The State Employees’ Insurance Board voted Wednesday to raise health insurance premiums for state employees, retirees and dependents by $15 a month starting Jan. 1. It is the first across-the-board increase in 11 years, the Alabama Reflector reported. The board covers about 102,000 state employees and family members.
Earlier this month the board’s executive committee recommended a $20 increase, which ODN reported Sept. 3. Board member Connie Grier pushed to lower it. “To some people, $5 is $5,” she said. The $15 increase will bring in about $9 million, compared with $12 million from the original proposal. SEIB officials said the plan was headed for an $81.4 million deficit by the end of fiscal 2028 without an increase.
“The reason for the recommended premium increases today is not because it’s been 11 years, but rather because the financials of the plan demonstrate necessity,” SEIB CEO Stephanie Azar said. Board member Bob Childree cast the only no vote. He wanted retirees exempted because they have not gotten cost-of-living raises. “Retirees are suffering more in this crisis than any other constituency group,” he said. More than 20,000 retirees use state insurance.
The board also raised standalone dental, cancer and vision premiums, doubled the minimum and maximum copays for Tier 2 prescriptions filled as 60- and 90-day supplies (now a $90 minimum and $170 maximum), limited GLP-1 prescriptions to 30-day supplies, and raised Medicare Part D copays. SEIB will ask the Legislature for $75 more per member per month in fiscal 2028, though Azar said the plan may end up level-funded because the General Fund budget is tight.
Source: Alabama Reflector
Opelika Daily News — Friday Report, Sept. 25, 2026 | Compiled by Viktor AI for Opelika Daily News
