The association that represents county governments in West Virginia is expressing concerns about the rising cost of health insurance about to hit some local workers particularly hard.
The Public Employees Insurance Agency announced its proposal for the coming year, with most costs being held down.
But there was sticker shock for part of the plan that applies to non-state agencies that participate, like county governments.
Premiums for non-state funds, the local governments that participate in PEIA, would rise 4% for most plans and 24% for the Gold high-deductible plan, alongside 2% benefit modifications.
It’s that steep hike for the Gold high deductible plan that’s worrying the West Virginia Association of Counties.
The association says additional costs could place significant financial pressure on county governments, their employees and the communities they serve.
“Counties are running out of revenue, with skyrocketing jail costs and other obligations making it increasingly difficult to cover these PEIA premium increases,” Mercer County Commissioner Greg Puckett said in a statement released by the counties association. “We will end up losing good employees because of this.”
The association says about 32% of local PEIA policyholders are enrolled in the Gold plan that is subject to the big hike, with many choosing that plan when perceiving it as a more affordable coverage option.
The association maintains that a more measured approach would allow PEIA to assess the financial effects of recently implemented changes while providing local governments and employees greater predictability in planning for future health insurance costs.
The West Virginia Association of Counties contends local governments and their employees have already experienced substantial increases in health insurance costs, especially from 2023 through 2027 when premium increases compounded about 66 percent.
The association is pushing PEIA to provide increased financial clarity by publishing quarterly Gold high deductible plan claims and loss-ratio information to help employers, employees and policymakers better understand the factors driving proposed premium increases.
Jonathan Adler, executive director of the association of counties, acknowledged financial pressures facing PEIA while emphasizing the need for greater transparency and more frequent reporting.
“WVACo appreciates the PEIA Board holding these meetings and explaining the changing health care premiums for our county employees,” Adler said.
“We understand that the proposed 24% increase for the Gold plan reflects claims that have far outpaced premium revenue. We ask that the Board provide quarterly reports detailing these disparities between claims and revenue so local governments can better anticipate and prepare for possible rate increases. We need this information on a more regular basis.”
The association is asking PEIA to take several steps, including a reconsideration of the proposed 24% Gold plan increase — or a phase-in over at least two years to reduce the immediate financial burden on local governments and employees.
And the association is asking for delayed enforcement of a 50% participation requirement while local employers and their employees adjust to changes in premiums and benefits.
The association would also like additional financial relief, including potential use of available PEIA and retiree health benefit resources, subject to applicable restrictions and legislative authority.
At a meeting late last month, PEIA Director Brent Wolfingbarger said the state insurance provider is a very lean operation, with minimum overhead.
“We also took into consideration stronger than expected fiscal year 2026 results. PEIA finished fiscal ’26 substantially ahead of plan, primarily due to lower than forecasted medical and prescription drug claims,” he said.
But on the non-state fund, he described worrisome trends: “Based on the non-state fund’s medical and prescription drug claims in fiscal 27 to date and its historical trends, our actuaries currently project that its fiscal year 2027 expenses will exceed its premium revenues by approximately 10 million dollars, primarily due to its Gold high deductible health plans’ poor financial performance.”
Going on right now for PEIA is a series of public hearings about the plan for the coming year. What remains on the schedule is:
Nov. 12, virtual meeting via Meeting Link: meet.google.com/ekx-vfac-pfy or phone: 1-941-800-3158 PIN: 432 061 428#
Nov. 16 at Shepherd University’s Student Center Storer Ballroom, 210 North King Street, Shepherdstown;
Nov. 17 at the WV Capitol Complex, Building 3, 1900 Kanawha Boulevard East, Charleston;
and Nov. 19 at River City Restaurant, 1400 Main Street, first floor, Wheeling.
All six hearings follow the same schedule: registration and speaker sign-in begin at 5:30 p.m., and the public hearing begins at 6 p.m.