Legislative leaders declined to elaborate Thursday on their criticism of the Public Employees Insurance Agency Finance Board's call for increased funding from the state to offset the pending $120 million in benefit cuts for PEIA insurees.
After imposing the "draconian" cuts involving significantly higher co-pays, deductibles, and out-of-pocket maximum costs for insurees, the nine-member board approved a resolution urging the Legislature to come up with funding to offset the cuts - a move that was harshly criticized by Senate President Bill Cole, R-Mercer, and House Speaker Tim Armstead, R-Kanawha.
Blaming the Finance Board for poor management in "willfully ignoring" the funding problems, the leaders described the motion as a "political football," but their prepared statements were vague about what the Finance Board should have done to avoid the funding shortfall - particularly since the board does not have authority to raise premiums for active employee coverage.
Under a state law requiring an 80-20 ratio for employers' and employees' PEIA premiums, the Finance Board can increase employee premiums only when the state budget increases funding for the employers' share of premiums.
In October, Gov. Earl Ray Tomblin notified the Finance Board that his proposed 2016-17 budget will not increase the current $422.4 million state contribution, potentially resulting in a fourth consecutive year without premium increases for PEIA.
During those years with no funding increases, the Finance Board voted to spend down a PEIA reserve fund to limit the impact on insuree benefits. However, the board last year had to cut benefits by more than $40 million, as the reserve fund was spent down to minimum required levels.
Cole has said he opposes any tax increases to fund PEIA, although on Wednesday longtime Republican legislator Frank Deem said he will sponsor legislation next session to increase the state's cigarette tax by $1 a pack, dedicating the estimated $112 million a year of new revenue to help offset the PEIA benefits cuts.
Asked during a joint press conference Thursday to elaborate on their criticism of the Finance Board's actions, Armstead responded, "Part of that criticism was about what led up to that vote and what should have been done about the problem."
Asked to further comment on what should have been done, Armstead said, "There are things we're discussing with the governor's office."
Earlier this week, Chris Stadelman, spokesman for Tomblin, said there have been discussions about options to ease the severe benefits cuts, but said no funding sources have been identified with the state already facing tough fiscal challenges in the 2016-17 budget year.
Cole did not comment on the issue during the press conference. Following a call to the president's office asking for a follow-up comment, Senate spokeswoman Jacque Bland provided a statement, which read, "As Senate President Cole has said previously, the Legislature stands committed to working with the governor, but the governor needs to offer a workable solution that doesn't raise taxes on families and is based on fiscal responsibility."
Reach Phil Kabler at philk@wvgazettemail.com, 304-348-1220, or follow @PhilKabler on Twitter.