PEIA Task Force stretches for the finish line

CHARLESTON, W.Va. — The PEIA Task Force, an outgrowth of a statewide teachers strike, is winding toward a conclusion.

But is PEIA fixed?

That was the goal expressed by thousands of West Virginia teachers as they picketed last winter.

The PEIA Task Force was set up by the governor to address concerns about increasing out-of-pocket costs. Task force members toured the state to hear people’s concerns.

Now, the task force is set to meet at 1 p.m. Monday to make final recommendations about the Public Employees Insurance Agency.

Mike Hall

“The goal is to wrap it up and make recommendations to the PEIA (finance) board, but also to report to the Legislature,” said Mike Hall, chief of staff for Gov. Jim Justice.

Task Force members are likely to discuss a proposal aimed at providing greater flexibility for public employees who seek medical care across West Virginia’s border.

They may also discuss — but might not yet resolve — longstanding questions about PEIA’s many income-based tiers.

“The goal is that the committee will adopt the governor’s recommendations,” Hall said.

“The funding issue will be recognized that the governor has proposed the $100 million solution — or commitment over and above what we currently pay.”

Gov. Jim Justice took some pressure off earlier this year when he promised $100 million meant to shore up PEIA.

State leaders described that money as meant to mitigate against out-of-pocket increases in the future.

Rob Alsop

“The commitment for the $100 million really solidified PEIA for the next couple of years,” said West Virginia University vice president Rob Alsop, who led the task force’s coverage and plan subcommittee.”

The agency’s own budget has been stable lately anyway.

Through September, PEIA was running a surplus of about $35 million on its budget that covers active employees and a surplus of about $70 million on the budget that covers retirees.

The trick is, PEIA officials have described needing an additional $50 million year over year to pay for increasing health care costs.

A severance tax increase for natural gas was discussed early in the task force process but rarely came up in recent months.

“Economic growth, whether it’s a dedicated revenue stream or not, is the real key that’s going to solve PEIA, funding for higher education and a whole number of other things,” Alsop said.

Jim Justice

Justice, speaking at a press conference last week, described potential unintended consequences of raising the severance tax on natural gas.

“What if we did that and it drove our gas severance and our revenues down? What if that happened?” Justice asked.

“What if, basically, we drove those people out of state that are buying Big Gulps and paying income taxes and everything else that’s happening here? What if we did that?

“Well, then all of a sudden, this dedicated revenue source has really hurt us.”

Justice did agree, though, that more money will additionally need to be identified to pay for increasing health care costs.

“The bottom line is, our government is going to have to find a way to dedicate additional resources to preserve PEIA the way we’re going,” he said.

Next year, he said, if more money is available from the General Fund then he would recommend putting more toward healthcare benefits for public employees.

“If we look like next year that we’re going to have additional monies, let’s put more money in it, and let’s continue to do so to assure that those people can go home and the peace of mind to be OK,” he said.

The governor made recommendations to the task force aimed at providing greater flexibility for people who seek medical care just across West Virginia’s border.

Medical treatment at facilities contiguous with West Virginia’s border would be on par with what public employees pay for care inside the state border.

Amy Loring

“It will provide greater flexibility,” said task force member Amy Loring, a human resources specialist for Berkeley County Schools.

“And it will help those who have long-term health issues with their current providers, that they don’t have to switch and find new providers who don’t have their health history.”

Loring also suggested state officials should take a longer view of PEIA’s income-based tier system.

Reaching a conclusion on that issue seems unlikely in the short term.

“The concern has been that whenever an employee does receive a salary increase that they may jump into a higher tier, so that would nullify the increase that they got,” Loring said.

“I’m not sure what that looks like to resolve that, but it definitely needs to be looked at because it is a concern.”

Dealing with the tier issue has been complicated over the years, PEIA Director Ted Cheatham told task force members.

He welcomed the continued influence of the task force.

“It’s a very big lift,” Cheatham said. “I would love to see the task force more involved with helping us do that out of these discussions.”





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