CHARLESTON, W.Va. — While premiums and benefits will not change for state employees in the next fiscal year, eyes are already on the future.
The Public Employees Insurance Agency will need to spend $100 million over the next two years to prevent individual costs increases as the state continues to face growing health care insurance expenses.
Members of the PEIA Finance Board have held three public hearings so far regarding their proposal for fiscal year 2021; more than 20 people took part in Tuesday’s event at the state Culture Center in Charleston.
The public hearings are scheduled from 6 p.m. to 8 p.m., but Tuesday’s event ended shortly after 6:30 p.m. because of a lack of speakers.
While many of the attendees of the Finance Board’s public hearings this month have been satisfied with what will go into effect, Fred Albert, the president of the state chapter of the American Federation of Teachers, noted there is uneasiness about the future.
“The following year, we know that there’s probably going to be some increases,” Albert said. “Our legislators need to do their job and find a permanent, long-term funding source to fix this PEIA situation for a long, long time.”
Albert said members of his union are happy with the upcoming plan, which will go into effect in July.
“This is a very unusual year,” he joked to MetroNews. “I’ve been coming to PEIA hearings with the Finance Board for many, many years as a leader with AFT, and this year, it’s good. We came actually thanking the board for their work as being good stewards of managing the public funds that take care of PEIA.”
The state Legislature approved $105 million earlier this year to keep hikes or cuts from happening.
PEIA Director Ted Cheatham said reactions at the public hearings so far have been positive.
“We have made no changes. There is nothing to be concerned about yet, so people are pretty pleased things have moved along,” he said.
Yet in his public comments, Albert stressed the need for a permanent funding solution for PEIA before the state cannot cover a rise in health care costs.
“That’s what we asked for in 2018, and that’s what we’re asking again,” he said.
Cheatham agreed, saying health care costs will increase between 7% and 10% annually.
“On a plan of our size, that’s around $50 million. Could be more, could be a little bit less,” he said.
“It’s an escalating amount of money. Finding a sustainable source by saying, ‘Let’s take this tax revenue source that generates $20 million a year” … that’s not a growing rate of money. It needs to grow to cover this escalating cost.”
Albert challenged lawmakers to come up with a solution; he noted AFT-West Virginia is not endorsing a specific plan.
“It’s their job. It’s not our job to find a source for them. That’s our legislator’s jobs. That’s why we elect them,” he said.
The Finance Board will hold forums at the Beckley Raleigh County Convention Center on Wednesday at the Martinsburg Holiday Inn on Thursday. Both events are scheduled to start at 6 p.m.