West Virginia Workers Resist Second Insurance Hike After Strike
- The state Public Employees Insurance Agency in West Virginia is facing criticism over proposed premium increases that could result in a 35% hike in two years for state employees. During public hearings, many workers expressed their inability to afford the increases.
- The proposed insurance premium increase is a result of the agency’s $376 million deficit earlier this year. West Virginia’s legislature passed a law in response, mandating an 80-20 cost split between the employer and employees and imposing a surcharge of around $150 for spouses opting into the state plan from their employer’s insurance.
- Despite promises from Republican Gov. Jim Justice in 2021 that premiums would not rise under his administration, an additional 10.5% increase is proposed for July next year. Gov. Justice argues that the increases are offset by raises for state employees and a cut in the state income tax. However, opponents argue that the raises are insufficient, especially considering that West Virginia teachers are among the lowest-paid in the nation.
West Virginia’s Public Employees Insurance Agency Faces Opposition Over Proposed Premium Hike
West Virginia’s Public Employees Insurance Agency (PEIA), responsible for managing health insurance for over 200,000 government employees, faces opposition due to proposed premium increases. This comes five years after public school workers went on strike due to escalating healthcare costs.
PEIA proposes a premium increase equating to a 35% hike in insurance costs over two years for state employees. Despite recent tax cuts and salary raises, workers voiced their inability to afford these increases during public hearings held this week.
During a recent virtual hearing, teacher Casey Lockerbie stated that despite a salary increase, her income is less than the previous year due to escalating insurance costs. Lockerbie, who commutes to West Virginia for work, expressed concerns that these increases could deter potential employees.
Earlier this year, the health insurance agency faced a $376 million deficit. Consequently, the GOP majority state Legislature passed a bill in July which increased health insurance premiums for state employees by roughly 25% and introduced a $150 surcharge for spouses opting for the state plan over their employer’s insurance.
New Legislation and Impact on State Employees
The legislation made it obligatory for PEIA to implement an 80-20 cost split between the employer and employees. The proposed plan would result in a further 10.5% premium increase in July next year. The agency’s finance board is predicted to vote in December, following public hearings across the state.
The proposed increase comes despite Republican Gov. Jim Justice’s 2021 promise to prevent premium hikes during his term. This follows the 2018 school employees’ strike over PEIA’s long-term solvency, which led to Gov. Justice establishing a task force to examine the issue. No significant policy changes to stabilize the budget resulted from this initiative.
Gov. Justice argues that the increases are counterbalanced by salary raises, including a $2,300 increase for state employees this year and a proposed 5% hike next year. He also signed a law cutting state income tax by an average of 21.25% across brackets. However, critics argue that these raises do not sufficiently offset the insurance cost increases, particular for West Virginia teachers, who rank among the nation’s lowest paid.
Call for Respect and Empathy
During a recent Charleston hearing, school service personnel union leader Joe White appealed to the finance board to remember the human element of their decisions. He urged respect for state employees, including organized labor and school service personnel. Retired employees ineligible for Medicare and city and county employees insured by PEIA would also face increased costs.
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