CHARLESTON, W.Va. — As the Kanawha County Commission continues to evaluate whether to switch to Public Employees Insurance Agency health care coverage, Charleston officials are ready to switch to the insurance provider.
The change will be included in Mayor Amy Goodwin’s proposed budget for the next fiscal year, which is set to be announced at Charleston City Council’s March 2 meeting.
The Kanawha County Commission is discussing a switch to PEIA, citing a $700,000 annual increase in expenses. The commission will decide on being part of PEIA before the next fiscal year begins in July.
According to city manager Jonathan Storage, health insurance costs are expected to increase by $2.5 million next year.
“That is by far the single largest expense growth item we have in our anticipated budget coming up if it were to stay status quo with no change,” he said.
The Goodwin administration had to address a $3 million budget deficit in its first budget last year.
“This would almost consume that entire deficit alone,” Storage mentioned.
Charleston is self-insured when it comes to health care. Storage noted employees pay low premiums and receive “very generous benefits,” including a $300 annual deductible.
“The last health insurance premium increase for city employees and beneficiaries — including retirees — was 2011. That is an unheard of, unprecedented nine-year stagnation in premium rates,” Storage said. “They just weren’t adjusted for increased health care costs.”
Storage could not give data on how much the city would save if a switch to PEIA happened, but said a change in insurance could benefit employees in multiple ways; the last salary increase happened in 2015.
“It’s not a cure-all, but it’s the best way that we can increase employee salaries, reduce costs and increase savings all in one fell swoop,” he said.
Charleston City Council approved the first Goodwin budget last March with only one dissenting vote, Councilmember Shannon Snodgrass.