Despite raises, AEA says some teachers will lose money with PEEH - WTVM.com-Columbus, GA News Weather & Sports

Despite raises, AEA says some teachers will lose money with PEEHIP increases

Alabama teachers may not see a pay raise previously passed in the education budget. (Source: WAFF) Alabama teachers may not see a pay raise previously passed in the education budget. (Source: WAFF)
ALABAMA (WAFF) -

The board for the Public Education Employees Health Insurance Plan, better known as PEEHIP, voted 7-6 for a rate increase, which could cancel out those pay raises for teachers across Alabama that were part of the education budget that passed earlier this year.

Read: Gov. Bentley wants pay raise for teachers along with PEEHIP

"No one was really informed that this would be an issue," said Alabama Education Association President Sheila Remington.

Remington said the decision to increase insurance premiums through PEEHIP was made behind closed doors.

"Maybe they're not as responsive of the people they're supposed to represent," Remington said.

PEEHIP has said the increases are necessary to close a shortfall of $140 million in their budget. But Remington said it couldn't have come at a worse time.

"We're so devastated by this," said Remington. "Because this is the first time in many years, nine years, that we have received a pay increase."

Single rates will be doubled from $15 to $30, family rates go up by $30, and there will be an increase in spousal surcharge by $50.

"With this increase in PEEHIP, many of our members are not getting a raise," Remington said. "They're getting less money."

When you do the math between the pay increases and the increased health costs, some teachers will actually be making less.

"Now we're let down, because many people are losing that entire amount," said Remington.

Copyright 2016 WAFF. All rights reserved.

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