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PEIA director to recommend changes following public hearings

CHARLESTON, W.Va. — Members of the state Public Employees Insurance Agency Finance Board will meet next month to determine a plan for how to fill a $120 million benefits hole, following a series of six public meetings held statewide.

The PEIA wrapped up the final hearing Tuesday night in Huntington. The other five meetings where held in Morgantown, Martinsburg, Wheeling, Charleston and Beckley this month where large crowds were in attendance.

“We’ve always seen 200 to 300 in a lot of these meetings,” said PEIA Director Ted Cheatham.

Several West Virginia residents have opposed the proposed changes made to health insurance costs that includes a $500 increase for state 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.

Cheatham said out of the surveys they’ve received so far, nearly 75 percent of people have disagreed with the changes. He said they asked residents if they would like to use total family income for determining premium levels and, also, if they would like to do a mandatory enrollment that would default them to another plan. Both questions received a “no” response from most residents.

“With those two items, I am going to recommend that the board not adopt those two changes,” Cheatham said.

Not all proposals will be approved, he said, but they are taking all the comments into consideration when it comes to making a final decision on the plan.

“Those things they asked about they don’t want to do we will probably not do, but many of the changes will have to go into place just to meet our fiduciary responsibility,” said Cheatham.

The proposed plan also changes the coverage for preferred brand prescription drugs. Copay for the drugs has been $25, but the new plan would take up to 30 percent of the cost of a prescription. Premiums for retirees would also increase by eight percent.

Cheatham said state lawmakers have been very involved in their public meetings. He said about 4 or 5 legislators have attended each hearing.

“Some legislators have actually spoken at some of the meetings and there’s a clear concern about the citizens that we insure from those legislators that have been in attendance,” he said. “I know the Legislature is very aware.”

Several lawmakers have said new sources of revenue may have to be looked at to cover the additional costs of PEIA.

The plan is now up for final approval before the PEIA Finance Board. A meeting is scheduled for Dec. 3 at 1 p.m.

If approved, the plan would be presented to the state Legislature. The changes would go into effect next July.





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