Charleston Gazette-Mail
Most of the major problems in any category in West Virginia can be addressed in three steps: finding enough money, properly spending it and maintaining that revenue. All too often, the state doesn’t even get to step two.
Yet, this is what it is going to take to fix the state’s Public Employees Insurance Agency. And, make no mistake, PEIA needs fixing in a way that doesn’t put a further financial burden on state employees, including public educators. That’s not to say premiums or deductibles can’t increase, but, if lawmakers are wise, they’ll look for ways to make that increase as negligible as possible.
Although, whether the Legislature will even look to do that is in doubt. Sen. Tom Takubo, R-Kanawha, said last month that PEIA is among the cheapest health insurance benefits packages anywhere in West Virginia. Senate Finance Committee Chairman Eric Tarr, R-Putnam, said in a written statement that PEIA premiums and deductibles pale in comparison to costs in the private sector, and public employees, who have been getting consistent raises and have seen PEIA rates increase only once in the past six years, shouldn’t be complaining.
Certainly, there’s some truth to what Takubo and Tarr have said, but the issue is more complicated than it might seem (something Takubo acknowledged). Premium rates didn’t just go up for the first time in six years, they jumped up by almost 25%. And state employees are now facing another 14% to 16% hike in premiums, along with a 40% increase for deductibles and caps on out-of-pocket spending. Higher co-pays are also being proposed, as the PEIA board looks to implement $113 million in cost increases to cover rising medical costs.