By SPEAKIN’ OUT NEWS
MONTGOMERY — Alabama’s retired state employees will face higher health insurance premiums beginning Jan. 1, 2027, after the State Employees Insurance Board approved a $15 monthly increase.
The board’s Sept. 23 decision reduced an earlier $20 recommendation but retained an increase for retirees. The approved amount adds $180 annually to premiums. It is the program’s first across-the-board premium increase in 11 years.
Retiree advocates say the additional expense will strain households whose pension benefits have gone approximately two decades without a legislative cost-of-living adjustment.
During debate over the original proposal, Alabama Retired State Employees Association Executive Director Lindsey Ward urged officials to find another funding solution.
“All we are demanding is fairness and simple common sense, and this premium increase fails to meet either of those criteria,” Ward said in the statement reported by Alabama Political Reporter.
Board member Bob Childree, who represents retirees, cast the lone vote against the approved increase. His subsequent effort to exempt Medicare retirees failed to receive a second, according to Alabama Daily News.
SEIB Chief Executive Officer Stephanie McGee Azar attributed the financial pressure to rising healthcare expenses and said program expenditures have exceeded revenue for several years. More than 20,000 retirees use the state insurance program, according to Alabama Reflector’s reporting.
The board also approved benefit changes affecting certain prescription costs and standalone coverage. Separately, it plans to seek a higher state contribution for fiscal year 2028.
For retirees, the decision renews concerns about the gap between fixed pension income and rising expenses. Although the final premium increase is smaller than originally proposed, retirees still bear the additional cost.