Comment on WV PEIA still facing finance gap

By Phil Kabler Despite finishing up the 2017-18 budget year in relatively good financial health, PEIA will need up to $50 million in premium increases or benefits cuts, or some combination of both, to fund the 2018-19 health insurance plan, PEIA executive director Ted Cheatham said Thursday. "Our operational results are good, but we still need to build around our expected claim costs," he said after Thursday's PEIA Finance Board meeting. "It may come down a little bit," he said of the funding needs, based on the strong performance in the 2016-17 budget year, which ended June 30. PEIA is awaiting a letter from the governor's office specifying how much additional funding, if any, will be included in the proposed 2018-19 state budget to cover employer premiums. For 2016-17, a combination of lower-than-expected claims costs and strong investment earnings helped PEIA finish the year with a $35.7 million surplus out of $610 million of expenses for coverage for active employees. "The plan finished good.