PEIA Public Hearings Story Archives - West Virginia Public Broadcasting

Teachers, School Service Personnel Rally Ahead Of PEIA Hearing In Morgantown

Teachers and school service employees rallied Tuesday night ahead of a Public Employees Insurance Agency (PEIA) hearing in Morgantown.

PEIA is holding hearings across the state to receive input from state employees and retirees on proposed price increases to their health care plans that would take effect next summer. Changes include a 14 percent increase to premiums and a 40 percent increase to deductibles.

Members of the American Federation of Teachers – West Virginia (AFT) gathered outside of the Erickson Alumni Center at West Virginia University ahead of testifying in front of the PEIA Finance Board. They were joined by the West Virginia Education Association, as well as the United Mine Workers of America, who represent some school service workers.

Tena McElwain, a bus driver for Monongalia County Schools and the AFT service personnel president for the county, said the rally is a show of solidarity.

“The rally is just to show support, unity,” she said. Hopefully we can take care of PEIA this year, working through the legislatures and finding appropriate funding for it.”

McElwain said the proposed increases would cut even further into paychecks for service workers, and make vacancies even harder to fill.

“Right now there’s a shortage in Mon County for bus drivers, secretaries, aides, custodians, cooks, because of the PEIA increases,” she said. “We’re more or less working to pay insurance. We’re not taking anything home after PEIA comes out, we still have bills.”

Cullen Hencke, also a Monongalia County teacher and the vice president of the local AFT chapter, said teachers and school personnel aren’t the only ones that will be impacted by the rate increases.

“Sometimes we’re the loudest voices about these issues, but we know that they affect lots of other people who West Virginians care about and look to and in times of need,” he said.

Carol Roskos, a Monongalia County teacher and president of AFT Moningalia, echoed McElwain’s concerns of the rate increase’s economic impact.

“I would like to see the public hold their elected officials accountable for being responsible for helping West Virginia to run efficiently as a state,” she said. “If West Virginia is not taking care of their employees’ health insurance, there is a possible economic fallout that could happen if folks tend to leave the state or seek employment somewhere else.”

At least four officials elected to state office were present at Tuesday’s meeting, including Sen. Mike Oliverio, R-Monongalia, Del. Anitra Hamilton, D-Monongalia and Del. John Williams, D – Monongalia, but many attendants expressed dismay that more politicians were not present.

Del. Joey Garcia, D-Marion, was recently elected to the state senate for District 13. He spoke to the rally ahead of the hearing, and said PEIA’s problems were created by the legislature, and they can be fixed by the legislature.

“They’re fixes that an incoming governor can propose when we get into the legislative session this coming February,” Garcia said. “I’m hopeful, I think these people here are hopeful that their voices will be heard. And I just said a second ago, you can listen, or you can actually look at something, and see where people are. And I think that’s what we’re going to see a lot tonight about how this has affected people in their pocketbooks.”

Attendants at the Nov. 19, 2024 PEIA Finance Board hearing in Morgantown listen to a presentation on proposed increases.
*Chris Schulz/West Virginia Public Broadcasting*

Kristie Skidmore was elected president of AFT – West Virginia over the weekend. She echoed others and said she is concerned the rate increases will worsen the existing teacher shortage.

“A big picture that we need to look at is when members can’t afford health care, and they can’t afford to stay in the state, they’re going to go elsewhere, and they’re going to make more money, and they’re going to have better health care,” she said.

Dale Lee, president of the WVEA, said that healthcare is a national issue that cannot be fixed at the state level, but some of the burden needs to be redistributed away from employees.

“The burden of the increased cost shouldn’t be borne solely on the employee, and in this plan, more than 40 percent of the costs are going to directly to the employee,” Lee said. “Because not only do you have the premium increases of the 80/20 which, by law, you have to do, but you have $76.4 million in benefit reductions that is born solely on the employee.”

Lee pointed out that pay increases implemented by the legislature were intended to help address PEIA rate increases, but have had little effect.

“It’s really not a pay raise, because you’re not being able to have any more additional dollars for gas bills, electric bills, groceries, things like that,” he said. “You’re actually seeing your buying power decrease in this. So we really haven’t received a raise. It’s been an offset.”

The final public hearing in the series will be held in person Thursday, Nov. 21 at the Culture Center in Charleston.

Public Employees Ask PEIA Not To Raise Rates

State employees had the opportunity Monday evening to make their voices heard about proposed rate increases to their health insurance.

About 160 people attended a virtual public hearing held by the West Virginia Public Employees Insurance Agency (PEIA), to hear proposed changes to their health insurance for Plan Year 2026, beginning July 1, 2025.

On Oct. 24, PEIA and the Retiree Health Benefit Trust (RHBT) Finance Board met to discuss proposed changes to rates.

Brian Cunningham, the director of PEIA, presented the Finance Board’s proposed rate increases, then took questions and comments from the audience.

The board’s proposal includes 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 the rate increases can be attributed to the passage of Senate Bill 268.

The 2023 bill mandated a spousal surcharge and formalized the 80/20 rule, which requires insurance companies to spend at least 80 percent of the money they take in from premiums on health care costs and quality improvement activities.

“As it relates to spousal surcharge, the board is proposing a $350 spousal surcharge,” Cunningham said. “Currently, that spousal surcharge is $147.”

The bill also required PEIA to increase reimbursement to healthcare providers.

“The other things that are driving cost increases, (you) may have heard of Senate Bill 268, which resulted in increased reimbursement to healthcare providers,” Cunningham said. “In plan year 2024 PEIA paid out more than $70 million more in healthcare providers and reimbursement to healthcare providers, particularly inpatient hospitals.”

Finally, Cunningham said, rising prescription drug costs are spurring rate increases for employees.

“A significant driver of the cost of prescription drugs are what are known as GLP-1’s,” Cunningham said. “GLP-1’s are prescription drugs like Ozempic and Mounjaro. GLP-1’s were responsible for almost $53 million in cost in plan year 2024 which is approximately 20 percent of the overall net cost, or the overall net drug spend at PEIA.”

In March, PEIA canceled a 1,000-person pilot program that covered weight-loss drugs due in part to the program’s cost to the state. However, advocates of the program say the state will end up paying more for the health complications that will be caused by obesity.

West Virginia state employees from all walks of life voiced their concerns about increasing healthcare costs.

Retirees on the call say they worked their lives for their retirement, and these rate increases will not be feasible on a fixed income.

Teachers on the call say their salaries do not cover their expenses, but they have continued to work their state jobs for the benefits because it outweighed the cost and they care about their work.

Jamie Tallman was one of 165 West Virginians on the virtual call who spoke during Monday’s hearing. He has been teaching in Grant County for almost 40 years.

He says he and his wife will have to consider selling their home and downsizing if the rate increases are implemented. That echoes sentiments from his fellow state educators that affordable health benefits were leveling out the low salaries provided by the state.

“This would be the most severe pay cut, basically, that I would receive as an educator in all my career. And I know somebody said last night, it is a perk,” Tallman said. “The insurance has kind of been a perk, you know. We work right up there, 49th, 50th, you know, in teacher salary.”

Most speakers said if the rates are raised they will have to consider leaving the state entirely or stopping work for the state.

Cunningham encouraged PEIA members to reach out to their lawmakers to let them know their concerns.

PEIA is continuing to hold public hearings throughout the week.

Justice Proposes State Employee Pay Raise To Offset PEIA Premium Increases

Gov. Jim Justice said that a proposed 5 percent pay raise for state employees and teachers would offset the higher premium.

West Virginia’s Public Employee Insurance Agency (PEIA) began soliciting public input this week on a proposed 10.5 percent insurance premium increase needed to meet expenses.

That proposed rate hike comes on top of a legislated 24 percent premium increase passed in the 2023 legislative general session. PEIA was facing a long range shortfall of about $400 million by 2027 unless the funding mechanisms were changed.

In his weekly media briefing. Gov. Jim Justice said that a proposed 5 percent pay raise for state employees and teachers would offset the higher premium.

“The increases are very difficult to avoid,” Justice said. “We can offset with pay raises to where we’ll be putting at least as much money in somebody’s pocket that the increase is going to cost, and in most cases, we’re putting more money in their pockets.”

A response to Justice’s PEIA offset from the West Virginia Democratic Party notes that in October 2021, Justice said PEIA premiums “would not go up on his watch.”

In the response, West Virginia Democratic Party Chair Del. Mike Pushkin, D-Kanawha, noted what he called broken promises.

“Sixteen months after the governor’s promise,” Pushkin said. “Apparently a meteorite hit the earth because the legislature passed a PEIA plan including an increase in premiums of 69 percent over five years. That very same week the legislature added insult to injury; rewarding themselves by passing a bill increasing their own pay.”

PEIA’s five-year plan shows additional premium increases of 69 percent if the proposed changes are approved.

West Virginia Education Association President Dale Lee said while the pay raise proposal offsets premium hikes for now, five year projections are concerning.

‘I don’t know anyone that can sustain that,” Lee said. “I don’t know, any private plan that would see a 69 percent premium increase over five years.”

Lee said the answer is working on language regarding the mandated 80-20 premium share between employer and workers – along with savings plans.

“The state puts no less than 80 percent and the employee should pay no more than 20 percent,” Lee said. “Any cost savings to the plan should be credited toward the employee share, because employees are the ones that are helping to create those cost savings. If you have to pay the spouse coverage, the spouse penalty, you actually are making less money right now than you made the year before. Those are all the issues that have to be looked at and be resolved.”

In 2018, West Virginia teachers went on strike with concerns over pay and PEIA. At the time, teachers went back to work after the governor agreed to form a PEIA Task Force to find solutions to avoid problems like this in the future.

PEIA Public Hearings continue through next week. The PEIA Finance Board is expected to vote on the proposed changes in December.

Public Hearings On PEIA Changes Scheduled For March 27-29

A number of changes are coming to the Public Employees Insurance Agency and the public will have a chance to comment during four public hearings on the matter next week.

The changes follow lawmakers’ efforts to find a permanent fix to the state insurance program. They include a hike in premiums for active and retired state employees and more money for medical providers.

This does not apply to non-state agencies, retirees, spouses employed by PEIA-participating agencies, or spouses whose coverage is through Medicare, Medicaid or TRICARE.

Major changes to PEIA that will be effective July 1, include:

A surcharge for spouses of active policyholders – if they have coverage elsewhere, but choose PEIA coverage instead.

A hike in premiums to return to a 80/20 employer/employee premium split

Increasing reimbursement to providers to a minimum of 110 percent of Medicare’s reimbursement.

The hearings will be from 6 p.m. to 8 p.m. as follows:

March 27: Charleston, Culture Center Theater

March 28: Morgantown, Hampton Inn & Suites

March 28: Huntington, Mountain Health Arena

March 29: Martinsburg, Holiday Inn

On March 30, the PEIA Finance Board will meet to adopt the plan which will take effect on July 1 prior to open enrollment in April.

For more information on the public hearings, visit https://peia.wv.gov/news_center/Pages/SB268Hearings.aspx.