The Times West Virginian

Local News

November 13, 2008

Proposed PEIA changes spark anger

From state’s education officials

By Katie Wilson

FAIRMONT — Education officials around the state are angered by proposed changes to the Public Employees Insurance Agency plan.

PEIA officials recently rolled out proposed changes to benefits offered.

According to the American Federation of Teachers - West Virginia, the changes include the following:

• An increase in premiums, 9 percent for employees and 11 percent for retirees.

• A $10 increase in the cost of second-tier prescription drugs. Also, several common prescriptions, such as popular heartburn drugs Nexium, Prevacid and Aciphex and the allergy medications Clarinex and Xyzal will no longer be covered.

• An 50 percent increase in the “out-of-pocket” maximum payment for family coverage.

• An increase in “in-network” office copayments for both employees and retirees.

• Copayments for out-of-state network providers will increase from 20 percent to 30 percent.

Mike Adkins, deputy director of operations for PEIA, said the changes are not yet set in stone.

The PEIA finance board will host six hearings at locations throughout the state through next week.

The local hearing will be held today at the Ramada Inn in Morgantown. A customer-service session will be held from 4-6 p.m. with registration for the public hearing beginning at 5:30 p.m. The hearing will run from 6-8 p.m.

Adkins said the hearings are mandated by State Code and give the general public, as well as employees, an opportunity to voice their opinion on the changes before the board makes a final decision. Adkins said written comments are accepted as well and will be forwarded to the finance board for review.

He said a meeting of the PEIA finance board is scheduled for sometime in December to make a decision on the plan changes.

“What’s driving this is the change in the cost of health care,” Adkins said.

“This plan is going to be devastating to active employees and retirees,” said Bob Morgenstern, director of organizing for AFT-WV. “Not only are they raising premiums, they’re reducing benefits.”

Dale Lee, president of the West Virginia Education Association, is very unhappy with the entire plan.

“They’re making increases in out-of-pocket costs, copays, the drug formulary, eliminating drugs from the plan so people will have to pay the full amount, all of that at a time when the state has a surplus,” Lee said. “They’re paying for this on the backs of the employees, and that’s just wrong.”

Both Morgenstern and Lee said they were particularly displeased with the changes to retiree benefits.

“Many of (the retirees) have given their lives to the state and the children of West Virginia. To increase cost on them and yet we haven’t provided them an increase in provider benefits is just an absolute sin,” he said.

Morgenstern said the changes to PEIA will penalize those who use health benefits.

Representatives from WVEA and AFT-WV will be on hand for today’s hearing, including a contingent of local members.

Stacey Strawderman, president of Marion County’s AFT branch, said she and other members of the group will be at the hearing. She said the timing of the move, with a sluggish economy and fears of a deep recession, is just bad.

“We really need people there to protest this,” she said. “It’s just a horrible time for it.”

Even higher education is upset.

Sue Kelley, a member of the Fairmont State University Faculty Senate, said that group unanimously passed a resolution condemning the changes. The Pierpont Community & Technical College Faculty Assembly will take up the issue today, Kelley said, and the resolution has been forwarded to the campus’ staff councils.

Kelley said she hopes all groups adopt the resolution so the campus can speak with a unified voice.

“PEIA needs to know we’re a unified group that objects to unfairness and considers the changes unnecessary and particularly difficult in these times,” Kelley said.

Members of FSU’s faculty will also be attending the hearing today.

E-mail Katie Wilson at kwilson@timeswv.com.

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