After 30 years as a teacher, Cathy Proctor, 72, is still working at a nearby Malden Elementary school as a substitute teacher. She said the money is necessary to pay for groceries and growing medical bills after her husband became ill.
Plus, she’s going to pay more for her health insurance through the Public Employees Insurance Agency, which is offered to retired state employees.
In July, sweeping premium hikes went into effect for PEIA participants and some retirees as the program has struggled for years to stay afloat financially. The program provides health insurance coverage for teachers, state employees and more.
“It angers me,†said Proctor, who lives in the Kanawha County community of Rand. “I feel like this part of my life that I gave meant nothing to them.â€
She added, “If they are in trouble financially, there [are] other avenues they could go without tacking everything on us.â€
PEIA premium hikes are supposed to make up an estimated $113 million gap for the coming fiscal year because medical and prescription drug expenses have outpaced the program’s budget.
While Gov. Patrick Morrisey has floated the idea of a special session this month to “fix†PEIA, the governor and the GOP-supermajority Legislature can’t seem to reach a consensus.
PEIA premiums are increasing by 14% for state employees and by 16% for local government employees.
The agency will also raise premiums by 12% for the 42,000 retirees enrolled in PEIA. The premium increase went into effect for retirees not on Medicare in July; retirees using Medicare will see the increase Jan. 1.
“I know living on this fixed income — which we get no raises — it’s tough on retirees, especially if they increase the PEIA rates on us,†said Robin Beamer Dalton, of Princeton, Mercer County. Dalton taught school in Mercer County for 33 years before she retired in 2015. Because she has a Medicare plan in addition to PEIA, Dalton’s PEIA rates will increase early next year.
Dalton, a widow, said she’s trying to cut expenses in anticipation of the rate increase, but she hasn’t ruled out the possibility of finding a part-time job to help cover it.
“I don’t want to [work], because I feel like — well, I have worked over half my life,†she said. I just lost my husband four and a half months ago. I feel like I need to be home.â€
State senator: Allocate $10M to reverse retiree price hike
A spokesperson for the state Department of Administration said the average increase for retirees in the program depends on the individual’s years of service and type of coverage.
She explained that, for example, a Medicare policyholder with single coverage and 25 years of service will see a $10 increase, while a non-Medicare family plan will see a $76 increase.
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PEIA co-pays for certain medical services and prescription drugs increases, too.
When asked if PEIA leaders were considering reversing these changes for retirees, the department spokesperson said, “This continues to be an ongoing dialogue between the administration and PEIA. With the increasing costs of health care and recent shifts in Medicare Advantage Prescription Drug plans, these changes are necessary to ensure the long-term sustainability of the plan.â€
State lawmakers wrapped up their legislative session in April, exiting the Capitol without any action on PEIA while the price hikes loomed.
Sen. Mike Oliverio, R-Monongalia, said he’s working on gathering support for lawmakers to gather in October to allocate $10 million to reverse the PEIA premium hike for retirees. It’s not part of Morrisey’s alleged PEIA special session plan; the governor can call a special session or lawmakers can with the support of three-fifths in both the House and Senate.
“These are the folks who have cleaned our schools and state office buildings for decades. They’ve been our school bus drivers, they’ve been our school cooks,†Oliverio said, adding that these retirees are typically on fixed incomes.
He added, “A budget of $5 billion, a surplus of $280 million — surely we could find $10 million to hold off these premium increases on these folks who have served our state and our citizens for many, many years … The Legislature could come in, one day in October, suspend the rules and pass this.â€
Morrisey has proposed a plan to “fix†PEIA, MetroNews reported. It includes establishing a new plan for new employees; removing coverage eligibility for spouses who are offered health insurance through their own employer; and establishing a PEIA fraud unit. Retirees weren’t mentioned.
In July, Morrisey’s spokesperson told West Virginia Watch that the governor would “look to find solutions for all who receive coverage, including retirees.â€
Beginning Sunday, lawmakers gathered in ÂÒÂ×ÄÚÉä for September legislative interim meetings.
Dalton said officials should consider using the state’s surplus to give retired workers a raise.
“There are people that have been retired longer than me that we never get a wage increase unless it’s Social Security, which they take part of that for insurance so you really don’t get much,†she said.
For Proctor, the premium hike comes as she is helping her husband recover from a serious illness that requires a list of medications.
“Every time I turn around, utilities are going up … everything is just piling up,†she said, adding that she turns to her faith and prayer in these times.
“God is in control, he provides our needs,†she said.
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