PEIA Actuarial Study

PEIA is conducting an independent actuarial study. The actuarial study overview includes a list of all topics to be studied. Once each of the study topics described in sections A through D of the actuarial overview are available for your review, they will be linked below. Please read the overview below, as well as the individual topics as links are published, then submit your public comments on the actuarial study options.

Actuarial Study Materials

Actuarial Study Overview

A. Alternative Stability Solutions (link to be available soon)

B. Non-State Employer Participation (link to be available soon)

Collapsing Salary Levels

D. Other Cost-Saving Measures (link to be available soon)

Actuarial Study Overview

Per §5-16-31 of the WV Code, PEIA shall conduct an independent actuarial study of the:

1. Financial solvency of the plan, including, but not limited to,

a. a consideration of alternatives to bring long-term financial stability to the plan,

i. Funded healthcare savings accounts to promote consumer driven plans,

ii. Limited provider/pharmacy network plans,

iii. Wellness compliant plan offerings that provide cheaper benefits if compliant with plan requirements, (2026 or later)

iv. Increase admin fee $2.50 per year for 4 years,

v. Fixed ratio rule for benefits similar to the 80/20 rule for premiums,

vi. Dedicated funding source to offset premium increases from healthcare trend.

b. options regarding continued Non-State employee participation in the plan,

c. collapsing salary levels,

i. Consider various plans to reduce Index Code levels,

ii. All new employees pay single premium rate, not salary indexed,

iii. Expanded rates for family size exploration,

iv. Review Ee/child(ren) tier ded/oop. Why is it the same as family tier?

d. and any other cost-saving measures.

i. 80/20 min/max with PSR for employee share,

ii. Continued focus on WV services vs out of state, (how has 110% impacted utilization and how does it impact cost/benefits.)

2. PEIA shall seek input from

a. public employees,

b. retirees,

c. providers, and

d. other interested parties on solutions to evaluate in the study.

3. The actuarial study shall begin on or before July 1, 2023.

4. A report on the study shall be presented to the Joint Committee on Government and Finance on or before July 1, 2024.

Public Comments

After review of the individual actuarial study components, please submit comments to the Finance Board in writing to: 601 57th St., SE, Suite 2, Charleston, WV 25304-2345, or via e-mail to: PEIAComments@wv.gov.

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