Virginia Beach teachers sue over 110% insurance hike

Virginia Beach school employees are taking their superintendent to court, accusing him of hiding a 110% jump in health insurance premiums until after they signed contracts for the new school year.

The lawsuit, filed Aug. 20 in Virginia Beach Circuit Court, represents 112 teachers and staff against Superintendent Donald Robertson. It argues employees signed 2025–26 contracts in good faith, not knowing their health care costs would more than double starting Jan. 1, 2026. Court records show the case remains active and names Robertson in both his individual and official capacity.

Tim Anderson, a Virginia Beach attorney and Republican nominee for the House of Delegates in District 97, is representing the employees. In an email to The Center Square, Anderson said the superintendent “concealed” the increase until after contracts were signed.

“That’s fraud in the inducement — employees committed in good faith, without being told the truth about what was coming,” Anderson said.

He added that the case seeks to block Virginia Beach City Public Schools from enforcing the premium hikes and to “preserve the rights of employees to contract honestly and fairly with their employer.”

An Aug. 7 letter from the district’s Consolidated Benefits Office informed employees of the changes, saying premiums would rise anywhere from $2.04 to $210.97 more per pay period depending on the plan. Retirees face monthly increases ranging from $52.28 to $445.25.

District documents show health insurance costs had been kept low in recent years because Virginia Beach used its health fund reserves to subsidize premiums. That allowed employee contributions to remain flat from 2019 to 2022 and even decline in 2023. By 2024, however, claims were rising about 11% annually and the reserve was nearly depleted. Officials cited higher prescription drug costs and medical inflation as key drivers.

The documents also note that school employees, board members and senior staff all pay the same insurance rates, while retirees are on a separate plan. For several years, school employees paid less than city employees because of the subsidies, but in 2026 the rates will return to city levels.

The difference, according to documents, is in how deductions are collected. School employees pay over 20 pay periods, with none in July and August, while city employees currently pay biweekly over 26 periods. Starting in 2026, the city will move to 24 pay periods, narrowing the gap between schedules.

The board discussed possible ways to lessen the impact, such as reallocating budget funds or offering stipends to employees, but no decision was made.

In a separate post on social media, Anderson criticized Robertson for securing a $320,000 contract of his own, while teachers faced soaring premiums.

“Now teachers are going back to work with less money than last year. Their ‘raise’ is wiped out by higher health care costs,” Anderson wrote.

Anderson told The Center Square on Friday that the case is moving forward and will grow.

“We are going to be adding many other plaintiffs to the lawsuit and filing an amended complaint next week,” he said. “Since the School Board has punted on resolving this, the only resolution is now in court.”