| By Bob Weaver
The state Public Employees Insurance Agency Finance Board has voted to raise health insurance deductibles, co- pays and out-of-pocket maximums for state workers and teachers.
The increase is a major hit to pocketbooks, with WV teachers being among the lowest paid in the USA and most state employees surviving on relatively low wages.
PEIA
is a $120 million in the hole.
PEIA approved a $500 increase for state workers on an individual plan and $1,000 for those with a family plan.
Out-of-pocket maximums would jump $1,500 for one person and $3,000 for a family.
Significantly affected - retirees.
"We had no option to raise premiums at this point because of statutory language saying that the employer pays 80 percent and the employee pays 20 percent of premiums," said PEIA Director Ted Cheatham.
The plan also changes the coverage for preferred brand prescription drugs. Co-pay for the drugs has been $25, but the new plan would take up to 30 percent of the cost of a prescription.
People that are using drugs at the preferred brand level are going to be impacted.
AFT-WV President Christine Campbell spoke at the meeting, explaining that economic hardships from these increased healthcare costs will reach far beyond public employees.
"We haven't even begun to address the effect on our communities when thousands of families are driven into poverty, in addition to those who are already there, said Campbell.
"These are the same families that support our youth programs, churches, food pantries, volunteer fire departments and other charitable groups, as well as our local businesses," she said.
Elaine Harris, a CWA International Representative, who represents workers in the Department of Public Safety, said the cuts are too much to deal with for many state employees.
"My role on this board is to represent workers and retirees and every single one to whom I've spoken or heard speak at public hearings has said they are scared they're not going to be able to meet other obligations with the proposed benefit cuts and out-of-pocket costs that would be put on them," Harris said.
PEIA did make a motion to send a letter to the WV Legislature supporting a tobacco tax where the funds could be used to offset the insurance costs.
"Obviously, the plan needs additional monies," said Perry Bryant, a former PEIA board member and health care policy expert who supports a tobacco tax increase to cover the costs.
PEIA's Finance Board voted to urge state lawmakers to support legislation that would raise the state's tobacco tax, with 100 percent of the additional revenue earmarked to stave off the PEIA cuts.
Increasing the state's cigarette tax would raise $112 million extra a year. Additional taxes on smokeless tobacco and electronic cigarettes would provide enough money to reach the $120 million needed to keep existing benefits intact.
State Senate President and Republican candidate for governor Bill Cole, R-Mercer, said he opposed any such tax increases to fund state employees' PEIA coverage.
County governments and other quasi-state agencies who use PEIA are not directly affected by the decision, although they are subject to raising premiums for employees.
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