MONTGOMERY — The board that manages Alabama’s health care program for teachers is going to ask lawmakers for an additional $134 million in fiscal year 2026 to start plugging an expected $283 million shortfall in 2027.

The request would bring state funding for educators’ insurance to $1.3 billion in 2026. the additional $134 million, as well as the up to $118.9 million from the reserve account.

The board for the Public Education Employees’ Health Insurance Plan, or PEEHIP, also proposed transferring up to $79.4 million from a reserve account, though later upped the ask to be up to $118.9 million. The board discussed raising premiums on retiree members starting in 2025 to cover the cost increase as well, but ultimately opted to ask lawmakers for the additional $134 million, as well as the up to $118.9 million transfer. About 350,000 teachers, retirees and their dependents are currently enrolled in PEEHIP.