WEST virginia Legislature
2016 regular session
Introduced
House Bill 4551
By Delegates McCuskey, Westfall
and Frich
By request of the
Public Employees Insurance Agency
[Introduced February 16, 2016; referred to Banking and Insurance then Finance.]
A BILL to amend and reenact §5-16-22 of the Code of West Virginia, 1931, as amended, relating to the Public Employees Insurance Agency; clarifying that the plans established and administered by the Public Employees Insurance Agency are exempt from regulation by the Insurance Commissioner, unless specifically stated otherwise; and providing that the Public Employees Insurance Agency is not an “insurer” or in the “business of insurance” for purposes of the Insurance Commissioner.
Be it enacted by the Legislature of West Virginia:
That §5-16-22 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:
ARTICLE 16. WEST VIRGINIA PUBLIC EMPLOYEES INSURANCE ACT.
§5-16-22. Permissive participation; exemptions.
(a) The provisions of this article are not mandatory upon
any employee or employer who is not an employee of or is not the State of West
Virginia, its boards, agencies, commissions, departments, institutions or
spending units or a county board of education, and nothing contained in this
article may be construed so as to compel compels any employee or
employer to enroll in or subscribe to any insurance plan authorized by the
provisions of this article.
(b) Those employees enrolled in the insurance program
authorized under the provisions of article two-b, chapter twenty-one-a of this
code may are not be required to enroll in or subscribe to
an insurance plan or plans authorized by the provisions of this article, and
the employees of any department which has an existing insurance program for its
employees to which the government of the United States contributes any part or
all of the premium or cost of the premium may be exempted from the provisions
of this article. Any employee or employer exempted under the provisions of this
paragraph may enroll in any insurance program authorized by the provisions of
this article at any time, to the same extent as any other qualified employee or
employer, but employee or employer may not remain enrolled in both programs. The
provisions of articles fourteen, fifteen and sixteen, chapter thirty-three of
this code, relating to group life insurance, accident and sickness insurance,
and group accident and sickness insurance, are not applicable to the provisions
of this article whenever the provisions of articles fourteen, fifteen and
sixteen, chapter thirty-three of this code are in conflict with or contrary to
any provision set forth in this article or to any plan or plans established by
the Public Employees Insurance Agency Any
plan established or administered by the Public Employees Insurance Agency
pursuant to this article is exempt from the provisions of chapter thirty-three
of this code, unless explicitly stated. Notwithstanding any provision of this
code to the contrary, the Public Employees Insurance Agency is not an “insurer”
or engaged in the “business of insurance” as defined in chapter thirty-three of
this code.
(c) Employers, other than the State of West Virginia, its boards, agencies, commissions, departments, institutions, spending units or a county board of education are exempt from participating in the insurance program provided for by the provisions of this article unless participation by the employer has been approved by a majority vote of the employer's governing body. It is the duty of the clerk or secretary of the governing body of an employer who by majority vote becomes a participant in the insurance program to notify the director not later than ten days after the vote.
(d) Any employer, whether the employer participates in the Public Employees Insurance Agency insurance program as a group or not, which has retired employees, their dependents or surviving dependents of deceased retired employees who participate in the Public Employees Insurance Agency insurance program as authorized by this article, shall pay to the agency the same contribution toward the cost of coverage for its retired employees, their dependents or surviving dependents of deceased retired employees as the State of West Virginia, its boards, agencies, commissions, departments, institutions, spending units or a county board of education pay for their retired employees, their dependents and surviving dependents of deceased retired employees, as determined by the finance board: Provided, That after June 30, 1996, an employer not mandated to participate in the plan is only required to pay a contribution toward the cost of coverage for its retired employees, their dependents or the surviving dependents of deceased retired employees who elect coverage when the retired employee participated in the plan as an active employee of the employer for at least five years: Provided, however, That those retired employees of an employer not participating in the plan who retire on or after July 1, 2010, who have participated in the plan as active employees of the employer for less than five years are responsible for the entire premium cost for coverage and the Public Employees Insurance Agency shall bill for and collect the entire premium from the retired employees, unless the employer elects to pay the employer share of the premium. Each employer is hereby authorized and required to budget for and make such payments as are required by this section.
NOTE: The purpose of this bill is to clarify that the Public Employees Insurance Agency and any plan it establishes or administers is exempt from Chapter 33, except where those provisions are made expressly applicable.
Strike-throughs indicate language that would be stricken from a heading or the present law, and underscoring indicates new language that would be added.