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# Alabama State Employees’ Insurance Board approves first premium increase in 11 years
- URL: https://down-ballot.info/alabama-state-employees-insurance-board-approves-first-premium-increase-in-11-years/
- Published: 2026-09-28T09:00:12.000Z
- Updated: 2026-09-28T09:00:11.000Z
- Author: Ben Ledbetter
- Tags: Alabama, state employees, premium increase, Health insurance

By Andrea Tinker (Alabama Reflector) Published: September 24, 2026

The State Employees Insurance Board Wednesday voted to increase premiums for state employees and dependents, citing rising healthcare costs and concerns over the stability of the program.

Premium rates will go up by $15 effective Jan. 1, the first across the board increase in 11 years.

“I think it’s very important to note that 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,” said Stephanie Azar, the Chief Executive Officer of SEIB, during the meeting.

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The board oversees insurance for approximately 102,000 state employees and family members. Without the increased premiums, SEIB was projected to end fiscal year 2028 with a $81.4 million deficit.

The increase passed with board member Bob Childree being the sole no vote. During the meeting, Childree said he wanted to exempt retirees from the increase because they have not received cost-of-living adjustments.

“We are in a crisis. We are in a serious crisis, and I’m going to tell you that retirees are suffering more in this crisis than any other constituency group,” Childree said.

Currently, there are over 20,000 retirees who use state insurance. Azar said after the meeting that the board’s expenditures have “been exceeding revenue for several years,” which is why retirees had to be included in the increase.

[Earlier this month](https://alabamareflector.com/2026/09/02/state-employees-may-see-health-premium-increase-amid-very-challenging-budget-forecast/?ref=down-ballot.info), the SEIB executive board recommended increasing the premiums by $20 across the board. Board member Connie Grier wanted to drop the cost to help alleviate financial strain on employees.

“To some people, $5 is $5, and those that are paying both those rates, that’s $10 less out of their household,” Grier said.

With the $15 increase, the estimated financial impact will be around $9 million instead of the $12 million financial impact the original $20 would have provided.

Along with the premium increase, SEIB also approved other changes to benefits, including:

> $5 increase on single Standalone Coverage for Dental, Cancer and Vision ($15 to $20)

> $6 increase on single Standalone Coverage for Dental, Cancer and Vision ($24 to $30)

> Tier 2 60- and 90-day prescription drug costs: from 30, 60 and 90-day prescriptions having 20% copay with minimum $45, maximum $85; to only 60 and 90-day prescriptions having 20% copay with minimum $90, maximum $170

> GLP-1 prescriptions: from having a 90-day supply to 30-day supply

> Medicare Part D prescription cost share increases

> Tier 1: 30-day copay $3 to $6; 90-day copay $12

> Tier 2: 30-day copay $23 to $40; 90-day copay $80

> Tier 3: 30-day copay $53 to $60; 90-day copay $120

> Tier 4: 30-day copay $53 to $60; limited to 30-day supply

SEIB plans to sk the Legislature for a $75 per member per month increase for FY28, bringing the state rate to $1,250 per member per month. That is an estimated $480 million impact to the General Fund budget for SEIB’s roughly 32,000 active members.

Azar told the board there’s a possibility that with a tight budget, SEIB could remain level funded for FY28.

“Me being somewhat familiar with the headwinds that that general fund is facing, I would say there could be a possibility we will be level funded in 2028\. I can’t speak to that, but it is something we have to assume could be a real possibility,” she said.

Faye Nelson, chair of the board, said the board should consider putting “skin in the game” in order to get funding from the Legislature.

“You are going to be dealing with a very tight budget and new legislators, new governor, and we need to find a way to empower her to have some level of negotiating when she’s talking,” Nelson said.