CHARLESTON, W.Va. — Health insurance claims are down for the first time in about two years for the state Public Employees Insurance Agency.
PEIA interim director Jason Haught told the PEIA Finance Board Thursday state workers and others covered by the plan are finally getting through all of the post-covid medical procedures.
“There was so much pent-up demand for health care created during the covid period that we really just continued to see this significant utilization of health care and not just doctor visits but significant cases,” Haught said.
Claims are 9.7 percent below estimates for the plan year, Haught said.
“We’re finally starting to see some results that give us some optimism that we haven’t seen for 18 to 24 months,” Haught said.
The cost-driver for PEIA continues to be prescription costs. It’s one of the main thrusts for finance board-approved 14 percent premium and deductible increases for PEIA plan members beginning July 1. Haught said the prescription costs are no better eight months into the fiscal year.
“We projected a 15 percent (increase) and we’re still beating it. That’s troubling,” Haught told the finance board. “You don’t want to see a 15 percent trend on anything except revenues.”
Haught did credit former PEIA Executive Director Brian Cunningham for getting the state a better deal on prescription drug rebate guarantees with the providers. He said that will help cut down on the costs.
Haught said PEIA is $21 million ahead of plan projections so far this budget year. He said that’s not counting a $58 million reserve approved by the legislature. Haught said they hope not to have to use the reserve this fiscal year.
Privatization talk
West Virginia Education Association President Dale Lee once again urged the finance board to work toward ways to lighten the burden of cost increases on state workers. Lee also said he’s sensed no momentum at the legislature to privatize the state’s health insurance program.
“We have been able to squash the talks of privatizing PEIA. They understand it’s not the best interest of the employees or in the best interest of the state,” Lee said.
Lee and other union leaders said they are remaining vigilant on the issue at the statehouse.