Premium Assistance Program
Premium Assistance Program
PEEHIP can provide some assistance to its members by giving a discount on Hospital Medical premiums based on (1) family size and (2) total combined household income.
To apply for this discount, PEEHIP members must submit the Premium Assistance Application (PAA) and furnish a copy of their current year filed Federal Income Tax Return Transcript. If married filing separately, they must also furnish a copy of their spouse's current year filed Federal Income Tax Return Transcript. Click here to view a sample Tax Return Transcript.
Active and retired members may apply. The discount will be effective the first day of the second month after PEEHIP’s receipt and approval of the application. The discount only applies to Hospital Medical premiums and is for the current plan year only. Members must reapply each plan year.
The discount does not apply to the tobacco premium or wellness premium for those who are subject to these premiums. The discount does not apply to members on a Leave of Absence, COBRA, or surviving dependent contract.
How to Apply for Premium Assistance:
- Estimate eligibility for the discount using the household income table found on the Premium Assistance Application (PAA).
- If eligible, the Premium Assistance Application must be filled out completely and must be signed by you and your spouse (if married).
- You must provide a copy of your current year filed Federal Income Tax Return Transcript when you send the application to PEEHIP. If you were married and filed taxes separately, you must also include a copy of your spouse's current year filed Federal Income Tax Return Transcript. Include ALL pages of the transcript(s). There is no charge to get your transcript from the Internal Revenue Services (IRS). Click here to view a sample Tax Return Transcript.
- To receive your free Federal Income Tax Return Transcript, visit https://www.irs.gov/individuals/get-transcript or call 800.908.9946. You should receive your transcript within 7-10 business days.
- NOTE: Due to sending your transcript, you are not required to send your W-2 or 1099 with your application.
- Only one application can be submitted per plan year regardless of income change.
- You must reapply every year during Open Enrollment or your discount will expire on the upcoming October 1.
- Any premium assistance Application postmarked after the Open Enrollment period (July 1 – August 31) will be effective for the first day of the second month after the receipt and approval of the application.
Any information provided to PEEHIP is kept strictly confidential and in compliance with HIPAA regulations. Your income and tax information will not be shared with any third party.
Free Tax Help
For free tax preparation help, visit https://www.irs.gov/individuals/free-tax-return-preparation-for-you-by-volunteers
For free tax preparation software, visit https://www.irs.gov/uac/free-file-do-your-federal-taxes-for-free
For a free transcript, visit https://www.irs.gov/individuals/get-transcript or call 800.908.9946.
Premium Assistance Law
Section 16-25A-17.1, Code of Alabama 1975
The annual income of an employee or retiree shall be aggregated with the annual income of the spouse of such employee or retiree and shall include all sources of income including, but not limited to, wages, pension benefits, and Social Security benefits, that may be included in gross income for purposes of federal income taxation. Applicants must submit with their application a copy of their federal tax return and, if the applicant did not file a joint return with his or her spouse, a copy of the spouse’s federal tax return. Any reduction in an employee’s or retiree’s contribution pursuant to this section shall not be considered income of the employee or retiree for purposes of determining Medicaid eligibility for such employee or retiree.