CHARLESTON, W.Va. -- Gov. Joe Manchin continued Wednesday to try to distance himself from a proposal to charge overweight public school and state employees higher Public Employees Insurance Agency premiums.

"We're trying to help people to live a healthier lifestyle with perks and incentives  -- not by using derogatory terms," a visibly angry Manchin said Wednesday, when asked about the "fat tax" proposal.

"We need to show compassion for people," he said.

Last Thursday, the PEIA Finance Board voted to make the proposal to charge higher premiums to overweight employees one of three topics of discussion for possible PEIA plan changes. Those topics will be discussed during six public hearings around the state next month.

At the meeting, PEIA Executive Director Ted Cheatham said Manchin had raised the issue, citing a recent decision by North Carolina's public employee health plan to charge higher premiums for overweight employees, beginning in 2011.

Alabama's public employee health plan had previously become the first state to approve higher premiums for overweight employees, also beginning in 2011.

"He asked, 'Why aren't we doing something like that?'" Cheatham said at the meeting.

West Virginia Education Association President Dale Lee attended the board meeting, and verified Wednesday that Cheatham had said Manchin instructed him to bring the North Carolina plan up for discussion at the Finance Board.

"That's exactly what he said," Lee said. He noted that he objected to the proposal at the meeting, saying it would be divisive and counterproductive.

"Let us focus on wellness programs. Let us focus on the opportunity to catch problems early -- not to have a punitive measure," he said.

"We're trying to help people to live a healthier lifestyle with perks and incentives  -- not by using derogatory terms," a visibly angry Manchin said Wednesday, when asked about the "fat tax" proposal.

"We need to show compassion for people," he said.

Last Thursday, the PEIA Finance Board voted to make the proposal to charge higher premiums to overweight employees one of three topics of discussion for possible PEIA plan changes. Those topics will be discussed during six public hearings around the state next month.

At the meeting, PEIA Executive Director Ted Cheatham said Manchin had raised the issue, citing a recent decision by North Carolina's public employee health plan to charge higher premiums for overweight employees, beginning in 2011.

Alabama's public employee health plan had previously become the first state to approve higher premiums for overweight employees, also beginning in 2011.

"He asked, 'Why aren't we doing something like that?'" Cheatham said at the meeting.

West Virginia Education Association President Dale Lee attended the board meeting, and verified Wednesday that Cheatham had said Manchin instructed him to bring the North Carolina plan up for discussion at the Finance Board.

"That's exactly what he said," Lee said. He noted that he objected to the proposal at the meeting, saying it would be divisive and counterproductive.

"Let us focus on wellness programs. Let us focus on the opportunity to catch problems early -- not to have a punitive measure," he said.

As for Manchin's claims that the "fat tax" was not his proposal, Lee said, "That is certainly different from what you and I heard Thursday."

Since then, the proposal has drawn widespread criticism from representatives of the state teachers' unions, and from public employee groups.

On Monday, Manchin told a meeting that included some of the union representatives that the proposal was off the table.

Nonetheless, the Finance Board is not planning to meet again before public hearings begin Nov. 9 in Charleston to remove the "fat tax" proposal as a talking point.

As outlined by Cheatham, West Virginia's program would be enacted over two years. In the first year, PEIA insurees would be required to undergo a brief examination, measuring their blood pressure, blood glucose and their body fat.

"The goal is to make sure everyone in West Virginia we insure knows their numbers," Cheatham said.

In the second and subsequent years, insurees who either refused to submit to the examination, or who were found to be overweight would be placed in the higher premium category.

Once the public hearings are completed, the Finance Board will meet Dec. 3 to give final approval to PEIA's 2010-11coverage plan.

In addition to the "fat tax," other plan changes that will be up for public comment will be a proposed premium discount for non-tobacco users who sign living wills with end-of-life directives, and a $50-a-month penalty for insurees who have their spouses covered by PEIA, when the spouse's employer offers health insurance.

Reach Phil Kabler at ph...@wvgazette.com or 304-348-1220.