Virginia HB 331: Health insurance; plan for state and local government employees.

Bill Text

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2018 SESSION

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18101456D

HOUSE BILL NO. 331 

Offered January 10, 2018 

Prefiled January 4, 2018 

A BILL to amend and reenact �� 2.2-1204 and 2.2-2818 of the 
 Code of Virginia, relating to health insurance plans for state and local 
 government employees; reference-based pricing. 
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Patron-- Yancey 

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Referred to Committee on Appropriations 

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Be it enacted by the General Assembly of Virginia:

1. That �� 2.2-1204 and 2.2-2818 of the Code of Virginia are 
 amended and reenacted as follows:

� 2.2-1204. Health insurance program for employees of local 
 governments, local officers, teachers, etc.; definitions.

A. The Department shall establish a plan or plans, hereinafter 
 "plan" or "plans," subject to the approval of the Governor, 
 for providing health insurance coverage for employees of local governments, 
 local officers, teachers, and retirees, and the dependents of such employees, 
 officers, teachers, and retirees. The plan or plans shall be rated separately 
 from the plan established pursuant to � 2.2-2818 to provide health and related 
 insurance coverage for state employees. Participation in such insurance plan or 
 plans shall be (i) voluntary, (ii) approved by the participant's respective 
 governing body, or by the local school board in the case of teachers, and (iii) 
 subject to regulations adopted by the Department. In addition, at the option of 
 a governing body or school board that has elected to participate in the health 
 insurance plan or plans offered by the Department, the governing body or school 
 board may elect to participate in the voluntary employee-pay-all long-term care 
 program offered by the Commonwealth.

B. The plan or plans established by the Department, one of 
 which may be similar to the state employee plan, shall satisfy the requirements 
 of the Virginia Public Procurement Act (� 2.2-4300 et seq.), shall consist of a 
 flexible benefits structure that permits the creation of multiple plans of 
 benefits, and may provide for single or separate rating groups based upon 
 criteria established by the Department. The Department shall adopt regulations 
 regarding the establishment of such a plan or plans, including, but not limited 
 to, requirements for eligibility, participation, access and egress, mandatory 
 employer contributions and financial reserves, adverse experience adjustments, 
 and the administration of the plan or plans. The Department may engage the 
 services of other professional advisors and vendors as necessary for the 
 prudent administration of the plan or plans. The assets of the plan or plans, 
 together with all appropriations, premiums, and other payments, shall be 
 deposited in the employee health insurance fund, from which payments for 
 claims, premiums,