Judge rules in favor of AEA in PEEHIP lawsuit, striking down health insurance rate hike

The Alabama Education Association has won a lawsuit alleging that the Retirement System of Alabama PEEHIP Board met illegally and improperly raised state employees’ health insurance rates.

A Montgomery County Judge, Johnny Hardwick, issued the ruling Sunday in favor of the AEA. In the 13-page order, Hardwick agreed with the AEA’s allegation that the meeting — which ended in an increase in premiums and surcharges on spouses’ rates — was held outside of the purview of the Alabama Open Meetings Act, ruling the rate changes invalid.

The ruling also held that the PEEHIP Board must now return held funds back to the members who paid those surcharges and rate increases, according to court documents. Meaning that retirees and state employees who paid into those rate increase may soon get a refund to their accounts.

The refund may not happen if PEEHIP appeals the ruling, which the agency said Monday in a statement that they would do.

Read more: http://www.alreporter.com/2017/08/22/judge-rules-favor-aea-peehip-lawsuit-striking-health-insurance-rate-hike/