                                 CODE OF VIRGINIA

HEALTH INSURANCE PROGRAM FOR EMPLOYEES OF LOCAL GOVERNMENTS, LOCAL OFFICERS,
TEACHERS, ETC.; DEFINITIONS (§ 2.2-1204)

A. The Department shall establish a plan or plans, hereinafter
&#8220;plan&#8221; or &#8220;plans,&#8221; 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 &#xA7; 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&#8217;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 (&#xA7; 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, cost
containment programs, and administrative expenses shall be withdrawn from time
to time. The assets of the fund shall be held for the sole benefit of the
employee health insurance fund. The fund shall be held in the state treasury.
Any interest on unused balances in the fund shall revert back to the credit of
the fund. The State Treasurer shall charge reasonable fees to recover the actual
costs of investing the assets of the plan or plans.
			In establishing the participation requirements, the Department may provide
that those employees, officers, and teachers without access to
employer-sponsored health care coverage may participate in the plan. It shall
collect all premiums directly from the employers of such employees, officers,
and teachers.

C. In the event that the financial reserves of the plan fall to an unacceptably
low level as determined by the Department, it shall have the authority to secure
from the State Treasurer a loan sufficient to raise the reserve level to one
that is considered adequate. The State Treasurer may make such a loan, to be
repaid on such terms and conditions as established by him.

D. For the purposes of this section:
			&#8220;Employees of local governments&#8221; includes all officers and
employees of the governing body of any county, city, or town, and the directing
or governing body of any political entity, subdivision, branch, or unit of the
Commonwealth or of any commission or public authority or body corporate created
by or under an act of the General Assembly specifying the power or powers,
privileges, or authority capable of exercise by the commission or public
authority or body corporate, as distinguished from &#xA7; 15.2-1300, 15.2-1303,
or similar statutes, provided that the officers and employees of a transit
company, social services department, welfare board, community services board or
behavioral health authority, or library board of a county, city, or town shall
be deemed to be employees of local government. For purposes of this section,
private nonprofit organizations are not governmental agencies or
instrumentalities.
			&#8220;Local officer&#8221; means the treasurer, registrar, commissioner of
the revenue, attorney for the Commonwealth, clerk of a circuit court, sheriff,
or constable of any county or city or deputies or employees of any of the
preceding local officers.
			&#8220;Teacher&#8221; means any employee of a county, city, or other local
public school board.
			&#8220;Transit company&#8221; means a public service corporation, as defined
in &#xA7; 56-1, that is wholly owned by any county, city, or town, or any
combination thereof, that provides public transportation services.

HISTORY: 1989, c. 475, § 2.1-20.1:02; 1997, cc. 803, 888, 891; 2000, cc. 66,
620, 649, 657; 2001, cc. 520, 806, 844; 2008, c. 403; 2011, c. 489; 2012, cc.
476, 507, 803, 835; 2013, c. 687; 2016, c. 512; 2020, c. 555.