PEIA board should take hard look at premium hike
Times West Virginian
November 30, 2008 01:03 am
— When the economy worsens, families often have to make tough decisions.
A recent study by the Kaiser Family Foundation found that a third of Americans had trouble paying medical bills, and at least half either did not pay a delinquent bill or did not seek medical care because of the cost. The American Hospital Association also reports that admissions and elective procedures are down nationwide and there has been an increase in the number of patients unable to make co-pays or the full cost of treatment for the uninsured.
It is a disturbing trend, and one that may worsen as wages stay constant, insurance premiums increase and costs escalate. All Americans should have access to adequate medical care at an affordable cost.
But the term “affordable cost” is a subjective one. Families with medical insurance often have to pay hundreds of dollars per month in premiums on top of co-pays for doctor appointments and payments toward a deductible for treatments and procedures. An increase in premiums, even a small one, could make things even more difficult for families who are already scrimping and pinching to make ends meet between paychecks.
More than 200,000 West Virginians insured by the Public Employees Insurance Agency may face up to a 9 percent increase in premiums an possible cuts to benefits next fiscal year. For retired public employees, the premium hike could be as high as 11 percent, which is unfortunate for those already on fixed incomes with limited options when it comes to health-care coverage.
The whole situation is unfortunate. In 2006 and 2007, PEIA actually turned over surpluses to the state. But this year, claims have jumped by $35 million to $454.4 million, not surprising considering the fact that baby boomers are advancing in age, and with age come chronic medical conditions that require regular care.
It’s also unfortunate that public employees have in the past negotiated for smaller or no wage increases to keep premiums flat. To increase those premiums now, especially for the retired public employees, is a little difficult to take.
PEIA officials have pointed to the fact that private insurance premiums are increasing at a similar rate, and certainly that has to be taken into consideration. Insurance administered by the state must be fiscally responsible and conservative. If a rate increase is necessary to make the agency sound, then it has to be done.
But we encourage the PEIA board when it meets on Dec. 4 to consider looking at its administrative budget and its projected costs again prior to settling on a percentage premium increase for those covered, especially the retired employees. A smaller increase, if it can be achieved, may be a bit more palatable. The agency should also consider investing even more in preventative care and health education programs, like weight management and smoking cessation, so that claims will be maintained in future years.
Those who have dedicated their lives to public service, whether it be law enforcement, teaching or municipal work, deserve the best we can offer them.
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