The Public Employees Insurance Agency Board continued its public hearings Monday dealing with upcoming premium increases and additional out of pocket costs for next fiscal year.
PEIA held an open virtual hearing Monday evening, and around a dozen people gave their opinions, suggestions and frustrations to agency director Brian Cunningham.
The concerns stem from PEIA’s recently proposed increases of 14% for the state fund or 16% in plans for local governments, and public employees would also see increases of nearly 40 percent in deductibles under the new plan, which is more than $300 on average.
In addition to current public employees seeing increases in the proposed plan, retirees in West Virginia under the agency would also face heftier payments, as a 12 percent increase in premiums for non-Medicare retirees is part of the proposal.
John Riddle, from Jackson County, says he understands that the PEIA board is trying to maintain its budget with continued inflation in prescription drug costs, but state retirees can’t see this much in increases.
“I realize what the finance board is trying to do. You’re trying to balance the act, you’re trying to help us in that manner, but I’m telling you, for retirees on a fixed income, 14 or 15 percent increases in anything is draconian to us. It’s unbearable,” Riddle said. “We have no way of catching up, since we’re not active and we’re not employed, of catching up on these particular increases.”
Fred Albert, former president of the West Virginia Chapter of The American Federation of Teachers, says he is worried about the future for retirees under PEIA.
“Reaching the age of near retirement myself or soon to retire, I am very concerned, not just for myself, but for our retirees, who have dedicated their lives to students and the public,” Albert said. “I just think that it’s a shame that this is coming to this because, we know for many years, retirees didn’t have to have these increases, but now, it seems like it’s an extra burden and I just hope that we can look for a different way so that we can support those who gave so much of their lives to our students in the classroom and in the communities that they served.”
PEIA has said that one of the leading drivers in the costs of prescription drugs are GLP-1 drugs, which aid in fighting diabetes and obesity. Cunningham said that the GLP-1 drugs were responsible for nearly $53 million, or 20 percent of PEIA’s net drug spend in 2024.
Courtney Arnold, an art teacher in Cabell County, says while PEIA has to make adjustments, the large increases will drive teachers and other public employees away.
“I understand that there’s inflation and there’s costs that are going up, but we have to be taken care of on the other end,” Arnold said. “And I know that’s not up to you as a board, but I do think that it is a huge deal. We can’t raise things 15 percent and expect people to be able to want to stay here.”
Arnold also says if PEIA’s current plan goes through, she will consider going across the state’s border to find better insurance.
“I’m a nationally board-certified teacher and I will drive to Kentucky if this happens,” Arnold said. “I love West Virginia. I work two miles from my house, and I don’t have plans to leave, but this conversation does make me very anxious.”
Jaime Tallman says the board needs to take into consideration the quality of service in the state as well before implementing increases.
“We used to be called ‘customers’ and we used to be treated as such, but that’s changed in just about everything, and I think the board needs to understand to try to improve the service we’ve been getting,” Tallman said. “This pay (increase) is going to set us all back 15 or 20 years or more. I want one thing, for the finance board to make sure that we know what we’re talking about, and service needs to improve.”
The PEIA board will hold an in-person meeting at 6 p.m. Tuesday at the Erickson Alumni Center in Morgantown. The board will finish up public meetings on Thursday with a meeting at the State Culture Center in Charleston.