PEIA Finance Board approves 2022-23 benefits plan with no premium hikes — but deficits loom

CHARLESTON — For the fourth straight year, the Public Employees Insurance Agency Finance Board on Thursday approved a new benefits plan with no premium increases for state and public school employees for the 2022-23 plan year, which begins July 1.

While projections are for 9% employee premium increases for the 2023-24 plan, agency interim executive director Jason Haught said Gov. Jim Justice has pledged the state will cover those costs.

However, presidents of the state's two teachers unions raised concerns Thursday about projected 16% and 12% employee premium increases projected for the following two years, at a total cost of $39.2 million.

"I have concerns after this governor leaves office, because we have deficits looming in the future," West Virginia Education Association President Dale Lee said. "We can't wait to 2025 to start to come up with solutions for PEIA."

Fred Albert, president of the state chapter of the American Federation of Teachers, said he is grateful for another year with no premium hikes, and for Justice's proposal Thursday to give public school and state employees a 5% pay raise in 2022, but said more needs to be done to recruit and retain teachers.

"We have a teacher shortage in West Virginia," he said. "We also have a substitute teacher shortage that is making their jobs even more difficult."

Uncertainty about the future financial stability of the state-managed health insurance plan was a key factor in statewide teacher walkouts in 2018 and 2019. Lee said those issues still remain.

"Our educators deserve to know that there's not going to be huge [premium] increases in the out years," he told the Finance Board.

Meanwhile, Haught noted medical costs are running ahead of projections so far in the 2021-22 plan year.

He said medical claim expenses of $152.15 million through Oct. 31 are $10.57 million higher than projected, with a 9% increase in utilization of in-patient medical and surgical procedures.

Haught said the agency is hopeful the increase represents pent-up demand from insurees who put off procedures early in the pandemic.

"We've not dealt with the impact of a pandemic on the numbers in the health care industry," he said.

Likewise, he said costs for professional services are up 14% so far this plan year, which likely represents more people going back for medical appointments after putting them off last year.