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As healthcare and prescription drug costs continue to rise, with no new state funding available, the Public Employees Insurance Agency Finance Board will have to come up with about $60 million in benefit cuts to the health insurance plan for the 2016-17 plan year, says PEIA Executive Director Ted Cheatham.
PEIA has already cut $40 million imposed for the current plan year, cuts achieved primarily through increasing co-pays and deductibles.
"We are, much like last year, developing plan options to meet the financial requirements to keep the plan solvent," Cheatham said.
Simple math shows that PEIA's future is daunting.
While the political battle has been over Obamacare, the government has ignored the rapidly "free market" rising costs of healthcare, with many prescription drugs skyrocketing and becoming un-affordable for most Americans.
Obamacare and the Bush administration bill to assist Medicare recipients with paying prescription drugs, all taxpayer assistance is applied to paying the full tab of providers. Drug costs in most counties are far lower than the USA.
READ: Drug Goes From $13.50 a Tablet to $750, Overnight/NY Times
PEIA is paying out about $1 billion a year in medical and prescription drug claims for its 171,000 active insurees and 56,000 retired insurees.
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