premium contributions from participating employer units and delivers medical, dental, vision, pharmacy, Medicare Advantage, voluntary supplemental, and wellness benefits through contracted healthcare partners including Blue Cross and Blue Shield of Alabama, Prime Therapeutics, UnitedHealthcare, and Southland Benefit Solutions.

Product overview

The Local Government Health Insurance Board (LGHIB) operates a comprehensive, self-insured group health insurance program for local government employees across Alabama. Created by the Alabama Legislature in 1993 and administered by a nine-member Board, the Plan serves more than 60,000 active and retired local government employees and their dependents. The core product portfolio includes medical insurance plans administered through Blue Cross and Blue Shield of Alabama, prescription drug benefits managed by Prime Therapeutics (as of January 2025), and UnitedHealthcare Medicare Advantage plans for retirees. LGHIB also offers voluntary supplemental benefits through Southland Benefit Solutions including vision, dental, and cancer plans. The wellness ecosystem encompasses multiple digital health programs including Hinge Health (musculoskeletal and pelvic health), Virta Health (diabetes management), Wondr Health (weight loss), Doctor on Demand (virtual healthcare), and Baby Yourself (maternity management). Specialty pharmacy services are provided through Accredo Specialty Pharmacy with the FlexAccess copay assistance program. The organization provides member-facing digital tools including myBlueCross, MyPrime member portals, and the Alabama Blue mobile app, along with educational resources like the Covered Conversations podcast and The Local Pulse quarterly newsletter.

Differentiator

Problem solved

Functional benefit

Products and services

• Medical Insurance Plans Self-insured group medical insurance plans providing comprehensive coverage for active employees, retirees, and dependents of Alabama municipalities, counties, and quasi-governmental agencies. Plans are administered in partnership with Blue Cross and Blue Shield of Alabama.
• Dental Insurance Plans Group dental benefit plans providing preventive, basic, and major services coverage for active employees, retirees, and dependents. Includes no-cost preventative services, low deductible options ($0 Individual / $25 Family), and coverage up to 80% for basic and major services.
• Prime Therapeutics Pharmacy Benefits Prescription drug benefits administered by Prime Therapeutics as the plan's pharmacy benefit manager since January 1, 2025. Includes retail pharmacy network, specialty pharmacy through Accredo, mail order options, and a tiered formulary with copay and coinsurance structures.
• UnitedHealthcare Medicare Advantage Plan Custom UnitedHealthcare Group Medicare Advantage (PPO) plan designed exclusively for eligible LGHIB retirees and their Medicare-eligible dependents. Provides benefits beyond Original Medicare with 4.5-star CMS rating for 2026, telephonic nurse support, virtual visits, HouseCalls program, and clinical resources.
• Southland Voluntary Vision Plan Voluntary vision plan covering eye examinations, eyeglass frames, prescription lenses, contacts, and refractive surgery with no provider network requirements. Single premium: $12/month; Family: $20/month.
• Southland Voluntary Dental Plan Voluntary dental plan with no-cost preventative services, no and low deductible options, and basic and major services covered up to 80%. Single premium: $44/month (no deductible); Family: $44/month ($25 deductible).
• Southland Voluntary Cancer Plan Voluntary cancer insurance covering surgeries, treatments, and related services for certain cancer types. Family premium: $24/month. Includes hospital confinement ($350/day), hospice care, radiation/chemotherapy, and cancer surgery coverage.

Named customers1 record

Segments1 record

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration18 records

Partnerships

13 partnerships are on record, tiered core and minor.

• Blue Cross and Blue Shield of AlabamacoreTechnology or IntegrationPrimary medical and dental insurance provider for LGHIB members. Provides comprehensive health coverage through the myBlueCross member portal, claims processing, provider networks, and wellness programs.
• Prime TherapeuticscoreTechnology or IntegrationPharmacy benefit manager (PBM) effective January 1, 2025. Manages prescription drug benefits, formulary, specialty pharmacy through Accredo, and direct member reimbursement processes. Operates retail pharmacy network including national chains and independent pharmacies.
• UnitedHealthcarecoreTechnology or IntegrationProvides custom Group Medicare Advantage (PPO) plan exclusively designed for eligible LGHIB retirees and their Medicare-eligible dependents. Offers 4.5-star rated plan (2026) with telephonic nurse support, virtual visits, HouseCalls program, and clinical resources.
• Southland Benefit SolutionscoreTechnology or IntegrationProvides voluntary vision, dental, and cancer insurance plans for LGHIB members. Includes Southland TruHearing discount program for members enrolled in vision or dental plans.
• Blue365minorChannel Partner/ Reseller/ DistributorFree health and wellness discount program offered through BCBS system. Provides year-round discounts on gym memberships, fitness gear, healthy eating options, apparel, footwear, hearing, vision, nutrition, personal care, and travel.
• TruHearingminorChannel Partner/ Reseller/ DistributorHearing discount program through Southland Benefit Solutions. Utilizes network of 7,000+ credentialed provider locations. Includes free online hearing screening, 60-day trial period, 3-year warranty, and 80 free batteries per hearing aid.
• EyeMed Vision Discount ProgramminorChannel Partner/ Reseller/ DistributorVision discount program provided through Blue365. Offers discounts on eye exams, frames, lenses, and lens add-ons at participating EyeMed providers nationwide.
• Quit Now AlabamaminorChannel Partner/ Reseller/ DistributorTobacco cessation program offering free master's level counseling and up to four weeks of free nicotine replacement therapy patches. LGHIB reimburses 80% of program costs with no deductible, lifetime maximum benefit of $150.
• YMCAminorChannel Partner/ Reseller/ DistributorDiscount program available to LGHIB members through the wellness program. Provides access to YMCA facilities and programs at discounted rates.
• Baby YourselfminorChannel Partner/ Reseller/ DistributorMaternity management program through Blue Cross Blue Shield of Alabama. Monitors mom and baby throughout pregnancy. Delivery copay waived when enrolled before end of second trimester.
• Alabama League of MunicipalitiescoreStrategic or Co-development PartnerAppoints three members to the nine-member LGHIB Board. Supports municipalities across Alabama. Partner in Live Locally Alabama campaign providing cost-saving measures to municipalities.
• Association of County Commissions of AlabamacoreStrategic or Co-development PartnerAppoints three members to the nine-member LGHIB Board. Provides educational, technical, legal, legislative, and public policy resources to support counties across Alabama.
• Alabama Retired State Employees AssociationcoreStrategic or Co-development PartnerAppoints one member to the nine-member LGHIB Board. Represents retired state employees' interests in healthcare coverage decisions.

Scale indicators4 records

Recent moves7 records

Expansion highlights5 records

Direct peers

• CalPERS Health Benefits: California Public Employees' Retirement System (CalPERS) administers health benefits for California state and local government employees and retirees. Like LGHIB, it is a statutorily created government entity operating self-funded/fully insured health plans with employer-unit and retiree segments, offering medical, pharmacy, dental, and vision through contracted partners. It is the largest comparable public-sector health plan in the U.S.
• Washington State Health Care Authority: HCA administers the Public Employees Benefits Board (PEBB) and School Employees Benefits Board (SEBB) programs, providing health insurance to Washington state and local government employees. It is a comparable state agency operating self-funded health plans with employer-unit enrollment, retiree coverage, and integrated wellness programs.
• Oklahoma State and Education Employees Group Insurance Board: OSEIGIB administers health insurance benefits for Oklahoma state, education, and local government employees and retirees. As a comparable legislatively created state entity managing self-funded health plans, retiree coverage, and pharmacy benefits through third-party administrators, it closely mirrors LGHIB's structural and operating model.
• Georgia State Health Benefit Plan: Georgia Department of Community Health SHBP administers health coverage for Georgia state employees, teachers, and public school employees. It is a directly comparable state-government-administered health plan with employer-unit enrollment, retiree coverage options, and tiered plan designs structured around commercial carrier partnerships.
• Tennessee State Group Insurance Program: Tennessee State Group Insurance Program (Partners for Health) administers health coverage for Tennessee state and local government employees, teachers, and retirees. It is a comparable state-government-administered self-funded health plan with employer-unit enrollment, retiree coverage, and tiered wellness incentives.
• Florida Department of Management Services, Division of State Group Insurance: Florida's Division of State Group Insurance administers health benefits for Florida state employees, with optional local government participation. As another state-government-administered health plan operating self-funded/fully insured benefits through commercial carriers, it is a closely comparable peer in structure and delivery model.
• Texas Employees Group Benefits Program: Texas Employees Retirement System (ERS) administers the State of Texas Group Benefits Program for state employees and retirees. It is a directly comparable state-government-administered health and welfare benefits program offering medical, dental, vision, and pharmacy benefits through commercial carriers, with retiree-specific plan designs.
• North Carolina State Health Plan: North Carolina State Health Plan administers health coverage for North Carolina state and local government employees, teachers, and retirees. It is a comparable state-government-administered self-funded health plan with employer-unit enrollment, retiree segments, and tiered wellness-incentivized plan designs — directly mirroring LGHIB's structural model.

Regional players

• State Employee Group Insurance Program (SEGIP) Alabama: Alabama State Employees' Insurance Board (SEIB) administers the State Employee Group Insurance Program for active and retired Alabama state employees. Notably, SEIB administered the local government plan from 1993-2014 before LGHIB's 2015 establishment. It is a structurally analogous sister agency operating in the same state with similar self-funded health, pharmacy, and voluntary benefits offerings.
• Public Risk Innovation, Management, and Education (PRIME): PRIME is a self-funded risk management and insurance pool for public agencies, primarily in California. While it focuses on property/liability rather than health, its pooled self-insurance structure for public entities is conceptually analogous to LGHIB's self-funded local government health plan model — making it an emerging adjacent peer in public-sector pooled benefits.

Market position

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

• YouTubeyoutube.com/channel/UCfTDB0UjrsZh5SMEmPRv0vg
• LinkedInlinkedin.com/company/local-government-health-insurance-board

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Local Government Health Insurance Board