CHARLESTON, W.Va. — The state PEIA Finance Board adopted a change Thursday in next fiscal year’s health insurance plan for state workers hinging on state lawmakers agreeing with Gov. Earl Ray Tomblin’s proposed 45-cent per pack increase in the state cigarette tax.
The board, in a meeting in Charleston, said it could make up the $120 million in health care cuts previously approved with $43 million from the tax increase, $24 million in special revenue funds from the state budget, the resulting 12 percent premium increase for all plan members, including retirees and $5 to $6 million in benefit changes.
“The governor has stepped up and offered a great solution to PEIA and to the citizens of this state that we insure,” PEIA Director Ted Cheatham told MetroNews. “I think that he’s done a great job trying to get us where we need to be to help those citizens this year.”
State law requires the PEIA premium to be at an 80/20 split so if the state puts in more money, the employees also have to pay more in premiums. The plan passed Thursday has fewer increases for services used, Cheatham said.
“Everybody who was using the plan (in the previously approved plan for next fiscal year) was taking all of the hit. Their benefits were going up and they were going to have to pay more out of pocket to use the plan. Now the cost of using the plan is much, much, much, much less while the cost of getting into the plan (premium) is more,” Cheatham said.
The minor benefit changes include increasing urgent care copays, stopping payment to out-of-state non-network physicians, stopping the living well discounts and continuing the maximum fee for out-of-state services, Cheatham said.
The changes would go into effect July 1 but everything depends on what the legislature does with the governor’s tax increase proposal, Cheatham said.
“There still has to be some legislation to get at least a 45-cent cigarette tax (increase) put on the books,” Cheatham said.