MORGANTOWN — About 200 people turned out at WVU’s Erickson Alumni Center Friday June 8 to air their grievances and ideas to the Public Employees Insurance Agency Task Force Public Outreach Subcommittee.
Sue Kelly, a retiree, was among those who summed up the PEIA problem: Teachers and other public employees were promised good insurance in exchange for less pay. But escalating medical costs have steadily driven up employee costs — premiums, copays and out-of-pockets — while coverage has been cut back.
The problem came to a head in late February and early March when teachers and other public employees jammed the Capitol halls to demand raises and a permanent PEIA fix. The Legislature eventually passed a 5-percent raise package and the governor froze another planned round of price hikes and benefit cuts so the task force could take the time to craft solutions.
During the two-plus hour meeting, funding-fix suggestions boiled down to a handful:
- Raise the severance tax on oil and natural gas and devote the new money to PEIA. The current rate is 5 percent and one speaker, Thomas Bane, suggested setting it a 7.5 percent.
Several speakers focused on this measure as the primary way to raise money. Committee member Senate President Mitch Carmichael pointed out the severance revenues fluctuate widely and while the Senate supports a tiered hike, funding needs to come from an array of sources to remain stable. Other speakers agreed with him.
- Raise the corporation net income tax, which was reduced to draw new business and has failed so far to do so, to 9 percent.
- End tax credits to out-of-state corporations that locate here.
- Raise the tax on sugary drinks and raise “sin taxes” on alcohol and tobacco. Mary Ann Ferris, a retired teacher and leader of several retiree groups, said, “If I want to sin, I should be able to pay the price.” The current tax on a pack of cigarettes is $1.20 and speakers suggested raising it to $1.50 or even $2.20.
- Control prescription prices by passing a bill that died during the last legislative session to create a state-administered program to import lower-cost drugs from Canada. Bob Costelac suggested this and said, “I don’t think you can fix it in a year. I think it’s a road to recovery.”
- Contract with WVU Medicine to waive co-pays for care at WVU health facilities.
- Roll back retiree cost increases since their pensions don’t rise and don’t keep pace with the hikes.
- Require out-of-state oil and gas vehicles to register here so the tax money stays here.
Speakers also suggested some things not to do. Retired teacher Nellie Osbourne said don’t privatize PEIA. “It’s the one thing I don’t want to see happen.” A for-profit business model could only drive up costs and further reduce benefits.
Various speakers shared horror stories of dealing with PEIA bureaucracy, long waits and multiple calls to deal with simple problems, arbitrary coverage limits for essential services and medications.
Cassandra Sisler, a Preston County teacher, stirred the panel with her story. Her 8-year-old daughter has Asperger’s Syndrome, a high-functioning form of autism. She’s highly intelligent but have difficulty with social skills.
PEIA limits the daughter to 20 mental health visits, she said, and when she appealed for more the PEIA agent said 20 should be enough, and if they didn’t help, maybe the girl should be institutionalized.
That sparked the fury of panel chairman Joe White, who is executive director of the School Service Personnel Association. He said sometimes speakers’ accounts of problems get him so upset he has to stop the action and speak his mind before he can continue.
He apologized to Sisler on behalf of the whole state. “No parent should be told they should institutionalize their child.”
The subcommittee held 18 previous meetings around the state. This was the 19th. Two more are set: For today, in Martinsburg, and for Monday, in Charleston.
The full task force is required to submit a final report of findings and recommendations in time for the December legislative interim meetings, set for Dec. 9-11.
