PEIA says better finances could lead to lower premiums

The Public Employees Insurance Agency says its finances remain stable and are actually performing better than expected, despite previous projections of a multimillion-dollar shortfall.

West Virginia PEIA says its finances performed well beyond projections for Fiscal Year 2026, which could potentially lead to a reduction in premiums instead of a previously projected premium increase

PEIA says better finances could lead to lower premiums

Robert Fields | WVOW News

CHARLESTON PEIA Director Brent Wolfingbarger told state lawmakers the agency is $67 million ahead of its fiscal year 2026 projections. He attributed the improved performance to lower-than-expected medical and prescription drug claims, along with higher-than-expected investment income.

Wolfingbarger made the comments before the Joint Standing Committee on Insurance and PEIA during legislative interim meetings. PEIA provides insurance for state employees, educators and some local government plans.

The agency projects a $345 million reserve at the end of the 2026 fiscal year.

Lawmakers had previously anticipated a three-percent premium increase for the next plan year. When he first took office in 2025, Governor Patrick Morrisey said a projected $62 million shortfall in PEIA was tied to costs that were artificially held down in past years, Morrisey claiming that shortfall was the result of an attempt by the previous administration to control growth in the PEIA budget.

Wolfingbarger, however, said the three-percent increase was based on those earlier projections. He said premiums could likely be lower because the plan is performing better than expected.

PHOTO | File - West Viriginia Public Employees Insurance Agency