Other editors: PEIA and the ghost of problems past
What sometimes gets forgotten about the statewide public teacher and school service personnel strike in 2018 is that it wasn’t only about wages.
After 10 days, teachers went back to work with a 5% bump in pay, but also a promise from Gov.
There’s been less talk about PEIA since that strike, as teacher unions have battled charter school legislation and sparred with the governor and state agencies over the safety of schools during the COVID-19 pandemic. But just because the issue hasn’t been on everyone’s lips doesn’t mean the problem went away.
While premium hikes through PEIA — which also covers other state government employees — have mostly been held at bay, a plan presented to the agency’s finance board this week projects that premiums will go up by 9% in the 2023-24 fiscal year, then by 16% the following year, and another 12% over the two years after that. The rate hikes are needed, to cover projected increases in medical costs. In all, it will mean a total of about
Teacher unions say their members won’t be able to afford such steep hikes, with
So, what happened?
After Justice promised to fix PEIA, he formed a task force to tackle the job. He also authorized a one-time infusion of cash from the state to ward off immediate rate hikes. That temporary financial boost, along with better-than-expected returns on investments, froze premium rates for four years, including the upcoming fiscal year.
The task force conducted public meetings throughout 2018, seeking input and apparently developing a long-term solution to the PEIA problem. Then, it dropped off the face of the earth. The last time the task force met was in
PEIA has been out of sight, out of mind for Justice and the Legislature. As a result, the problem is much more critical now than it was in 2018. What Justice did in 2018 bought some time. It’s conceivable that he or the Legislature would do something similar, to soften the blow of upcoming rate increases. But what good is buying time if you don’t do anything with it?
Eventually, a long-term solution is needed. The trouble is that solution likely involves a steady revenue source in a state where excess funding is a cruel joke. In any case, the state needs to figure this out. Temporary fixes only make the issue more difficult down the road.


PEIA: No health plan premium hikes next year, but ‘doom is coming’
Local briefs
Advisor News
- Demonstrating the value of life insurance to Gen Z
- Poor money habits are a dealbreaker in a new relationship
- DC plan sponsors see opportunity in alternatives
- The American Dream: Redefined as financial stability
- Partial annuitization: How advisors can help clients balance income, growth
More Advisor NewsAnnuity News
- CA judge certifies class action in teachers’ lawsuit over in-plan annuity fees
- Globe Life Inc. (NYSE: GL) Records 52-Week High Thursday Morning
- AM Best Managing Director Joins ‘Target Topics’ Podcast to Discuss State of Delegated Underwriting Authority Enterprises Market
- KBRA Assigns Rating to TruSpire Retirement Insurance Company
- Partial annuitization: How advisors can help clients balance income, growth
More Annuity NewsHealth/Employee Benefits News
- Copay assistance is meant to defray patient drug costs. Some insurers keep it instead
- Amid claims of 'playing politics,' Auburn council amends city manager's contract
- OCWNY to hold seminar for disability beneficiaries Friday
- Atrium pushes back after State Health Plan leaves healthcare network out of Tier 1
- Douglas Veterans Claims Clinic Connects Rural Veterans With Critical Services
More Health/Employee Benefits NewsLife Insurance News
- Globe Life Inc. (NYSE: GL) Records 52-Week High Thursday Morning
- AM Best Upgrades Credit Ratings of Sagicor Financial Company Ltd. and Most of Its Subsidiaries
- Trust, technology and the future of claims
- New York Life Launches an Indemnity Benefit for its Asset Flex Long-Term Care Insurance Solution
- AM Best Affirms Credit Ratings of DB Insurance Co., Ltd.
More Life Insurance News