A subcommittee looking into cost and revenue solutions for the Public Employees Insurance Agency could face a heavy lift, especially with $50 million in cost increases every year.
The Revenue and Cost Subcommittee of the main PEIA task force met for the first time Tuesday, reviewing options with the goal of cutting costs but not benefits. However, Joe Letnauchyn, who chairs the subcommittee, said not knowing what the plan will ultimately look like makes it harder to determine what the costs will be.
Delegate Mick Bates, D-Raleigh, said he is pleased the subcommittee met. Solving the revenue and cost problem is going to be the most challenging work of the task force, he predicted. He noted a 5 to 6 percent increase, which PEIA estimates it faces every year, equates to $50 million just to keep the plan frozen.
“You can’t fix PEIA in the short term without additional funding,” Bates said. “In the long term, we have to drive down costs but we can’t do that shifting the cost to employees. We need to get this problem solved or