A mix of clouds and sun during the morning will give way to cloudy skies this afternoon. A stray shower or thunderstorm is possible. High 92F. Winds SW at 5 to 10 mph..
Tonight
Scattered thunderstorms, especially during the evening. Storms may contain strong gusty winds. Low 73F. Winds SSW at 5 to 10 mph. Chance of rain 70%.
Brian Cunningham, who led the West Virginia Public Employees Insurance Agency for about a year and a half, has left the position, a spokesperson for PEIA confirmed Wednesday.
PEIA Director Brian Cunningham speaks to the Joint Standing Committee on Finance during West Virginia legislative interims on Oct. 7, 2024.
WILL PRICE | WV Legislative Photography
Cunningham resigned effective the end of day on Jan. 10, according to his letter — dated Dec. 23 — to the state Department of Administration Cabinet Secretary John McHugh.
Gov. Patrick Morrisey took office Jan. 13. Morrisey’s office did not respond to a request for comment on Wednesday.
“It has been an honor and a pleasure to serve Governor Justice and the public employees of the State of West Virginia,†Cunningham wrote in the letter. “I am most grateful to the teams at PEIA and the Department of Administration for their support. Moreover, I am proud of the progress we’ve made together.
“I stand ready to support the transition as you and Governor Justice deem appropriate,†he said.
Former Gov. Jim Justice appointed Cunningham as PEIA director in July 2023. Prior to being director, Cunningham was head of West Virginia PATH, a program that guides low-income people to health programs.
Jason Haught, the agency’s chief financial officer, is PEIA’s acting director, a spokeswoman said.
PEIA payments part of projected $400M budget shortfall
Morrisey last week named one-time state payments to PEIA, which has had “significant budget challenges,†as well as correctional facilities and higher education, as one of the factors contributing to a projected $400 million state budget deficit. In October, state lawmakers approved $87 million in one-time funding for the PEIA reserve fund to help the agency avoid rake hikes beginning in January.
“I mention some of these issues not to express a problem or a concern or say what we’re doing or not doing, just to point out some of the structural problems that we have with it,†Morrisey said of the state budget deficit. “There will need to be some important choices and prioritization to make sure that we’re putting the needs of the citizen first.â€
The PEIA finance board in December signed off on roughly $113 million in premium and cost increases for employees during the 2026 fiscal year, which begins in July.
Cunningham has said rising health care costs, particularly inflation for prescription GLP-1 drugs, which treat obesity and diabetes, are a major driver of the rate increases. Those drugs accounted for $53 million in net costs for the agency in 2023, he said. Last year, the agency suspended a pilot program that covered the cost of the drugs to treat obesity.
In addition, Senate Bill 268, passed during the 2022 legislative session, resulted in a $70 million increase in pay to health care providers and increased premium rates to return to an 80/20 employer/employee premium split.
Premiums for state employees will increase by 14% while local government employees will see a 16% increase. The agency will also raise premiums by 12% for retirees.
Both state and county employees using PEIA will see an increase of 40% in their out-of-pocket maximum as well as increases in co-pays. A monthly spousal surcharge for state employees will more than double, from $147 to $350. The state and local fund employer administration fee will increase by $2.50
Union leaders and PEIA workers have called on state lawmakers to find a permanent funding source to prevent PEIA increases going forward.
