Officials in multiple counties were caught off guard by a 2-year-old change in state law that prevents workers hired after July 1,1998, from obtaining health insurance through the state when theyretire.
In 2008, the state Legislature changed a law that allowedemployees of local government agencies that didn't participate inthe Public Employees Insurance Agency to pick up coverage uponretirement.
Now, county and city governments that don't participate in thestate-run insurance program are grappling with how, or if, they'regoing to provide health insurance to retirees.
About 20 of the state's 55 counties don't participate in PEIA,said Patti Hamilton, executive director of the West VirginiaAssociation of Counties.
She believes most did not know about the law change even thoughPEIA officials sent out an email informing non-participatingagencies of the consequences.
'I think most counties are finding out about the change in thelaw when their first employee to retire since then is denied healthbenefits,' Hamilton said.
Although Hamilton was aware of the law change in 2008, she saidshe did not discuss the issue with county officials because she didnot know what the consequences would be.
Kanawha County Commission President Kent Carper was among thosewho weren't aware of the change. Carper said he learned of it in mid-May when investigating an unrelated retirement issue.
Carper has said he follows the Legislature closely and criticizedPEIA for not adequately notifying those who would be affected.
But PEIA Director Ted Cheatham believes agencies were adequatelynotified about the change. Cheatham said an email was sent to allagencies registered with PEIA explaining the change in June 2008.
'Kent's staff had to know about this,' Cheatham said.
Carper also has said the notification, which was again sent tothe county after a recent commission meeting, was not clear aboutthe ramifications. However, he believes the notification process isa moot point and the county simply has to deal with the situation.
'We just have to decide what to do,' he said.
Marshall County Administrator Betsy Frohnapfel was aware of thelaw change in 2008 when it was making its way through theLegislature. However, she was not sure how the county became awareof the issue.
'Our county clerk is very involved in what goes on at theLegislature,' she said.
Marshall County also doesn't participate in PEIA. The county'sinsurance is through the Health Plan of the Upper Ohio Valley,Frohnapfel said.
The policy covers both active employees and retirees, she said.The county opted to go with the private insurance company in 2000,she said.
'We like our policy and we'll not be going back to PEIA,' shesaid.
Retirees from non-participating agencies can obtain PEIA coverageif the agency from which they retire goes back to the state-runprogram.
Wood County Commission President Blair Couch is in the same boatas Carper. Couch said he wasn't aware of the change and wasdisappointed with the notification process.
Wood County did not become aware of the change until lastFebruary, when an employee who retired was denied PEIA coverage,County Clerk Jamie Six said.
'This really snuck up on us,' he said.
Like Kanawha, officials in Wood County are looking at insuranceoptions for retirees. The county is gathering information and hasn'tdecided what to do, Couch said.
Beckley Mayor Emmett Pugh said he vaguely remembers the 2008 lawchange. The long-time mayor said the city provides insurance toactive employees and retirees through a private carrier.
'I remember the legislation, but quite frankly I don't rememberit passing,' Pugh said.
Pugh said some retiring employees in Beckley did opt for PEIAcoverage before the rule change.
'We really haven't looked into this recently, but I will be now,'he said about the consequences of the rule change.
Charleston officials were not aware of the rule change becausethe city insures active employees and retirees, City Manager DavidMolgaard said.
The city paid about $8.2 million for health care coverage for allactive employees and retirees from July 2010 to May 2011, accordingto figures provided by Finance Director Joe Estep.
Of that $8.2 million, employees paid premiums totaling $2.3million, or about 28 percent.
Kanawha County pays premiums to PEIA for its retirees covered bythe state system. About 91 county retirees hired before July 1, 1998can still take advantage of the state coverage.
The county pays about $450,000 a year to the state agency ininsurance premiums, according to figures provided by the county.
Contact writer Paul Fallon at paul.fallon@dailymail.com or 304-348-4817.
