The Joint Committee on Insurance and PEIA heard the 2027 PEIA proposals.
Due to no increases from 2018 to 2022, in the last year, PEIA had to raise premiums at a high rate. To prevent this, they will continue to raise premiums slowly as health care costs rise. The spousal surcharge will increase, which was a point of contention with the public. PEIA said they’ve done everything to keep retiree costs down.
Employees under the state fund will see the following changes:
- A 3% aggregate premium increase for both employees and employers
- Spousal surcharge increase of $200 for a total of $550
- Plan D will be converted to a lower-value plan to offer options.
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- Plan D premiums will decrease 34%
- Plan D coinsurance will decrease from 80% to 75%
- Plan D deductibles will increase by 425%
- Plan D’s max out-of-pocket will increase by 55%
- Plan D will be given a one-time $500 employer-funded HSA or HRA from the employer.
- PEIA PPB plans will be renamed
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- Plan A = PPB Gold
- Plan C = PPB Gold high-deductible plan
- Plan B = PPB Silver
- Plan D = PPB WV Bronze high-deductible plan
Employees under the non-state fund will see the following changes:
- A 3% aggregate premium increase for both employees and employers
- Plan D will be converted to a lower-value plan to offer options.
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- Plan D premiums will decrease 34%
- Plan D coinsurance will decrease from 80% to 75%
- Plan D deductibles will increase by 425%
- Plan D’s max out-of-pocket will increase by 55%
- Employers need to have 50% participation.
- Plan C – increased premiums, deductibles, and max out of pocket of 5%
- Adjust non-state coverage tiers, deductibles, and MOOP and/or premium by 5%
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- The employee with children plan will decrease 5%
- Family tiers increase 5% to cover higher costs.
Those under the retiree fund will see the following changes.
- Non-Medicare premium increase 3%
- Medicare premium increase 3%
- Increase retiree Paygo from $10 million to $55 million.
- Designating $30 mil of FY25 investment funds as a retiree premium stabilization reserve
Additionally, a five-year plan was presented.
