H. B. 2525
(By Delegates Douglas, Kuhn, Butcher,
Hatfield, Manchin, Prunty and Leggett)
[Originating in the Committee on Government Organization]
[Introduced February 23, 2001]
A BILL to amend and reenact section three, article sixteen, chapter
five of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, relating to continuing the public
employees insurance agency.
Be it enacted by the Legislature of West Virginia:
That section three, article sixteen, chapter five of the code
of West Virginia, one thousand nine hundred thirty-one, as amended,
be amended and reenacted to read as follows:
ARTICLE 16. WEST VIRGINIA PUBLIC EMPLOYEES INSURANCE ACT.
§5-16-3. Public employees insurance agency continued; appointment,
qualification, compensation and duties of director of
agency; employees; civil service coverage; director
vested after specified date with powers of public
employees insurance board; expiration of agency.
(a) The public employees insurance agency is continued, and consists of the director, the finance board, the advisory board and
any employees who may be authorized by law. The director shall be
appointed by the governor, with the advice and consent of the
Senate. He or she shall serve at the will and pleasure of the
governor, unless earlier removed from office for cause as provided
by law. The director shall have at least three years experience in
health insurance administration prior to appointment as director.
The director shall receive an annual salary established by the
governor not to exceed sixty-five thousand dollars and actual
expenses incurred in the performance of official business. The
director shall employ such administrative, technical and clerical
employees as are required for the proper administration of the
insurance programs provided for in this article. The director
shall perform such duties as are required of him or her under the
provisions of this article and is the chief administrative officer
of the public employees insurance agency. The director may employ
a deputy director: Provided, That the director shall report each
year to the joint committee on government and finance on the
agency's total contract costs for consultant contracts and the
costs of the deputy director's position for the fiscal years one
thousand nine hundred ninety-eight through two thousand.
(b) All positions in the agency, except for the director, his
or her personal secretary, the deputy director and the chief
financial officer shall be included in the classified service of
the civil service system pursuant to article six, chapter
twenty-nine of this code. Any person required to be included in
the classified service by the provisions of this subsection who was
employed in any of the positions included in this subsection on or
after the effective date of this article shall not be required to
take and pass qualifying or competitive examinations upon or as a
condition to being added to the classified service: Provided, That
no person required to be included in the classified service by the
provisions of this subsection who was employed in any of the
positions included in this subsection as of the effective date of
this section shall be thereafter severed, removed or terminated in
his or her employment prior to his or her entry into the classified
service except for cause as if the person had been in the
classified service when severed, removed or terminated.
(c) The director is responsible for the administration and
management of the public employees insurance agency as provided for
in this article and in connection with his or her responsibility
shall have the power and authority to make all rules necessary to
effectuate the provisions of this article. Nothing in section four
or five of this article shall limit the director's ability to
manage on a day-to-day basis the group insurance plans required or
authorized by this article, including, but not limited to,
administrative contracting, studies, analyses and audits,
eligibility determinations, utilization management provisions and incentives, provider negotiations, provider contracting and
payment, designation of covered and noncovered services, offering
of additional coverage options or cost containment incentives,
pursuit of coordination of benefits and subrogation, or any other
actions which would serve to implement the plan or plans designed
by the finance board.
(d) The public employees insurance agency shall terminate in
the manner provided in article ten, chapter four of this code, on
the first day of July, two thousand one two, unless extended by
legislation enacted before the termination date: Provided, That
the public employees insurance agency advisory board, created in
section six of this article, shall terminate in the manner provided
in article ten, chapter four of this code on the first day of July,
one thousand nine hundred ninety-six.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates language that would be
added.