Charleston, WV WOWK — State employees and teachers in West Virginia may soon face significant increases in their Public Employees Insurance Agency PEIA health plan costs, raising concerns that these hikes will negate any recent salary increases.
The PEIA is discussing a 14% increase in employee health premiums alongside a 40% rise in medical deductibles and a proposal to double premiums for spouse coverage.
This issue echoes past struggles, notably the teachers’ strikes in 2018 and 2019, where educators sought not only salary increases but also protections against rising insurance costs and benefit cuts.
Governor Jim Justice acknowledges the need for further pay raises to help offset these costs but emphasizes the challenge of balancing the budget. Union leaders, however, argue that the proposed increases and cuts place an unfair financial burden on employees.
Dale Lee, President of the West Virginia Education Association, stated that employees could be responsible for bearing up to 42% of these increased costs, which is unfair.
The rising medical costs, particularly for prescription drugs, are cited as key factors behind these proposed increases, with projections of a $113 million rise in expenses over the next year. Unions are advocating for the next legislature and governor to prioritize funding for PEIA.
A critical timing issue complicates the situation, as PEIA must finalize its health plan by January 1, while the state legislature won’t convene until mid-February.
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