Alabama Teachers’ Health Insurance Plan to Request $130 Million More from Legislature after Federal Changes
Changes by the Federal Government, affecting Medicare Advantage plans are driving up Alabama’s cost for Health Insurance for both teachers and other education employees.
On Wednesday, the Board of Control for the Public Education Employees’ Health Insurance Plan (PEEHIP) – approved a proposal to request a $130 million RISE from the Legislature – a 13% increase up to $1.13 billion for fiscal year 2026; the Legislature will consider a request during its annual session, which begins in February. In addition to seeking more money, the Board approved a withdrawal of $119 million, from Alabama’s “Retired Education Employees Health Care Trust”. The trust has a balance of about $2.3 billion – and that law allows withdrawals of up to 10% to help cover the cost of retirees’ insurance.
The total funding in fiscal year 2023 was $1.5 billion. Of that, taxpayers provided $987 million or 64%, whereas members paid $388 million, or 25%.
We’ll update this story as it develops.