H. B. 4401


(By Delegates Walters, Border and Wallace)
[Introduced February 8, 1994; referred to the
Committee on Banking and Insurance then Finance.]




A BILL to amend chapter five of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new article, designated article sixteen-b, relating to the West Virginia employees insurance act; authorizing insurance companies, health maintenance organizations and other health care providers to offer coverage to state employees; options to include same coverage; and promulgation of rules.

Be it enacted by the Legislature of West Virginia:

That chapter five of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new article, designated article sixteen-b, to read as follows:
ARTICLE 16B. WEST VIRGINIA PUBLIC EMPLOYEES INSURANCE ACT OPTION.

§ 5 - 16B - 1. Legislative intent.

It is the express intent of the Legislature to continue to encourage and promote a uniform partnership relation between all employers and employees participating in the insurance plan or plans formulated under the provisions of article sixteen of this chapter and to provide optional insurance coverage to public employees directly from insurance companies, health maintenance organizations and other health care providers for the same coverage fee provided under the provisions of article sixteen of this chapter.

§ 5-16B-2. Public employees to have option of insurance plans; director to promulgate rules.

Notwithstanding any provision of article sixteen of this chapter to the contrary, the director of the public employees insurance agency shall adopt a program by the first day of July, one thousand nine-hundred ninety-four, that will allow insurance companies, health maintenance organizations and other health service providers to offer insurance coverage to state employees. The insurance shall include options for the same coverage provided under the provisions of article sixteen of this chapter, with a low option, high option fee for the service plan and indemnity plan, including the use of medical savings accounts.

An employee, as defined in section two, article sixteen of this chapter, shall have the option to choose any such insurance plan or continue under the current state insurance coverage and plan provided by article sixteen of this chapter.
The director shall promulgate rules to implement this article and the rules shall be similar to the federal employees health benefits plan.
§ 5-16B-3. Funding levels for current insurance benefits to be frozen.

The funding levels for public employees insurance benefits shall be frozen at the current amounts in the budget for the fiscal year one thousand nine hundred ninety-three--ninety-four.




NOTE: The purpose of this bill is to permit insurance companies, health maintenance organizations and other health care providers to offer coverage to state employees covered by insurance through the Public Employees Insurance Act and to give the state employees the option to select either plan for insurance coverage.

Article §5-16B is new; therefore, strike-throughs and underscoring have been omitted.