H. B. 4565
(By Delegate Keener)
[Introduced February 21, 2002; referred to the
Committee on Banking and Insurance then the Judiciary.]
A BILL to amend and reenact section eight, article twelve, chapter
eight of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, relating to continued health insurance
coverage for retired policemen and firemen.
Be it enacted by the Legislature of West Virginia:
That section eight, article twelve, chapter eight of the code
of West Virginia, one thousand nine hundred thirty-one, as amended,
be amended and reenacted to read as follows:
ARTICLE 12. GENERAL AND SPECIFIC POWERS, DUTIES AND ALLIED
RELATIONS OF MUNICIPALITIES, GOVERNING BODIES AND
MUNICIPAL OFFICERS AND EMPLOYEES; SUITS AGAINST
MUNICIPALITIES.
§8-12-8. Group insurance programs authorized.
Every municipality shall have has plenary power and authority
to negotiate for, secure and adopt for the regular employees
thereof (other than provisional, temporary, emergency and
intermittent employees) who are in employee status with such the
municipality on and after the effective date of this section and
for their spouses and dependents, a policy or policies of group
insurance written by a carrier or carriers chartered under the laws
of any state and duly licensed to do business in this state and
covering life; health; hospital care; surgical or medical
diagnosis, care and treatment; drugs and medicines; remedial care;
other medical supplies and services; or any other combination of
these; and any other policy or policies of group insurance which in
the discretion of the governing body bear a reasonable relationship
to the foregoing coverages. The provisions and terms of any such
group plan or plans of insurance shall be approved in writing by
the insurance commissioner of this state as to form, rate and
benefits.
The municipality is hereby authorized and empowered to pay the
entire premium cost, or any portion thereof, of said the group
policy or policies. Whenever the above-described regular employees
shall indicate in writing that they have subscribed to any of the aforesaid insurance plans on a group basis and the entire cost
thereof is not paid by the municipality, the municipality is hereby
authorized and empowered to make periodic premium deductions of the
amount of the contribution each such subscribing employee is
required to make for such participation from the salary or wage
payments due each such subscribing employee as specified in a
written assignment furnished to the municipality by each such
subscribing employee.
When a participating employee shall retire from his or her
employment, he or she may, if he or she so elects, remain a member
of the group plan and retain coverage for his or her spouse and
dependents, by paying the entire premium for the coverage involved.
Spouses and dependents of any deceased member may remain a member
of the group plan by paying the entire premium for the coverage:
Provided, That nothing herein shall be construed as prohibiting the
municipality from paying a portion or all of the cost of any
coverage. In the event that a municipality changes insurance
carriers, as a condition precedent to any such change, the
municipality shall assure that all retirees, their spouses and
dependents, and the spouses and dependents of any deceased member
are guaranteed acceptance, at the same cost for the same coverage as regular employees of similar age groupings, their spouses and
dependents, regardless of the current address of the retiree and
any subsequent change of address by a retiree, spouse of a retiree,
dependents and spouses and dependents of deceased members. In the
event a municipality changes to a health maintenance organization,
the municipality shall assure that retirees, spouses and dependents
of retirees maintain at least the same coverage as provided prior
to the change to the health maintenance organization
, regardless
where the retirees, spouses or dependents reside and the
municipality may not require the retiree, spouse or dependent to
return to the municipality in order to be eligible for health
insurance benefits from the health maintenance organization.
NOTE: The purpose of this bill is to require municipalities
to assure that retirees, spouses of retirees and dependents of
retirees retain health insurance coverage when a municipality
changes to a
health maintenance organization
, regardless where the
retiree resides.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.