The Impact of PEIA's Proposed Increases on Educators and Retirees
Meeting Across the State
The PEIA finance board had been conducting meetings across the state over the last two weeks. Stops were made in Beckley, Wheeling, Martinsburg, Morgantown, and finally Charleston. Additionally, a virtual meeting was held earlier in the week. This extensive outreach aimed to gather diverse perspectives and concerns.These meetings provided a platform for various stakeholders to voice their opinions and share their experiences. It was a crucial opportunity for the board to understand the real-life implications of the proposed increases on different individuals and communities.
For example, Dale Lee, the President of the West Virginia Education Association, emphasized the significance of these meetings. He stated, "I've attended all the in-person meetings, and you hear the same thing. It's actually putting a face to what these changes will do." This shows how these meetings help bring the abstract proposals to life and make them more tangible for everyone involved.
The Impact on Premiums and Deductibles
The proposed increases for the 2025-26 year are aimed at accommodating the immense anticipated prescription drug costs. These costs have far exceeded the available funds, leaving the agency with no other option. As a result, employees under the agency are facing premium increases of 14% for the state fund and 16% for local governments. Moreover, there are increases in deductibles of 40%, which amounts to an average of $300.This significant financial burden is likely to have a profound impact on the daily lives and financial stability of those affected. It raises concerns about their ability to meet their healthcare needs and manage their finances in the face of these escalating costs.
Robert McCloud, a teacher and member of the Kanawha County AFT executive board, highlighted the critical situation. He said, "We are at a crossroads where we can't afford to have PEIA, but on the reverse, we can't afford not to have it." This statement captures the dilemma faced by many under the agency, as they struggle to balance the need for healthcare coverage with the financial strain it imposes.
Retirees' Perspective
PEIA's original five-year plan showed retirees in the state having increases of 10%. However, the new proposal has retirees seeing a 12% increase, with further escalations to 15% in 2027, 17.5% in 2028, and 20% in 2029. Spud Terry, a retiree of over two decades and the president of the retirees with the American Federation of State, County and Municipal Employees in West Virginia, expressed his concerns.He said, "Bottom line is that the retirees, like me, just cannot afford more and more." This highlights the difficulties faced by retirees on a fixed income who are already struggling to make ends meet. The continuous increase in premiums and deductibles poses a significant challenge to their financial well-being.
Dinah Adkins, the Kanawha County Education Association President, also emphasized the importance of treating state workers, educators, and retirees well. She said, "We've got to take care of our employees. We've got to build up a system that makes West Virginia look good because right now, if I were a business coming into West Virginia and I saw how your public employees were treated and how your teachers are the lowest (paid) in the nation, I'd high-tail it out of here and head someplace else." This shows how the treatment of these groups can have a direct impact on the state's attractiveness to businesses and its overall economic development.
The Role of the Legislature
Once the PEIA Finance Board meets in December to discuss the proposal further and make a vote, the matter will fall into the hands of Governor-elect Patrick Morrisey and the Legislature. In 2023, legislation was passed mandating the plans to go to an 80-20 split.Mike Pushkin, who also serves as West Virginia Democratic Party Chairman, emphasized the importance of the Legislature's role. He said, "Much of this falls on the Legislature, and I don't envy your position here as members of this board. I've been coming to these hearings over the last 10 years since I've been in the Legislature. We're saying all the same things, and all the same problems keep re-occurring because it hasn't been a priority of the Legislature or the Executive branch for that matter." This highlights the need for collective action and collaboration between different branches of government to address the issues at hand.
Pushkin also expressed disappointment at the absence of many Legislators and people of power. He said, "You know who's not a priority of the Legislator? Y'all. People who take care of the state. People who take care of us. Not a priority in our state Legislature." This shows the disconnect between the concerns of the affected individuals and the actions of the Legislature.
The Need for Allies
Matthew Lyon, a teacher in Putnam County, emphasized the need for the PEIA Finance Board to be an ally for state workers. He said, "I don't think you're our enemy, on the board, but we need you to be our ally. You probably have a lot more power than any of us to get ahold of the governor or legislators, and we need you to tell them that we need help to fix this." This shows the trust and reliance placed on the board to advocate for the interests of those affected.The PEIA Finance Board will now vote on the 2025-26 plan on December 5. Changes will go into effect at the beginning of July. The outcome of this vote will have a significant impact on the lives and careers of educators, state workers, and retirees under the agency.