West Virginia PEIA Finance Board members (left to right) Michael Cook, William “Bill” Milam, Jason Myers, Amanda Meadows, Acting Chairperson Sarah Long and Director Brian Cunningham listen to speakers condemn the proposed cost increases during a West Virginia PEIA public hearing held at the West Virginia Culture Center in Charleston, W.Va., on Thursday, Nov. 21, 2024. (Chris Dorst | Charleston Gazette-Mail)
Several of West Virginia’s public employees who spoke out against proposed health insurance hikes on Thursday had a similar message for the state Legislature: Fix PEIA.
The finance board of the West Virginia Public Employees Insurance Agency was in Charleston, West Virginia for its sixth and final public hearing around the state about proposed premium hikes for the 2026 fiscal year, which starts next summer. More than a 100 people attended the meeting at the Culture Center.
In what would be the second round of rate increases in as many years, the finance board has proposed increasing premiums by 14% for state employees and by 16% for local government employees. Retirees would see their premiums increase by 12%.
Both state and county employees would see an increase of 40% in their out-of-pocket maximum as well as increase in co-pays. A monthly spousal surcharge for state employees would more than double, from $147 to $350.
The increases will equal roughly $113 million.
Dinah Atkins told the board that some employees and retirees can’t stretch their dollars any more than they already are.
“We’ve got to take care of our retirees,” Atkins said. “We’ve got to take care of our employees. We’ve got to build a system that makes West Virginia look good, because right now, if I were a business coming into West Virginia and I saw how your public employees were treated and how your teachers were the lowest in the nation, I would hightail it out of here and head someplace else.”
She called on fellow PEIA members to contact their representatives in the statehouse.
“It’s up to our legislators,” she said. “It doesn’t matter who you voted for. Call the people in the Legislature later and tell them ‘we need your help.’”
Speaking to a reporter before the meeting at a teachers union rally, Dale Lee, president of the West Virginia Education Association, said union leaders are “letting the process play out,” before considering teacher walkouts. Teachers across the state walked out over pay in 2018 and 2019.
Lee told the Culture Center crowd his anger is directed at the Legislature, not with PEIA officials.
The Legislature ignored recommendations of a 2018-2019 task force meant to improve the health insurance program, he said.
“I have to tell you that, in my opinion, it’s because of the actions that we took in 2018 and 2019 and retaliation,” he said. Lee called this year’s proposed rate increases “unacceptable.”
“One thing I do know is our educators and our retirees can’t sustain this, can’t continue to pay this, and it can’t be on their backs,” Lee said. “So it’s time for the Legislature to say, ‘Let’s get back together and figure this out, but be serious about this time.’ Not just give us lip service, be serious and when we come up with a proposal that everybody at the table agrees with, providers, doctors, hospitals, employees, employers.”
PEIA director Brian Cunningham said rising prescription drug costs — particularly GLP-1s that treat diabetes — are a big driver of the proposed rate increases. The drugs accounted for $53 million in net costs for the agency last year, he said. Earlier this year, the agency suspended a pilot program that covered the cost of the drugs to treat obesity.
“I can tell you with absolute honesty, and I think we speak for all the members of this board, we don’t want to raise premiums. We don’t want to change benefits, but unfortunately, health care costs are going up, not just for PEIA, but for all insurance plans around the country,” Cunningham said. “PEIA must generate enough revenue to pay the claims. There is no other money available, and that’s why these changes are being proposed.”
Kim Fleck, deputy county manager and chief financial officer for the Kanawha County Commission, told the board that the proposed rate increases would negatively affect the county’s dedicated first responders.
“Every single day, these employees, these individuals, go above and beyond,” Fleck said. “They leave their families to protect yours. They run toward danger to ensure your safety. And yet, under these proposals, they face punishing financial burdens, burdens that threaten their ability to provide for their own families. A 16% premium increase may just sound like another number in the budget, but to our first responders, it represents real hardships.”
The PEIA finance board will meet Dec. 5 to finalize its plan for next fiscal year.
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