Three unions representing public workers are planning to rally about how increased insurance costs will affect their members.
Leaders and members from AFT-West Virginia, the West Virginia Education Association and the United Mine Workers of America will participate in a rally before a PEIA public hearing in Morgantown this evening.
Two of the unions represent educators statewide. The United Mine Workers, best known for representing coal miners, also represents some public sector workers like county employees in Monongalia County.
The Public Employees Insurance Agency has proposed cost increases to make up an estimated $113 million gap for the coming fiscal year. The agency’s Finance Board is taking the proposal out for public comment to areas around the state, including Morgantown tonight.
This is the first announced rally.
Kristie Skidmore, the newly-elected president of American Federation of Teachers-West Virginia, said this is a basic issue of workers trying to make ends meet.
She said it’s time to address the problem.
“This can has been kicked down the road for years. We know and we implore the Legislature to come in — you know, they have interims in December — we implore them to come in and make this their priority,” Skidmore said today on MetroNews’ “Talkline.”
“What do we need to fill classrooms? We are going to lose more people, I’m afraid, if this proposal goes through. People just can’t afford it.”
The Public Employees Insurance Agency is proposing significant premium increases and additional out of pocket costs for the coming fiscal year because medical and drug expenses have outpaced the money available.
Public employees in the plan could face premium increases of 14% for the state fund or 16% in plans for local governments. Retirees would face a 12% premium increase.
The agency is proposing increases in deductibles of 40% — on average more than $300. Additional proposed cost increases for people with the insurance, including a bump in the surcharge for spouses to $350 from the current $147, are meant to help PEIA make up a total of $113 million. The other cost increases include higher copays for inpatient services, outpatient, therapy, pharmaceuticals and emergency room treatment.
Educators went on a statewide strike in 2018 over concerns that their pay rates did not adequately compensate for the rising cost of insurance. Gov. Jim Justice’s administration dealt with the conflict with a series of pay raises.
The administration also pumped millions of dollars into a PEIA Rainy Day Fund that was meant to hold down cost increases. The fund did suppress cost increases to workers for a few years, but the practice has ended.
“Our state employees work really hard, and they do really good work — and so I tried, I tried with all in me to never increase the premiums and to never increase the cost of PEIA because these folks are not just paid outlandish salaries so they need us to stand up and help him,” Justice said during an administration briefing today in response to a question by WOWK television Mark Curtis.
Justice, a Republican who has been elected to the U.S. Senate, is winding down the final weeks of his term as governor. During the administration briefing today, he provided advice to the next administration.
“Jim knows this: Our families are hurting every way in the world and doing everything they can to get by. So from the standpoint of the future governor, my advice would be feel that and know that,” Justice said today.
“At the end of the day we need to try to take care and support our state workers and absolutely cover, more than cover, their costs or their increase in PEIA. That would be my recommendation, and we can do it but it takes business talent and people who are really good with numbers to figure it out.”
The incoming governor, Patrick Morrisey, recognized the problem and how it might affect employment decisions made by public workers when he addressed the issue during a debate last month.
“I’ve always been an advocate of teachers, and in fact, one of the things I’ve talked a lot about during this campaign is to make sure that West Virginia is competing much more effectively with all the states that we touch. That’s critical, because we touch a lot of states who end up coming in and stealing our teachers,” Morrisey, a Republican, said during the debate late last month.
“You know, if you’re listening in Jefferson or Berkeley County, I know of teachers who have moved because Loudoun County is paying them 30,000 more. If you’re in Monogalia County, you might get people that are going to run across the line. They’re going to get more money. So what we need to do is we need to compete more effectively, and certainly, teachers and first responders and our law enforcement need to compete to make sure that we’re able to retain those folks.”
Morrisey concluded his debate comments about insurance costs and public employee pay by saying his administration would have to examine the matter more thoroughly.
“We cannot afford to bleed personnel to other states,” he said Oct. 29. “I’m saying I would propose to make sure that our state workers are paid fairly, but we have to do the analysis looking at other states so we’re competitive.”
During a virtual public hearing Monday evening, educators told members of the PEIA Finance Board that they cannot afford increased insurance costs without greater compensation.
“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,” said Courtney Arnold, an art teacher in Cabell County. “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 told the board that 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.”