West Virginia union leaders call on lawmakers to stabilize PEIA costs

Yahoo

26-02-2025

Kristie Skidmore, president of the AFT-WV, and Dale Lee, president of the West Virginia Education Association, speak during a press conference on Wednesday, Feb. 26, 2025. The union leaders are calling on lawmakers to stabilize the costs of PEIA. (Lori Kersey | West Virginia Watch)
Union leaders representing West Virginia's public workers on Wednesday once again called on lawmakers to come up with solutions to stabilize the rising costs of health care coverage for state employees.
Representatives of six unions held a joint news conference at the state Culture Center in Charleston, just across the state Capitol Complex from where lawmakers are conducting business as part of the regular legislative session.
'We're asking the Legislature to do what the Legislature said they would do and what they're obligated to do, and to stabilize [the Public Employees Insurance Agency] for the public employees in the state of West Virginia,' said Joe White, executive director of the West Virginia School Service Personnel Association.
'Folks, PEIA is a benefit. It was promised to the public employees in the state of West Virginia,' he said. 'Pay your bills, pay for the insurance for the public employees that serve the great state of West Virginia.'
In December 2024, the PEIA finance board approved premium increases for fiscal year 2026 of 14% for state employees and 16% for local local government employees in addition to out of pocket and copay increases. The fiscal year starts in July. The agency will also raise premiums by 12% for retirees.
Agency officials have said that rising health care costs, particularly inflation for prescription GLP-1 drugs that treat obesity and diabetes, are a major driver of the rate increases.
White illustrated the PEIA cost increases over the last few years using Harrison County as an example. One employee saw the costs of PEIA rise from $2,876 in 2023 to a projected $8,152 in 2026, not including increases in co-pays, prescription costs and deductibles, he said.
While Gov. Patrick Morrisey called on lawmakers in his State of the State address to work with him on long and short-term solutions for PEIA, Josh Sword, president of the ALF-CIO, said he had not seen a budget bill with an amount of money for PEIA that would make the program right.
'I want to see, personally, and I think I can speak on behalf of the folks behind me, PEIA become a priority when it comes to budgeting,' Sword said. 'Both the governor's office and both chambers of the Legislature. If they do that, then I think we have a real opportunity to get to a place we all agree. Unless that happens, I have real concern.'
During a budget hearing Wednesday morning, PEIA acting director Jason Haught echoed previous comments from former director Brian Cunningham that the inflation of prescription drugs costs are driving the cost increases for PEIA. Haught said the country needs to set a fixed rate for pharmaceuticals the way that hospital and physician services rates are fixed.
'[Pharmaceutical] manufacturers get to set the list price of whatever amount they want, and there's no regulation on that list pricing,' he said. 'So I think that has produced some unsustainable cost trends to the healthcare marketplace.'
The agency expects its costs to rise by 60% over the next five years, driven primarily by the cost of prescription drugs. The state's health is also a factor, he said.
'At the end of the day, if you don't want health care costs, you've got to have a healthy population,' Haught said. 'Unfortunately, we're sick and old. That does not translate to an easily solved health care cost in this state. That's your bottom line, I think. We need to get younger and we need to get healthier. That's going to reduce that trend.'
So far, six bills concerning PEIA have been introduced in the House and three in the Senate. Proposals have included abolishing and privatizing the health insurance plan. Another bill would make PEIA into a health savings account.
Elaine Harris, the international staff representative for district 213 of the Communications Workers of America, spoke against privatizing PEIA.
'Folks. That's not the answer,' she said. 'PEIA is not a for-profit plan. It is money in on premiums and the way that the agency makes all of the dollars work, and then it's money out, paying claims, paying for the high cost of drugs.'
Harris said the state and the federal governments need to address the high costs of drugs.
Dale Lee, president of the West Virginia Education Association, said that this year there are more than 1,500 unfilled teaching positions across the state without a certified teacher. He predicted that the number of unfilled positions would increase in years to come, as teachers leave the state for better benefits and pay.
'I've heard Gov. Morrisey say that he wants to make our salaries competitive with other states,' he said. 'That is important, but just as important is to stabilize PEIA.'
Union leaders asked state lawmakers to implement some of the policy recommendations that came from a 2018-2019 task force formed after the teachers strike. None of the recommendations 'ever saw the light of day,' Lee said.
'I'm calling upon everyone to get us back to the table,' Lee said. 'Let's come back to the table. There are things that we can do to help stabilize this plan, but the important part is we have to be at the table. That's what I'm asking that the Legislature, the governor, do. Bring us back, and let's figure out this plan in a way that makes sense.'
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