The Public Employees Insurance Agency is considering another significant premium increase for participants in the coming year. The PEIA Finance Board met on October 19 and released a proposed plan that includes:
- A 10.5% premium increase and no benefit changes for state employees.
- No changes in premiums or benefits for retirees who are eligible for Medicare.
- A 10% premium increase and no change in benefits for people who have retired but are not yet eligible for Medicare.
“I don’t know of any private plans that have implemented such increases in premiums over a two-year span. With morale at an all-time low and the inability to find people to fill vacancies in our systems, continuing to take money out of employees’ wallets makes no sense,” says WVEA President Dale Lee.
“Once again, the governor is talking about a “salary increase” to offset the increased premium cost. If the money is there to give to employees to offset the increase, then the money is there to put into PEIA. We must get the legislature to be more flexible with the 80/20 premium split,” continued Lee.
This year the state is putting an additional $62.7 million into the plan. Based on the 80/20 split, employees are required to put in an additional $15.7 million to maintain the 80/20.
In addition to the proposed plan, PEIA also released the public hearing schedule.