                                 CODE OF VIRGINIA

CONTINUED HEALTH INSURANCE COVERAGE FOR DISABLED PERSONS, ELIGIBLE SPOUSES, AND
ELIGIBLE DEPENDENTS (§ 9.1-401)

A. Disabled persons, eligible spouses, and eligible dependents shall be afforded
continued health insurance coverage as provided in this section, the cost of
which shall be paid by the nonparticipating employer to the Department of Human
Resource Management or from the Fund on behalf of a participating employer,
contributing nonprofit private institution of higher education, or contributing
private police department, as applicable. If any disabled person or eligible
spouse is receiving the benefits described in this section and would otherwise
qualify for the health insurance credit described in Chapter 14 (&#xA7;
51.1-1400 et seq.) of Title 51.1, the amount of such credit shall be deposited
into the Line of Duty Death and Health Benefits Trust Fund or paid to the
nonparticipating employer, as applicable, from the health insurance credit trust
fund, in a manner prescribed by VRS.

B. 1. The continued health insurance coverage provided by this section for all
disabled persons, eligible spouses, and eligible dependents shall be through
separate plans, referred to as the LODA Health Benefits Plans (the Plans),
administered by the Department of Human Resource Management. The Plans shall
comply with all applicable federal and state laws and shall be modeled upon
state employee health benefits program plans. Funding of the Plans&#8217;
reserves and contingency shall be provided through a line of credit, the amount
of which shall be based on an actuarially determined estimate of liabilities.
The Department of Human Resource Management shall be reimbursed for health
insurance premiums and all reasonable costs incurred and associated, directly
and indirectly, in performing the duties pursuant to this section (i) from the
Line of Duty Death and Health Benefits Trust Fund for costs related to disabled
persons, deceased persons, eligible dependents, and eligible spouses on behalf
of participating employers, contributing nonprofit private institutions of
higher education, and contributing private police departments and (ii) from a
nonparticipating employer for premiums and costs related to disabled persons,
deceased persons, eligible dependents, and eligible spouses for which the
nonparticipating employer is responsible. If any nonparticipating employer fails
to remit such premiums and costs, the Department of Human Resource Management
shall inform the State Comptroller and the affected nonparticipating employer of
the delinquent amount. In calculating the delinquent amount, the Department of
Human Resource Management may impose an interest rate of one percent per month
of delinquency. The State Comptroller shall forthwith transfer such delinquent
amount, plus interest, from any moneys otherwise distributable to such
nonparticipating employer.

   2. In the event that temporary health care insurance coverage is needed for
   disabled persons, eligible spouses, and eligible dependents during the period
   of transition into the LODA Health Benefits Plans, the Department of Human
   Resource Management is authorized to acquire and provide temporary
   transitional health insurance coverage. The type and source of the
   transitional health plans shall be within the sole discretion of the
   Department of Human Resource Management. Transitional coverage for eligible
   dependents shall comply with the eligibility criteria of the transitional
   plans until enrollment in the LODA Health Benefits Plan can be completed.

C. 1. a. Except as provided in subdivision 2 and any other law, continued health
insurance coverage in any LODA Health Benefits Plans shall not be provided to
any person (i) whose coverage under the Plan is based on a deceased
person&#8217;s death or a disabled person&#8217;s disability occurring on or
after July 1, 2017 and (ii) who is eligible for Medicare due to age.
			b. Coverage in the LODA Health Benefits Plans shall also cease for any person
upon his death.

   2. The provisions of subdivision 1 a shall not apply to any disabled person
   who is eligible for Medicare due to disability under Social Security
   Disability Insurance or a Railroad Retirement Board Disability Annuity. The
   Department of Human Resource Management may provide such disabled person
   coverage under a LODA Health Benefits Plan that is separate from the plan for
   other persons.

   3. Continued health insurance under this section shall also terminate upon the
   disabled person&#8217;s return to full duty in any position listed in the
   definition of deceased person in &#xA7; 9.1-400. Such disabled person shall
   promptly notify the participating or nonparticipating employer, the
   contributing nonprofit private institution of higher education, or the
   contributing private police department and VRS and the Department of Human
   Resource Management upon his return to work.

   4. Such continued health insurance shall be suspended for the Plan year
   following a calendar year in which the disabled person whose coverage under
   the Plan is based on a disability occurring on or after July 1, 2017, has
   earned income in an amount equal to or greater than the salary of the position
   held by the disabled person at the time of disability, indexed annually based
   upon the annual increases in the United States Average Consumer Price Index
   for all items, all urban consumers (CPI-U), as published by the Bureau of
   Labor Statistics of the U.S. Department of Labor. Such suspension shall cease
   the Plan year following a calendar year in which the disabled person has not
   earned such amount of income. The disabled person shall notify the
   participating or nonparticipating employer, the contributing nonprofit private
   institution of higher education, or the contributing private police department
   and VRS and the Department of Human Resource Management no later than March 1
   of the year following any year in which he earns income of such amount and
   shall notify the participating or nonparticipating employer, the contributing
   nonprofit private institution of higher education, or the contributing private
   police department and VRS and the Department of Human Resource Management when
   he no longer is earning such amount. Upon request, a disabled person shall
   provide VRS and the Department of Human Resource Management with documentation
   of earned income.

HISTORY: 1998, c. 712, § 2.1-133.7:1; 2000, c. 616; 2001, c. 844; 2016, c. 677;
2017, c. 439; 2025, cc. 204, 219.