FISCAL NOTE
Date Requested: January 16, 2026
Time Requested: 03:16 PM |
| Agency: |
Public Employees Insurance Agency (PEIA) |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2006 |
Introduced |
SB434 |
|
|---|
| CBD Subject: |
Insurance |
|---|
|
FUND(S):
PEIA Basic Insurance
Sources of Revenue:
Special Fund
Legislation creates:
Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to stabilize and sustain the Public Employees Insurance Agency (PEIA) by establishing a permanent reserve fund, protecting retirees, requiring transparency in rate-setting, and promoting fair cost-sharing and responsible management. This bill will cause cost increases for public employers participating in PEIA. By modifying the premium cost sharing ratio by 2 percent, State Fund employer premiums will increase $19 million. Requiring the State to pay the full capitation for Medicare retirees enrolled in a Medicare Advantage plan will increase the State’s cost by an additional $45 million. Capping retiree premiums for those retirees who receive annual pensions less than $40,000 will increase the State’s costs by an additional $9.5 million. Taken together, these three modifications will increase the State’s expenses by approximately $73.5 million per year.
PEIA will see administrative cost increases on mostly duplicative requirements as much of this bill’s requirements are currently fulfilled in WV Code Chapter 5, Article 16. Additionally, the State will see reduced General Revenue funds due to the required 2% appropriation to PEIA, however, PEIA is unable to provide an estimate on this value.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
73,500,000 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
73,500,000 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years.
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
Person submitting Fiscal Note: Jason Haught
Email Address: jason.a.haught@wv.gov