By its agreement to participate in the PEIA
plan, a non-State entity is required by PEIA to stay in the plan for a minimum of three years. If a participating county or
municipal government or other employer withdraws or is terminated from the PEIA plan, coverage for all affected
insureds ends on the effective date of that employer’s withdrawal/termination.
If a non-state entity terminates their contract with PEIA, the agency will be unable to re-enroll at any time in the future.
PEIA requires a written 30-day notice of a
Non-State Agency’s intent to terminate its contract with PEIA. Eligible retirees may continue participation
in PEIA. The withdrawn agency is billed a non-participating agency premium for
these retirees. Retirees not eligible to participate in PEIA must look to their
former employer for retiree coverage.
On April 10, 2021, the West Virginia Legislature passed SB 398, creating W. Va. Code §5-16-29, which prohibits enrollment in the PEIA Plan for any non-state entities not currently participating in the plan, with the exception of certain charter school employees.
This law is effective upon the date of passage.
All non-state entities participating in the PEIA plans on or before April 9, 2021, can remain, but if they were to leave and try to return, they would be prevented from doing so under current law.
The text of the law can be found below.
ARTICLE 16. WEST VIRGINIA PUBLIC EMPLOYEES INSURANCE ACT.
§5-16-29. Limitation on PEIA participation.
Notwithstanding any other provision of this article to the contrary, the director may not consider any employer eligible for participation in a plan except for the following:
(1) All mandatory participants, including the State of West Virginia, its boards, agencies, commissions, departments, institutions, or spending units.
(2) Any county board of education or public charter school established pursuant to §18- 5G-1 et seq. of this code, if the charter school includes in its charter contract entered into pursuant to §18-5G-7 of this code a determination to participate in the Public Employees Insurance program: Provided, That as it relates to eligible public charter schools, only employees directly employed by a charter school that is exempt from the payment of taxes under the United States Internal Revenue Code, Title 26 U.S.C. §501(c)(3), may participate in a plan.
(3) Any employer participating in a plan as of the effective date of the enactment of this section in the regular session of the Legislature, 2021.