West Virginia Employees Face Mounting Costs as PEIA Proposes Premium Hikes and Benefit Cuts

In a move that has left many West Virginia public employees and retirees reeling, the state's Public Employees Insurance Agency (PEIA) Finance Board has unveiled a draft proposal for the 2026 fiscal year that includes a third round of premium increases since March 2023, as well as a slew of other cost-cutting measures. The proposed changes have sparked outrage among union leaders and workers, who argue that the burden is being unfairly shifted onto the shoulders of those who can least afford it.

Tackling the Rising Costs of Healthcare for West Virginia's Public Sector

Proposed Premium Hikes and Surcharges

The PEIA Finance Board's draft proposal for the 2026 fiscal year includes a plan to increase premiums for the third time in less than a year. This comes on the heels of a 24.2% premium hike approved in March 2023, followed by a 10.5% increase in December of the same year. The latest proposal suggests further premium increases, as well as an increase in spousal surcharges, copays, and deductibles.These proposed changes have been met with strong opposition from the West Virginia Education Association (WVEA) and its president, Dale Lee. Lee described the draft as "shocking," stating that "plan participants should not shoulder all the draft changes out of their own pockets." He questioned the rationale behind these increases, particularly given the state's reported record revenue surpluses.

Shifting the Burden to Employees and Retirees

The PEIA Finance Board's draft proposal has been criticized for its apparent shift in the burden of healthcare costs from the state to its public employees and retirees. Lee expressed concern that the proposed changes would result in employees and retirees having to pay more out of their own pockets, a move he deemed "totally unacceptable."This sentiment is echoed by many public sector workers, who are already struggling to keep up with the rising cost of living. The prospect of having to shoulder an even greater financial burden for their healthcare coverage has left them feeling frustrated and disillusioned.

Potential Impact on Recruitment and Retention

The proposed changes to PEIA's healthcare plans could have far-reaching consequences for West Virginia's public sector workforce. Experts warn that the increased costs and reduced benefits may make it more difficult for the state to attract and retain talented employees, particularly in fields such as education, where competitive salaries and benefits are already a challenge.This could exacerbate the ongoing staffing shortages in critical public services, further straining the state's ability to provide essential services to its citizens. The potential impact on the quality and availability of public services is a significant concern for both policymakers and the general public.

Calls for Transparency and Accountability

As the PEIA Finance Board prepares to release the full plan and schedule public hearings on October 24th, there are growing calls for greater transparency and accountability in the decision-making process. Unions and advocacy groups are demanding a more inclusive and collaborative approach, one that takes into account the needs and concerns of the state's public sector workforce.Many are also calling for a closer examination of the state's financial situation and the allocation of resources, questioning whether the burden of healthcare costs should be placed solely on the shoulders of employees and retirees. The PEIA Finance Board's actions will be closely scrutinized in the coming months, as the debate over the future of public sector healthcare in West Virginia continues to unfold.