Alabama lawmakers will enter the 2026 legislative session facing a major financial decision over public educators’ health insurance.

Speaker of the House Nathaniel Ledbetter (R-Rainsville) warns the rising cost of the Public Education Employees’ Health Insurance Plan (PEEHIP) is squeezing out resources meant for classrooms.

Ledbetter told Yellowhammer News that PEEHIP is “looking at $380 million” in additional costs this year, on top of “an additional $160 [million] last year,” totaling “over $540 million dollars in the last 24 months.”

He also explained how the escalating cost limits what lawmakers can invest elsewhere in public education.

“That’s money that could have gone to the classroom, that’s money that could have paid for teacher pay raises, that’s money that could have paid fo

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