Alexandria City Public Schools staff are decrying the short notice given over an increase to their health insurance premiums, just a day before the month-long open enrollment period.
In an April 30 email, thousands of ACPS staff and retirees were told that health insurance premium rates will increase by 16% for UnitedHealthcare customers and by 8.9% for Kaiser Permanente customers, and that the changes will result in higher employee contributions. Employees who don’t go through the open enrollment process by 11:59 p.m. May 31 will lose their healthcare coverage.
Superintendent Melanie Kay-Wyatt also unveiled her amended Combined Funds Fiscal Year 2027 Budget on Thursday night (May 7), and acknowledged the Board’s willingness to make tough decisions, including a 5% reduction in the school system’s contributions to health insurance premiums. She said it was challenging to find a number of cuts to accommodate a $5.6 million funding gap that City Council refused to fill in its FY2027 budget.
“This has been one of the most genuinely difficult budget seasons for us, and the fiscal landscape we have navigated together this year has reminded all of us, the School Board, our school our district leaders, our educators, our staff, our partners with the EAA and our families to make decisions that no one wanted to make,” Kay-Wyatt told the board. “Every dollar was accounted for with purpose and care. These were not painless decisions, but they were the right decisions to protect our financial stability and keep us moving forward.”
Kay-Wyatt is recommending a 5% reduction in the school system’s contribution to health insurance premiums, from 80% to 75% for licensed staff and 90% to 85% for support staff.
“Unlike in previous years, all employees will be required to complete the benefits enrollment process for the upcoming plan year by either reconfirming their current benefits coverage or making changes to their existing elections in Employee Access,” Kamika Valmond, the acting ACPS chief of human resources, said in the email. “Employees who do not complete this process will experience a loss of health coverage after June 30, 2026. Any updates or confirmed selections will take effect on July 1, 2026.”
ACPS middle school teacher David Paladin-Fernandez calculated that his healthcare premium will rise from $95 per paycheck to $143.84. Paladin-Fernandez was joined by a number of educators at Thursday’s School Board meeting to condemn the changes.
“I do not know how ACPS educators are supposed to absorb this blow,” Fernandez said. “Some ACPS educators will see their expenses increase by several hundred dollars, just to ensure their families can get the medical care they need … This expense will hang at the head of every employee until their time in this district is through, and I am tired of suffering for my loyalty again and again and again and again.”
Another ACPS teacher told the board that she only received a single email from ACPS on the healthcare changes.
“How long in advance were you in the HR department aware this shifting procedure was coming?” the teacher asked. “Do you really think it is appropriate to give no notice and no warning to your staff, when they could have had the opportunity to prepare for a moment so that no one suffers a lapse in coverage?”
School Board Chair Michelle Rief, in February, tried to keep the ACPS contribution at 80%, but the school system would then have had to find nearly $2 million in additional funding and the proposal was voted down by her colleagues.
The April 30 note from ACPS to staff is below.
Dear Alexandria City Public Schools Staff,
Open enrollment begins this Friday, May 1, 2026, and will continue through Sunday., May 31, 2026, at 11:59 p.m. Unlike in previous years, all employees will be required to complete the benefits enrollment process for the upcoming plan year by either reconfirming their current benefits coverage or making changes to their existing elections in Employee Access. Employees who do not complete this process will experience a loss of health coverage after June 30, 2026. Any updates or confirmed selections will take effect on July 1, 2026.
Open enrollment is the time to review your health insurance and other benefit options for the school year 2026-27, so that you can make the best choices for you and your family. Note that you must re-enroll in Flexible Spending Accounts (FSA) each year through the Employee Access portal.
Requiring benefits enrollment for all employees ensures every employee actively reviews and confirms their benefit elections for the upcoming plan year. Even if you intend to keep the same coverage, plans, cost and coverage details can change from year to year. Ensuring all employees complete the enrollment process helps prevent unintended gaps in coverage, ensures accurate and up-to-date benefit elections, and confirms that each employee understands available options.
This process also allows the school division to maintain compliance with benefits regulations, accurately manage payroll deductions and ensure all employees have made informed decisions about their health and wellness benefits. Without mandatory participation, employees could unknowingly lose coverage or miss important updates that impact them and their families.
To confirm or update your benefit selections for the 2026-27 school year, employees can make changes using the Employee Access portal beginning May 1, 2026.
In addition to open enrollment being mandatory for all ACPS staff, there are additional health insurance changes taking place beginning July 1, 2026.
Health Insurance Rate Changes
Health insurance premium rates will increase by 16% for UnitedHealthcare customers and by 8.9% for Kaiser Permanente customers, resulting in higher employee contributions. Updated benefit rates for all plans can be found on the ACPS Benefits webpage. Employees are encouraged to review the updated benefit rates to help inform enrollment decisions.
All of the new plan year rates information is available on the ACPS Benefits webpage.
Prescription Coverage Update
Beginning with the new plan year, CareFirst will no longer serve as the prescription (Rx) provider for employees enrolled in UnitedHealthcare (UHC) plans. This change does not impact employees enrolled in Kaiser Permanente plans, as their prescription coverage remains the same.
Upcoming Benefits Engagement Opportunities
ACPS will host in-person and online events with the ACPS Benefits team to provide information, answer questions and ensure employees are informed and supported throughout the open enrollment process.
- Open Enrollment Webinar — Thur., May 5, 2026, from 4-5:30 p.m.
- Open Enrollment Fair at George Washington Middle School Gymnasium (1005 Mt. Vernon Ave.) — May 14, 2026, from 4-6:30 p.m.
- Virtual Office Hours — May 20, 2026, from 4-6 p.m.
- Open Enrollment Fair at the ACPS Transportation Depot (3540 Wheeler Ave.) — Thur., May 28, 2026, from 10 a.m-2 p.m.
Healthcare and Dependent Care Flexible Spending Account Information
To continue participation in the Healthcare and Dependent Care Flexible Spending Account (FSA) programs, employees must enroll anew each year. The Internal Revenue Service (IRS) annual maximum contributions are as follows:
- Healthcare FSA contributions are limited by the IRS to $3,400 each year. (The limit is per person; each spouse in the household may contribute up to the limit. Your employer may elect a lower contribution limit. Please see your plan documents or check with your Human Resources office for the specifics of your FSA Health Care Plan. The limit may be adjusted annually to account for inflation increases.)
- Dependent care FSAs, you may contribute up to $7,500 per year if you are married and filing a joint return, or if you are a single parent. If you are married and filing separately, you may contribute up to $3,750 per year per parent.
- Qualified medical expenses can be found in IRS Publication 502. Due to frequent updates to the regulations governing Flexible Spending Accounts and Health Savings Accounts, this list does not guarantee reimbursement but, instead, is to be utilized as a guide for the submission of claims.
- FSA FAQs (Get answers to frequently asked questions.)
Healthcare Savings Account (HSA) Information
2026 HSA Contribution Limits
- An individual with coverage under a qualifying high-deductible health plan (deductible not less than $1,700) can contribute up to $4,400. The maximum out-of-pocket is capped at $6,500 in-network.
- An individual with family coverage under a qualifying high-deductible health plan (deductible not less than $3,400) can contribute up to $8,750. The maximum out-of-pocket is capped at $13,000 in-network.
HSA Catch-Up Contributions
Once you turn 55, you can contribute an additional $1,000 each year to your HSA, called a catch-up contribution. If you and your spouse are both over the age of 55, you can each contribute an additional $1,000. Your spouse will just need to open their own HSA for their additional portion. Make a catch-up contribution online today.
Note: Before you can enroll in an HSA account, you must be enrolled in the United Healthcare QHP medical plan.
Contact Information
Employees are encouraged to take advantage of open enrollment sessions and available resources, and to contact the ACPS Office of Compensation and Benefits with any questions or to receive additional information at [email protected].
Thank you,
Kamika Valmond
Acting Chief of Human Resources
Department of Human Resources
Alexandria City Public Schools
