Is PEIA the best option?

The agency is now considering the following changes for Fiscal Year 2025: A 10.5% premium increase for state fund employees; a 13% premium increase for local government employees, plus an eligible spouse surcharge of approximately $147; and a 10% increase for non-Medicare retirees, as Senior Staff Writer Charles Young reports in today’s edition.

Gov. Jim Justice jumped in Thursday with his plan to seek another 5% pay raise for teachers and state workers to help offset their PEIA costs.

Of course, none of this happens without lawmakers in the state Senate and House of Delegates approving the changes.

“I am absolutely going to put forward another 5% pay raise,” Justice said. “It should more than offset any raises in PEIA. We need to do that, and we need to accomplish that. And, without any question, that’s what I’m going to do.”

Justice said he hopes lawmakers support the effort.

“At the end of the day, we want people to not be hurt by these increases,” he said of the higher PEIA premiums under consideration. “The increases are really and truly difficult to avoid, but we can offset with pay raises to where we will be putting at least as much money in somebody’s pocket that the increase is going to cost.”

Last year, Justice and lawmakers put together an attractive package of pay raises and tax cuts in an attempt to offset PEIA premium increases and spouse surcharges.

But that didn’t quiet all the critics who believe the state should find a permanent fix, with a revenue line dedicated to holding premiums in check.

As we’ve noted before, no insurance program can go without premium increases from time to time as costs continue to rise. And the pain of PEIA increases has to be shared by state employees and taxpayers.

Finding the right balance is the tough part, and we’re hopeful lawmakers continue to look for ways to meet the insurance needs of state workers and manage rising costs.

It may be time for lawmakers to look at other ways to provide insurance coverage to state employees. If costs can’t be contained, there may be better options to improve coverage for workers while keeping expenses in check.

West Virginia has turned to alternative means in the past to address troubled programs, such as workers’ compensation.

Is it time for lawmakers to move in that direction? We think they’ll have to at least consider alternatives if PEIA funding remains an issue.