PEIA Finance Board Decides On Straight Premium Increases

The Public Employees Insurance Agency (PEIA) finance board voted Thursday in favor of straight premium increases.

The board’s decision follows four public hearings on changes to PEIA and comes after the idea of adopting two blended approaches was rejected. 

Those plans would have resulted in lower premiums but higher deductibles, out-of-pocket and prescription costs.

Under the new plan, state employees and educators will see a nearly 24 percent increase in premiums, effective July 1. The change reflects a return to the 80/20 employer/employee premium split.

Employees insured by local government agencies that opt into PEIA can expect premium increases of 15.6 percent. 

A monthly surcharge of between $140 and $150 will apply to spouses of active policyholders who opt into PEIA. The cost will vary based on the plan’s tier levels.

Also effective July 1, reimbursement to providers will increase to a minimum of 110 percent of Medicare’s reimbursement.

The changes to PEIA follow legislative efforts to rescue the insurance carrier from fiscal insolvency and more recently, the announcement by Wheeling Hospital that it would no longer accept the insurance carrier.

For more information on the new PEIA plan, visit peia.wv.gov.