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December 19, 2005 update:
AFSCME Disappointed with PEIA Increases for Active Employees
AFSCME West Virginia is pleased that the PEIA Finance Board has voted to reduce the proposed increase on retiree premiums. However, the PEIA Finance Board did not take a stronger position in urging the legislature to repeal the 80/20 premium split. Employee representatives on the board were the only votes in favor of the repeal.
During the recent PEIA public hearings, AFSCME members along with other state employee groups and teachers called for stoppage of the proposed increases and the repeal of the 80/20 statute. The PEIA Finance Board is bound by the language currently in statute and after further discussions with the Governor and members of the legislature this will be a major issue for us during the upcoming legislative session.
The total in the PEIA Reserve Fund is projected to be more than $184 million at the end of this fiscal year and to propose 22% increases for active employees is just wrong.
October 18, 2005
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PEIA: AFSCME Outraged Over
Proposed Increases Why give salary increases in a
special session if the State is going to take it back a few months
later?" "Option A - is not an option!" WE will draw
the line on increasing premiums by 22% while PEIA is experiencing a
$175 million dollar surplus |
On October 12th, the PEIA Finance Board decided to take to the public
hearings a plan for next year that increases employee premiums by 22% and
retiree premiums by 17%. The employee premium increases are directly related
to the so-called 80-20 legislation which requires employees to pay 20% of
the total premium.
To understand what a flawed public policy the 80-20 legislation is,
consider the fact that the Governor limited his recommended increase to PEIA
to a 1% increase ($5 million) solely for the purpose of reducing the premium
increase to employees. If PEIA had received $40 million as it has the last
several years the 80-20 legislation would have increased the proposed
premium increase even more than 22%.
Attached is a chart that outlines what employees are currently paying,
what they will pay beginning January 1, 2006 when a 7% increase goes into
effect, and they are likely to pay beginning July 1, 2006 if the 22% premium
increase is adopted. (One note about the chart: the premiums are on a
monthly basis. For employees who get paid on a ten month basis, you have to
multiply the amount by 12 and then divide by 10 to get the amount they have
deducted from their pay check).
The typical employee (one who is on a family plan making between $36,001
and $42,000) the increase between what they are paying now and what they
will pay in July is $50/month or $600 a year!
"It is imperative that we have as many AFSCME members and state employees
as possible attend these PEIA hearings".
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Comparison of
Monthly Premiums
current, effective 1/1/06 and proposed for
7/1/06
Single coverage
|
Salary Range
|
Current Premiums |
As of 1/1/06 |
proposed for 7/1/06 |
difference current and
proposed 7/1/06 |
|
20,001 - 30,000 |
$31 |
$33 |
$40 |
$9 |
|
30,001 - 36,000 |
$36 |
$39 |
$48 |
$12 |
|
36,001 - 42,000 |
$40 |
$44 |
$54 |
$14 |
|
42,001 -50,000 |
$53 |
$57 |
$70 |
$17 |
Employee and Child(ren)
Coverage
|
Salary Range
|
Current Premiums |
As of 1/1/06 |
proposed for 7/1/06 |
difference current and
proposed 7/1/06 |
|
20,001 - 30,000 |
$61 |
$65 |
$79 |
$18 |
|
30,001 - 36,000 |
$67 |
$73 |
$89 |
$22 |
|
36,001 - 42,000 |
$77 |
$84 |
$102 |
$25 |
|
42,001 -50,000 |
$105 |
$114 |
$139 |
$34 |
Family with Employee
Spouse Coverage
|
Salary Range
|
Current Premiums |
As of 1/1/06 |
proposed for 7/1/06 |
difference current and
proposed 7/1/06 |
|
20,001 - 30,000 |
$74 |
$80 |
$98 |
$24 |
|
30,001 - 36,000 |
$92 |
$100 |
$122 |
$30 |
|
36,001 - 42,000 |
$106 |
$115 |
$140 |
$34 |
|
42,001 -50,000 |
$139 |
$150 |
$183 |
$44 |
Family Coverage
|
Salary Range
|
Current Premiums |
As of 1/1/06 |
proposed for 7/1/06 |
difference current and
proposed 7/1/06 |
|
20,001 - 30,000 |
$116 |
$122 |
$149 |
$33 |
|
30,001 - 36,000 |
$130 |
$142 |
$173 |
$43 |
|
36,001 - 42,000 |
$150 |
$164 |
$200 |
$50 |
|
42,001 -50,000 |
$193 |
$209 |
$255 |
$62 |
NOTE: All premiums assume that the employee and
dependents are tobacco free.
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With PEIA premiums scheduled to increase
in January and again in July, we need to make sure we have a
presence at these public hearings and show our displeasure
with the 80-20 premium split. AFSCME and WV local's are
scheduling turnout events to coincide with each of the
public hearing locations.
|
Date |
City |
Location |
| Nov. 7 |
Charleston |
Charleston Civic Center |
| Nov. 8 |
Morgantown |
Ramada Inn |
| Nov. 10 |
Wheeling |
Ramada Plaza |
| Nov. 14 |
Martinsburg |
Holiday Inn |
| Nov. 15 |
Huntington |
Big Sandy Superstore Arena (Civic
Center) |
| Nov. 17 |
Beckley |
Tamarack |
All Hearings begin at 6:00 p.m. PEIA
Customer Service Representatives will be available from 4:00
p.m. to 6:00 p.m. before each of the scheduled public
hearings. If members have individual problems that need
personal attention, you should see the representative during
the 4 to 6 p.m. timeframe. Speaker registration begins at
5:30 p.m.
Finance Board Public Hearings
PEIA Finance Board will hold
public hearings to take comments on the
Plan Year 2007 Financial Plan
beginning November 7, 2005. .
Individuals interested in speaking at the public
hearings must indicate their desire to speak at
registration. Registration begins at 5:30 p.m.
All who attend will be asked to register.
Written comments will also be accepted. Submit
your written comments to:
WV PEIA Public Hearing Comments
State Capitol Complex, Building 5, Room 1001
1900 Kanawha Blvd. E
Charleston, WV 25305-0710
You may also submit comments via e-mail to:
peiahelp@wvadmin.gov
PEIA's Customer Service staff will be available to
answer questions from 4 to 6 p.m. at each hearing
location. If you have questions about PEIA PPB Plan
medical or prescription drug claims, this is your
chance to speak face-to-face with a customer service
representative.
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