CHARLESTON, W.Va. — Kanawha County Del. Larry Rowe says state workers have every reason to be upset about the proposed changes the Public Employee’s Insurance Agency has made to increase health insurance costs.
“I think it’s a fair concern. I think it’s something legislatures got to address and candidly, we’re going to have to look at new revenue sources in order to pay for those costs,” Rowe told MetroNews.
The PEIA proposed $120 million cuts in coverage. That includes a $500 increase for workers on an individual plan and $1,000 for those with a family plan. Out-of-pocket maximums would jump $1,500 for one person and $3,000 for a family.
Large crowds have attended PEIA hearings that have been held across West Virginia during the past few weeks with concerns about the hike.
“It’s a very complex situation, but I think it’s clear that the legislature’s view of tax reform is a way of reducing business taxes is not realistic,” said Rowe.
Rowe said state lawmakers are going to have to look at new revenue sources that can’t all come from consumers. Some have suggested a tax increase to raise additional money to cover the additional costs of PEIA. Rowe said finding additional money wouldn’t be easy, but they want to remain fair.
“I think we’re going to have to step back and come up with a very comprehensive plan that doesn’t just tax one group over another, but it’s pretty clear we will need new revenue,” he said.
The final public hearing is this week in Huntington. The plan will be up for final approval before the PEIA Finance Board next month.