West Virginians are voicing strong concerns over the proposed increases in premiums and copays for the Public Employee Insurance Agency PEIA, which could be implemented by July 2024.
The changes, which include significant hikes in premiums for state employees, local employees, and retirees, have been met with frustration, particularly from teachers, school personnel, and other public service employees who depend on the program.
State employees like Tena McElwain, a Monongalia County bus driver, express fear that these increases will make it even harder to fill critical vacancies in local government jobs.
McElwain highlights that the rising insurance costs are eating into workers’ paychecks, with many employees finding it difficult to make ends meet despite working long hours. Additionally, concerns about the future of PEIA are growing as Governor Jim Justice’s administration nears its end and a new governor takes office.
PEIA’s proposed changes are seen as a result of rising healthcare costs, including inflation and expensive medications like GLP-1s, which are used to manage diabetes and obesity. Although the Biden administration recently announced plans to have Medicare and Medicaid cover the cost of these medications, PEIA has been phasing out weight-loss drug coverage to reduce costs.
Other contributing factors include a law passed in 2023, Senate Bill 268, which increased reimbursements to healthcare providers and imposed additional financial burdens on the program.
Public hearings, including those attended by state employees and retirees, reflect deep dissatisfaction with the rising costs. Teachers, such as Jo Frost and Diana Adkins, voiced concern that the higher premiums and copays could discourage potential educators from staying in or entering the field, exacerbating the already significant shortage of teachers in the state.
In response, legislators like Del. Mike Pushkin and Del. Joey Garcia have acknowledged the need for long-term solutions to stabilize PEIA funding, with Garcia noting that the legislature holds the power to fix the program’s issues.
However, the focus remains on short-term solutions, which have yet to adequately address the long-term sustainability of PEIA.
As the December 5th approval date for the proposed changes approaches, there is growing pressure on lawmakers to provide a more sustainable solution for West Virginia’s public employees and retirees, who face mounting healthcare costs amidst a challenging economic climate.