See how you can help on Quick Ways to help tab.
Below is link PEIA Public hearing handout.
Also at there website home page if you click on the public hearing announcement to http://www.westvirginia.com/peia/page.cfm?parent=§ion=118&storyid=6222. Click on the blue text about the 2011 financilal plan and it will take you to presentation.
This contains a quick summary of some changes, listing of Public hearings and a few news articles, and some info from various union web site. WVAFT, WVEA, WVPWU and also link above to Public Hearing Presentation
Summary of some proposed changes:
1. They are projecting outrageous premium increases totaling about 60% over the 5 year period of plan years 2010 to 2014 (that includes this year’s increase),
2. Raising deductibles in Plan A as much as $100 for some, and 140% in plan B to $1200 and $2400,
3. Raising Family Out of Pocket Maximums by double, and even more than double (140% for plan B to $9,000).
4. All the while increasing copays on 49 drugs, by moving them to a different tier from $15 to $50 tier copay, which will affect 9% of the actives, and 33% of retirees. (How long until they add a few hundred more medications to this higher bracket and raise it to $100 copay?)
5. Plus they want to tie end of care directives to premiums, and dictate to whom give it.
(Require you to give to doctor, rather than you choosing say trusted relative and or lawyer. When you give it to doctor it’s really the whole practive, and might this not go to hospital, etc. with any general release of medical information? Plus would not it be scanned and stored electronically with your other records? When you go into the hosptal in emergency there’s no guarantee you will get your doctor or anyone in same practice!).
6. Also they’re talking about a WV only option for Care that penalizes those in border counties. Exposes them to double deductibles, double copays, and the difference between PEIA and hospital charge.
7. Plans to remove traditional coordination of benefits between PEIA and Medicare, thus instituting deductibles which will certainly grow, a major blow to retirees and that PEIA tried before without success due to the large outcry. Apparently the hope may be that plan members and seniors will fail to notice this now amid all the other threatened take aways. Sadly, every $100,000 in raises recently given PEIA upper management etc. (from PEIA administrative funds ?) would equal the amount taken away from 4000 seniors through this loss of coordination of benefits. The state’s chief executive’s $55,000 raise would cover this deductible (this take away benefits) for over 2,200 seniors who worked 30 or 40 + years at often extremely low wages, and don’t receive COLA’s on their small pensions. The goal is probably not just the amount reaped by adding this deductible, but to establish it now, so it can be not only increased repeatedly, but perhaps in case any future federal restrictions might protect against this take away of traditional coordination of benefits later, as it was promised in benefit books for years.
8. Lastly, a new provision penalizes those with a spouse on the family plan (for whom they already pay a greater premium–about triple), by adding a $50 surcharge per month ($1200 yearly penalty), if that spouse has coverage available through their employer, even if it is inadequate/more expensive. This isn’t equal pay for equal work. A benefit is available to one employee, should be the same for the employee who works next to him. Could this be the beginning of the demise of family coverage piece by piece not only for public plans but private plans?
PEIA has 100,000 members and 100,000 dependents, about 1 in every 9 people in the state.
You can stop this if we all try.
Go to peiawatch.wordpress.com for Quick ways to help.
The Public Hearings
Registration for the hearings will begin at 5:30 p.m., and the hearings will start at 6 p.m. If you wish to testify at the hearing, you must indicate that at registration.
The hearings will be held as follows:
Monday, Nov. 9, 2009
Civic Center, Little Theater
200 Civic Center Drive
Charleston, W.Va.
Tuesday, Nov. 10, 2009
Tamarack Theatre
One Tamarack Park
Beckley, W.Va.
Monday, Nov. 16, 2009
Holiday Inn
301 Fox Croft Ave.
Martinsburg, W.Va.
Tuesday, Nov. 17, 2009
Ramada Inn
20 Scott Ave.
Morgantown, W.Va.
Wednesday, Nov. 18, 2009
West Virginia Northern Community College
1704 Market Street
Wheeling, W.Va.
Thursday, Nov. 19, 2009
Marshall University Medical School, Harless Auditorium
1600 Medical Center Drive
Huntington, W.Va.
If you can’t attend a hearing in person, you can submit comments in writing to:
PEIA Finance Board
601 57th St., SE
Charleston, WV 25304
Or via e-mail to: peia.help@wv.gov
Customer Service
PEIA will provide customer service in each location from 4-6 p.m. If you have questions about medical, prescription or life insurance benefits, come early and get answers from the PEIA staff.
http://www.wvgazette.com/News/200911090805?page=2&build=cache
From Public Workers Union http://www.uelocal170.org/
“PEIA Finance Board Picks Workers Pockets AgainPublic workers have taken up the slack for statewide staffing vacancies throughout the Manchin Administration, suffering with years of frozen pay and increased expenses imposed by the PEIA Finance Board, the so called employee benefit provider. By increasing the employee deductibles, increasing the employee’s share of premiums and by cutting employee benefits denying access to out of state health care, the PEIA Finance Board has planned to impose draconian cost saving measures at the expense of every state employee’s physical and financial health, endangering the welfare of every public worker and our families.
As the WV Public Workers Union has previously reported, the 2009 state employee budget surplus bonus proposal was pulled off the table at the request of Governor Manchin when the WV House of Delegates attempted to make the bonus as fair as possible for public workers and retirees. According to State Tax Department Officials, West Virginia realized a 2009 fiscal year state budget surplus of $168 million dollars because of the statewide staff shortages. Even though several times Governor Manchin promised that any 2009 budget surplus would be shared with public employees who earned it, the bonus was killed by the Governor because it would have applied fairly to public workers and retirees.
Frozen pay and increased costs for health care services is insulting enough. Cutting the benefits of public workers access to health care significantly reduces the quality of life for public workers and their families all across this state. Because of the statewide pay freeze, increased health costs imposed by the PEIA Finance Board is a pay cut for all public workers and public worker retirees. The same Finance Board Members have accepted thousands of dollars in pay raises while forcing a pay freeze on state workers.
Take Action – Attend one of the following PEIA Finance Board Public Hearings and voice your objections to this planned increase in premiums, increased deductibles and benefit cuts by denying access to health care beyond the state line. The details of the PEIA 2011 Plan proposals are now available on the agency website. www.wvpeia.com
Compare your pay raise to some of the PEIA Executive pay raises*
PEIA Finance Board members and the PEIA executives pay is not frozen.
PEIA Finance Board member Joe Smith, representing retired state employees, is employed as a Governor’s Office employee. Joe Smith is also a paid member (employee) of the Racing Commission. In addition to collecting retirement, and two sets of state paychecks, Joe Smith is also the chief enforcer of the Governor’s questionable pay freeze, while at the same time he is cutting benefits Joe Smith has been accepting thousands of dollars in pay raises at the Governor’s Office.
PEIA Finance Board member Robert Ferguson, Secretary of the Department of Administration, has received $5,000 pay raises for each of the past two years. 2006 = $77,291; 2007 = $82,291; 2008 = $87,291
PEIA Director, Ted Cheatham, was given a $5,000 raise. 2007 = $134,348; 2008 = $140,076
PEIA Medical Director, Shelda Martin, got a $37,000 pay increase. 2007 = $133,013; 2008 = $171,873
PEIA Deputy Director, Gloria Long, was given a $17,000 pay increase. 2007 = $81,308; 2008 = $98,293
PEIA Finance Section, Clifford Myers, was given a $10,000 pay increase. 2007 = $52,808; 2008 = $62,909
PEIA Supervisor, Sherra Barker, was given two $8,000 increases. 2006 = $36,115; 2007 = $44,332; 2008 = $52,638
*All salary figures are from the WV State Auditors website from the WV State Employees Total Compensation searchable data bases. Joe Smith’s compensation was obtained by FOIA request and other public records.
This PEIA 2011 plan will impose pay cuts on public employees while rewarding their own executives with pay raises.
Say NO to the PEIA 2011 plan pay cuts for public workers.
PEIA Public Hearings schedule – sign in to speak at 5:30, the hearings begin at 6:00 pm
Monday, November 9
Civic Center Little Theater
200 Civic Center Drive
Charleston, W.Va
Tuesday, November 10
Tamarack Theater
One Tamarack Park
Beckley, W.Va
Monday, November 16
Holiday Inn
301 Fox Croft Ave.
Martinsburg, W.Va
Tuesday, November 17
Ramada Inn
20 Scott Ave.
Morgantown, W.Va
Wednesday, November 18
West Virginia Northern Community College
1704 Market Street
Wheeling, W.Va
Thursday, November 19
Marshall University Medical School
Harless Auditorium
1600 Medical Center Drive
Huntington, W.Va
All union members are encouraged to attend at least one of the PEIA Finance Board Public Hearings and speak out in protest to this pay cut.
Things to watch out for that indicate the PEIA Finance Board doesn’t really care what people think:
Does the PEIA Finance Board have a quorum of Board Members in attendance at the public hearing?
Is the public hearing being recorded and are notes being taken by someone from the agency so that there is a record of the comments?
Does the moderator interrupt and offer his opinion contradicting the speaker when they should be listening to the concerns of the public employees?
Petition for a Pay Raise.
You can help public workers get a well deserved pay raise. Public workers and retirees in West Virginia deserve a pay raise, not a pay cut. Every study the state has done shows there is a problem recruiting and retaining employees to serve our government. You can help solve the state worker staff shortage all across West Virginia by helping to demand that the Legislature enact a cost of living increase for all public workers and public worker retirees. Sign our petition today calling for a cost of living pay raise of at least $1,000 for public workers and retirees. Say yes to a raise for our public workers”
http://www.wvea.org/news/articles/PEIA_discussing_FY2011_plan,44.aspx
Charleston Gazette
“PEIA discussing FY2011 plan
September 24, 2009
PEIA recipients face premium increases, benefit cuts
By Phil Kabler
Staff writer
CHARLESTON, W.Va. — Public Employee Insurance Agency recipients could see 4 percent premium increases, and benefit cuts totaling $23 million next year, under a plan given preliminary approval Thursday by the PEIA Finance Board.
As an alternative, board members tentatively approved offering a lower-priced plan for West Virginia-only coverage, which would pay for out-of-state health care only for emergencies or specialized treatment not offered in state.
The proposed benefit cuts come just two months after the PEIA board voted to eliminate retiree health coverage for all public school and state employees hired after July 1, 2010 — an action intended to freeze a $7 billion unfunded liability in future retiree health costs.
Thursday’s plan, which will be up for final approval in December, drew objections from employee representatives and retirees.
“For us to send out any increase in premiums, or any reduction in benefits, after what we have done is appalling to me,” said public education representative Josh Sword, referring to the board’s vote in July.
PEIA Executive Director Ted Cheatham noted that PEIA was formally served Thursday with a lawsuit filed by the West Virginia Education Association challenging the elimination of retiree health benefits for new hires.
“We have taken it on the chin,” said Sword, a lobbyist with the West Virginia Federation of Teachers. “We took it on the chin last month when a $500 bonus was promised to public employees, and then snatched away from them. … Morale is at an all-time low.”
Retired state employee Sandy Latimer told the board that many retirees can’t afford any increase in their health care costs.
“I wonder how many more nails can be pounded into the retirees’ coffin?” Latimer asked the board.
“Every year, PEIA takes away from retirees’ income, but state government does not add to it,” he said. “Retirees are having a tough time as it is.”
Administration Secretary Robert Ferguson, who serves as the board’s chairman, said he understands that employees and retirees are struggling with health care costs, but said the board is mandated to come up with a financially sound plan.
“The numbers are the numbers,” he said. “We have a fiduciary obligation, and a moral obligation, that whatever plan we adopt, we’ve got to be able to pay for.”
In addition to 4 percent premium increases, the proposal calls for increasing annual deductibles for active employees and retirees by either $25 or $50 a year.
It also would double the annual out-of-pocket maximum for family plans, based on employees’ salaries.
The proposal does offer one benefit increase: increasing the lifetime maximum benefit for each insuree from $1 million to $1.5 million.
Cheatham said there about 20 retirees who have reached the current lifetime maximum, but continue to receive coverage under the Medicare Advantage plan — a federally funded program that could end in the near future.
“If they come back into PEIA, they won’t have any coverage,” he said.
The proposal also calls for creation of a “high performance” prescription drug formulary that covers only a very limited number of brand-name drugs, cutting PEIA’s costs by about $8 million a year.
In order to cut premium costs, employees would have the option of switching to a new West Virginia-only plan. Under that coverage, PEIA would cover expenses for out-of-state care only for emergencies, or for patients referred for specialty care, but only at the Cleveland Clinic or Duke University.
With costs for out-of-state claims running about five times higher than in-state claims, that plan would save PEIA an additional $9.5 million a year, Cheatham said.
However, he conceded the proposal could be controversial in border counties, particularly in the Eastern Panhandle, where there are no in-state providers of services such as advanced cardiac care.
“They’re not going to perceive it as, “You’re saving me money,” Cheatham said. “They’re going to perceive it as, “You’re punishing me for living in the Eastern Panhandle.”
The Finance Board will conduct a series of public hearings around the state on the proposed 2010-11 plan, with a final vote on the plan slated for its December meeting. “
PEIA Finance Board unveils FY 2011 plan
WVEA opposed to a number of proposals
Thursday, October 22, WVEA President Dale Lee attended the PEIA Finance Board meeting. During the public comment segment of the meeting, President Lee stated that WVEA is very disappointed and concerned about stripping retirement subsidy benefits of new employees while the board continues to increase premiums and deductibles.
WVEA opposes increasing employee’s premiums without increasing employee’s salaries. WVEA understands the rising cost of health care, however, school employees have not received a pay increase in more than two years and had a $500 bonus snatched from them in September.
WVEA is committed to ensure that PEIA provides an adequate benefit to employees and those benefits be provided at the lowest possible cost to members. It is unheard of today that the State of WV expects to get by with only a 4% increase in health insurance costs and dump the balance on the backs of hard-working school employees and state employees. Furthermore, WVEA has real problems with proposed concepts that single-out classes of employees (i.e. obese) and charging those individuals higher premiums.
In addition, WVEA is further concerned that the proposed plan includes at least an 11% employee premium increase in the 2012 plan; 12% in 2013; and 11% in 2014. The increasing cost of health care is a problem that must be addressed; the answer must not be simply to place the burden on the backs of employees.
Finally, the Finance Board is considering, at the Governor’s request, imposing a a possible premium reduction for those who live healthy lifestyles. WVEA has real problems with the proposal:
1 What is the definition of a healthy lifestyle? What is the procedure for gathering that information on any insured?
2 PEIA should be promoting good health practices if they truly encourage healthy lifestyles. They should expand their assistance efforts
3 In may parts of our state employees do not have available to them the kinds of programs that assist employees with weight management or lifestyle programs. In fact, many counties in WV do not even have a YMCA. How will PEIA ensure equitable opportunities for healthy lifestyles in those areas
During the meeting, the board voted on a proposed plan that will be taken to public hearings in November. The plan proposes premium and benefit plan changes for next fiscal year, which begins in July 2010.
The proposed changes include:
* A 4% increase in Governor Manchin’s funding of PEIA
* A 4% average increase in premiums for active employees and retirees -
(However, certain income tier increases will be higher and others lower).
Example of premium increases for employees earning between $36,001 and $42,000
| Employee only | Employee & child | Family | Employee spouse | |
| Plan A | From $50 to $54 | From $94 to $102 | From $187 to $202 | From $130 to $140 |
| Plan B | From $26 to $27 | From $42 to $44 | From $130 to $135 | From $82 to $85 |
| Plan C (new) | $52 | $98 | $194 | $135 |
* A 5% benefit reduction in the form of increased deductibles and out of pocket maximums.
* Creation of a new in-state only plan, titled Plan C, requires the use of West Virginia health care providers for all health services. In addition, agreements would exist with Duke University Hospital and the Cleveland Clinic to provide some specialty care services. Details of this new plan are not yet complete.
Proposed changes to PEIA PPB Plan A -
Increase annual deductible by either $25 or $50.
Example of a $25 annual deductable increase for employees earning $36,001 and $42,000.
| Employee only | Employee & child | Family | Employee spouse | |
| Plan A | From $225 to $250 | From $450 to $500 | From $450 to $500 | From $450 to $500 |
| Plan C | $250 | $500 | $500 | $500 |
Example of a $50 annual deductable increase for employees earning $36,001 and $42,000.
| Employee only | Employee & child | Family | Employee spouse | |
| Plan A | From $225 to $275 | From $450 to $525 | From $450 to $525 | From $450 to $525 |
| Plan C | $275 | $525 | $525 | $525 |
Increase the family Maximum Out Of Pocket (MOOP) to double that of the individual maximum.
For members earning between $36,001 and $42,000.
| Employee only | Employee & child(ren) | Family | Employee spouse | |
| Plan A | Remains $1500 | From $1,500 to $3,000 | From $1,500 to $3,000 | From $1,500 to $3,000 |
| Plan C | $1500 | $3000 | $3000 | $3000 |
Increase lifetime maximum from $1 million to $1.5 million.
Proposed changes to PEIA PPB Plan B
Dramatic Increases in Deductibles
Increase in Deductable for employees earning between $36,001 to $42,000
| Employee only | Employee & child | Family | Employee spouse | |
| Plan B | From $500 to $1100 | From $1100 to $2200 | From $1100 to 2200 | From $1100 to $2200 |
Increase the family Maximum Out Of Pocket (MOOP) for the Employee Only plan and double that of the individual maximum for Employee with Child (ren), Family and Family with Employee Spouse plans.
MOOP for Plan B members earning between $36,001 and $42,000 increases
| Employee only | Employee & child | Family | Employee spouse | |
| Plan B | From $2000 to $4500 | From $4000 to $9000 | From $4000 to $9000 | From $4000 to $9000 |
Plan B participants would also be offered a Health Savings Account (HSA) under the proposed plan. Health Savings accounts involve pre-tax contributions placed into specified accounts to pay for qualifying medical distributions. Earnings from HSAs are tax-free. The participant owns and controls the account. Contributions made in one year can be used in subsequent years to pay eligible medical expenses
Proposed Changes for all PEIA participants
Pharmacy – PEIA plans to adopt a High Performance Formulary. This maximizes some brand rebates and moves some drugs to higher copay tiers – which will result in 9.4% of participants seeing a tier increase, therefore resulting in higher costs while 1.5% of participants will see a tier decrease, resulting in savings. PEIA believes that increased utilization of generic drugs would lower costs.
Non-employee spouses covered by PEIA - If a PEIA member’s spouse has the option of enrolling in health insurance coverage with his or her employer, and the spouse elects or elected to forgo that coverage for enrollment in PEIA, there would be a $50 per month premium increase.
Living Will – Under this proposed plan change, any PEIA member providing an affidavit to PEIA verifying he or she executed a living will receives a premium reduction similar to the tobacco-free premium reduction. There is some confusion surrounding the logistics of the reduction. Originally, the proposed concept allows an employee to receive either a tobacco free reduction or a living will reduction, but not both. Dale Lee, President of WVEA, suggested in if this option is selected, PEIA should provide three tiers- one for tobacco free, one for living will and a third for both.
Proposed Changes for Retirees
Retirees would see an average of 4% increases in premiums.
Retiree Assistance Program- which provides premium reductions to certain retirees meeting income guidelines is increased at all levels and the Maximum Out Of Pocket (MOOP) is $300 opposed to $750 for qualifying retirees.
Click here for the dates and locations of the public hearings. “
http://wvea.org/news/default.aspx
http://wveapresblog.blogspot.com/
Here We Go Again
October 27, 2009
The air is getting that familiar chill, the leaves have turned and the holidays are just around the corner. This means the annual PEIA Public Hearings are upon us. This past Thursday (October 22) the Finance Board met to adopt the plan to present at the public hearings. Once again, we were the only organization to speak at the Finance Board meeting. As I voiced my concerns about the plan, I assured the Finance Board we would be a loud voice at the Public Hearings.
As we all know, the cost of health care continues to skyrocket no matter where you are employed, but to expect the employees to bear the blunt of the cost when there have been no pay increases in two years is just plain wrong. The Governor likes to say we need to look at what is happening in the private sector and I can assure you, no business in the private sector is getting by with a 4% increase in health care.
Adding a West Virginia only plan is also punitive to those school employees in border counties, especially the Eastern Panhandle. Their choices in health care are limited, and to expect a higher premium is wrong. Last year, the Finance Board proposed a 70/30 plan which would have paid out of state providers only 70% of the cost leaving the employee paying 30%. Through our efforts, we were able to defeat that proposal. This is just another version of the same song. We must speak loudly.
Finally, the proposal to examine a “fat tax” is highly discriminatory and just plain wrong. I voiced my concern at the Finance Board meeting and again to the Governor. The Governor has backed off this saying it is “off the table.” However, unless the Finance Board meets again to take it off the Public Hearing agenda, we must be prepared to speak out. I understand it is better to identify health problems such as diabetes, high blood pressure, etc. early, but to take this to the extreme suggested is a highly punitive measure. We should be encouraging wellness programs, not to penalize a few. We should come to the hearings prepared to offer recommendations on promoting healthy life styles.
As I continue to say, we must stand strong and united. This is just another attack. Together, we can be successful.
Date: Mon, 26 Oct 2009 19:40:20 +0000
From: info@aftwv.org
To: mariwv@hotmail.com
Subject: PEIA Alert
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The Public Employees Insurance Agency Finance Board has once again proposed to pick state workers pockets. After years of a questionable pay freeze imposed by the Governor’s contract employee on the PEIA Finance Board, who at the same time pretends to represent retired public workers while holding three state jobs and has accepted numerous pay increases and offers tens of thousands of dollars in raises for Governor’s office staff, who now votes to further cut public workers pay. The Governor’s handpicked PEIA Finance Board has continued to take back the pay earned by public workers through benefit cuts, increased co-pays and increase deductibles while members of the PEIA Finance Board enforce a pay freeze while some of these same board members have been collecting hefty pay increases. With the stroke of a pen the PEIA Finance Board has proposed to cut the pay of public workers and offers nothing of value in return for their so called “cost saving” proposal. A tough time attracting people to work for West Virginia just got much more difficult because the low pay just got lower.
[...] West Virginia may raise state employees’ health insurance premiums by 60 percent over the next 5 years By writejesse Details here. [...]