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CHARLESTON, W.Va. — On Thursday, the PEIA Finance Board approved premium increases that will go into effect next year.
With the changes, public employees will see a 3% aggregate premium increase that will apply to both employees and employers. The other change that has garnered attention is a $200 monthly spousal surcharge increase.
The changes will go into effect on July 1, 2026.
The finance board approved the changes after hearing from public employees and retirees in a series of public meetings over the last month or so.
While dozens of residents spoke passionately throughout each hearing, the changes made this year didn’t cause as much outrage as last year. Increases of 14% for the state fund or 16% in plans for local governments were approved last year with retirees taking on a 12% premium increase. PEIA also had to impose increases in deductibles of 40% last year.
State worker representative Elaine Harris spoke before the board made its decision Thursday afternoon. She says those on the agency can’t afford the increases this year either.
“Public employees are struggling and they’re struggling in a big way. They’re making difficult decisions and retirees, even more so,” Harris said.
She says drug costs are out of control nationally, and that’s why the board has to make tough decisions like this.
“The problem that we all have and the elephant in the room is these drug costs. We’re seeing it as we negotiate contracts right now. We’re seeing hug increases in that area,” Harris said. “Hopefully Congress can get settled back in and they can look at some of these things.”
Education West Virginia co-president Dale Lee says those with more power than the board need to be willing to have the tough conversations.
“Part of the solution is knowing that we have to have some skin in the game. It’s not that we’re going to shift all the burden to the state or to the employer or anybody else. That’s not the way.”
“There are other areas that we need to look at. The drug companies, providers, the doctors and everything else. We all need to come back to the table and figure out what the best way to make this stable is over the years.”
Throughout the course of the public hearings and again on Thursday, Lee applauded the work the finance board has done and has said multiple times that their hands are mostly tied. Now that the plans have been approved, Lee is calling on lawmakers to make changes during the upcoming legislative session.
“Now my ask is that the legislature takes this serious and that the legislature look at things like making it a more fair system for the spousal surcharge,” Lee said. “I know of service personnel who are making in the first or second tier and paying the same amount for spousal surcharge as the superintendent making $180,000 a year. There’s something wrong with that.”