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PEIA faces a budget overhaul going into the next fiscal year. During the special session in September, the legislature appropriated $87 million in stop-gap funding to restore the Public Employees Insurance Agency (PEIA) reserve after an unanticipated budgetary shortfall.
Monday, Brian Cunningham, director of PEIA, spoke to the Joint Committee on Insurance and PEIA during November’s legislative interim meetings. He pointed to the costs of weight loss drugs, prescription drug prices, and a flood of procedures scheduled after COVID-19 shutdowns.
When lawmakers expressed concern about potential service cuts, Cunningham said the agency was cutting costs across the board.
“From things that save $500 to things that save $5 million — it’s all on the table,” Cunningham said.
Last week, PEIA released a projected five-year plan to raise member payments and restore PEIA reserves. Those proposals include more than doubling some copays along with premium increases through 2029.
Cunningham said while the per member per month cost for PEIA members is lower than peer rates, it is increasing more quickly than peer public insurance programs.
Gaylene Miller, state director for AARP West Virginia, attended the meeting with about half a dozen AARP representatives advocating for older adults and retirees. Miller said a cost of living adjustment for retirees on fixed incomes enrolled in PEIA is a priority going into the next session.
Cunningham said roughly 155,000 active employees and roughly 56,000 retirees are currently enrolled in PEIA.
PEIA also provides coverage for many legislators and state employees like those at WVPB.
Legislators plan to discuss a draft bill on changing PEIA compensation to hospitals during December interim meetings. Public hearings on rate changes continue through Nov. 21; comments may also be mailed to the PEIA office or emailed to PEIAComments@wv.gov.
