By Phil Kabler, Charleston Gazette-Mail
PEIA reserve funds are projected to reach 25.6 percent of overall annual expenses by June 30, 2020, well above the 14 percent recommended reserve the agency attempts to maintain, creating an estimated $26.5 million surplus that PEIA will be able to put toward the 2020-21 plan year, executive director Ted Cheatham told the Joint Committee on Government and Finance Tuesday.
“We do have every intention to spend down both the state [employee] and non-state reserves,” he said.
That should help PEIA get through the 2021-22 plan year without needing additional general revenue funding, beyond continuing to spend down $105 million of 2018-19 budget surplus the Legislature transferred into a PEIA “rainy day” fund earlier this year.
PEIA, the state-managed health insurance plan for public school and state employees, as well as some municipal and county employees, is currently conducting public hearings on the proposed 2020-21 benefits plan, a plan that proposes no premium increases and no cuts in benefits for the plan year.