FOR IMMEDIATE RELEASE
CHARLESTON, WV – “Damaging. Unreasonable. Harmful.” Those words described WVEA President Dale Lee’s response to the draft unveiled today for the potential PEIA plan for FY26.
The Public Employees Insurance Agency (PEIA) is considering another significant increase in premiums, along with a series of plan changes for all participants in the upcoming year. During the meeting on October 8, 2024, the PEIA Finance Board presented an initial draft of what could be the proposed plan for next year. The plan included:
- An average 14% increase in premiums for state employees, retirees, and non-Medicare retirees;
- A 40% increase in deductibles and out-of-pocket maximums for employees and non-Medicare retirees;
- An expected increase in the spousal surcharge from $149 to $350; and
- Other increases in copays – including therapy, ER, inpatient and pharmacy charges.
“The initial draft of the plan discussed by the Finance Board is shocking. The draft has costs being shifted to employees and retirees and that is totally unacceptable,” states President Lee. “Plan participants should not shoulder all the draft changes out of their own pockets. Much of the increased costs for the plan come from the actions of the Legislature. The Legislature increased the reimbursements to hospitals and independent pharmacies at a cost of approximately $75 million to PEIA. Plan participants should not be required to fill that gap. Under this proposal, providers come out with increased revenue and plan participants are the ones paying the price.”
“According to all we hear, the state is experiencing record surpluses in revenue. If that is true, then why are the employees paying for the increased rates being paid to providers. The state should use some of the surplus for the providers,” continued Lee. “Addressing the challenges facing PEIA should not come at the expense of our teachers, school service personnel, and other public employees,” says Lee. “As difficult as it is to recruit and retain qualified employees into our school systems, actions such as these only compound the problem.”
“I certainly hope this draft proposal is reworked and a much different plan is proposed at the next meeting. This plan will harm retirees and active employees,” concluded Lee. The PEIA Finance Board has another meeting scheduled on October 24. It is at that meeting that a proposed plan for FY26 and public hearing dates will be released.