An editorial from The Inter-Mountain
ELKINS, W.Va. — West Virginia’s next governor will be behind the eight-ball, with no choice but to focus his energy on balancing the state budget. Still, a variety of other pressing issues will demand attention.
One of them is the Public Employees Insurance Agency. Getting its expenses under control is imperative, both to avoid pain for those enrolled in the system and to prevent it from draining even more from the general fund budget.
It came as no surprise last week when PEIA Finance Board members approved trimming $25 million in benefits, beginning in the 2017-18 year. Their reasoning is that prescription drug prices are increasing faster than had been expected.
In addition to reductions in benefits, some of the PEIA’s about 200,000 clients may find themselves paying higher premiums. They will be set based on family income, meaning beneficiaries making more money will pay more for coverage.
Ted Cheatham, executive director of the PEIA, has said one challenge for the program is that it is a relatively small system. Because of that, the agency does not have much clout in negotiating with pharmaceutical companies to hold down drug prices.
After last week’s announcement, Cheatham commented that, “It may be worthwhile to get our next governor on board, to do something on a national front.”
Obviously. One potential strategy might be to join forces with other small states to form a pool that, with a larger number of clients, could enjoy more leverage in dealing with drug companies and holding down costs.
No doubt both state Senate President Bill Cole and businessman Jim Justice, the leading contenders for governor, would be delighted to try that.
That puts the ball in the PEIA’s court. Cheatham and others at the agency should begin exploring the idea of a multi-state pool right now. Other states should be contacted to determine whether their officials are interested.
It may be possible to have a plan ready by early next year, in time for the new governor and, if necessary, legislators to address it. A turn-key plan would be welcomed by the policymakers and could get a program to save money for the PEIA in place sooner.
