And it begins.... Obamacare & PEIA....Enjoy

[CoolBreeze]

Thanks to Obamacare, The taxpayers will have to cover the increased costs of PEIA for others, not even counting themselves.


CHARLESTON, W.Va. -- Mandates in the new federal health-care legislation will increase costs for the Public Employees Insurance Agency by more than $30 million a year, an actuarial report released Thursday shows.

According to a report presented to the PEIA Finance Board on Thursday, additional benefits mandated under the federal health-care act will increase PEIA's expenses by $30.1 million in the 2011-12 budget year, and will continue to increase each year, to an estimated $38 million in 2014-15.

"The new health reform is going to impose $30 million [of costs] on this plan that you haven't budgeted for," PEIA director Ted Cheatham told the board, which will begin work on the 2011-12 PEIA plan in August.

Key cost factors, according to the actuarial study, include mental health parity -- which will require insurers to provide the same coverage for treating mental illnesses as they offer for physical illness or injury, including the same co-pays, deductibles and out-of-pocket maximums.

The study concluded that will cost PEIA an additional $11.2 million in 2011-12, and will increase to $13.7 million in 2014-15.

Another major expense will be to extend coverage for children of insurees to age 26, even if the children are no longer dependents.

That is projected to cost PEIA $7 million in new expenses in 2011-12, and increase to $8.6 million in 2014-15.

Because of that expense, Cheatham told the board he had decided that PEIA would not offer that extended coverage to children of insurees until it is mandated by law to do so, on July 1, 2011.

http://www.wvgazette.com/News/201005200830

PEIA was established under the Public Employees Insurance Act of 1971, to provide hospital, surgical, group major medical, prescription drug, group life, and accidental death and dismemberment insurance coverage to eligible employees; and to establish and promulgate rules for the administration of these plans. Benefits are made available to all active employees of the State of West Virginia and various related State agencies and local governments.