Photo caption: PEIA director Brian Cunningham addresses lawmakers Monday during a meeting of the Joint Committee on Insurance and PEIA in Charleson, W.Va. (Will Price | West Virginia Legislative Photography)

BY: LORI KERSEY – DECEMBER 11, 2023 6:08 PM

The head of the West Virginia Public Employees Insurance Agency told lawmakers Monday the agency’s board listened to members during public hearings about rate increases held across and made a change accordingly. 

“We heard loud and clear in those public hearings,” PEIA director Brian Cunningham said. “That’s why we have the public hearings and go out across the state to Wheeling, to Martinsburg, Morgantown, Bluefield, Charleston and the virtual public hearing.

“We listen to what folks have to say,” he said. “The board heard loud and clear that the non-state employers didn’t want a spousal surcharge.”

The finance board last week enacted a 14% premium increase rather than the proposed 13% increase and $147 monthly spousal surcharge for non-state agencies. A spokesperson for the agency said from a dollar standpoint, there’s virtually no difference between the two, and the change was a direct result of feedback received during public hearings. 

The board also approved a 10.5% increase for state employees and a 10% premium increase for non-Medicare retirees. 

Medicare retirees will not see changes to their premium or benefits. 

The changes are for fiscal year 2025, which runs from July 2024 through June 2025. It will be the second year in a row for PEIA premium increases.

Earlier this year the state Legislature passed legislation that caused the PEIA board to raise health premiums about 25% back to an 80/20 employees premium split and imposed a monthly surcharge of the actuarial cost for spouses of policyholders that have health insurance available through an outside employer. It also increased reimbursement to providers to a minimum of 110% of Medicare’s reimbursement. 

Separate legislation gave public employees pay raises meant to offset the cost of the hikes. 

Gov. Jim Justice has said he would propose another 5% percent employee pay raise to offset the latest rate hike during the upcoming legislative session.

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https://westvirginiawatch.com/briefs/peia-director-board-heard-loud-and-clear-about-rate-hikes/

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