CHARLESTON, W.Va. -- Legislation to pay down a $5 billion unfunded liability for cost of future retiree health-care benefits for state and public school employees could be headed to Gov. Earl Ray Tomblin for his signature by Thursday.
In an afternoon meeting, rare this early in the legislative session, the House Finance Committee advanced the bill (SB469) to the full House without amendment. It passed on a voice vote, with some Republican members voting no.
Among those dissenting was Delegate Daryl Cowles, R-Morgan, who said he thinks the bill is unconstitutional because it allows the state to absorb the liability for county school boards.
"If the state's going to take the debt, perhaps rightfully so, then they're state employees," he said of teachers and school service personnel covered by Public Employees Insurance Agency plans.
The West Virginia Constitution says the state cannot be made responsible for the liabilities of any entity of county or city government. However, the next section of the Constitution gives the state authority to allocate funds to political subdivisions.
"Under current law, these are county employees and county debt," Cowles said of the school systems' OPEB liability. "After this bill passes, we're still going to call them county employees, but the debt will be state debt."
Ted Cheatham, PEIA's executive director, told the committee that, under the legislation, about $800 million of unfunded liability currently assessed to the county school boards would be booked as the state Department of Education's liability.
Delegate Bob Ashley, R-Roane, raised concerns over a section of the bill that directs the PEIA executive director to pursue a number of measures aimed at reducing PEIA costs, including limiting or refusing payment for treatment of hospital-acquired infections, or for re-admission for treatment of the same diagnosis within 30 days of hospital discharge.
CHARLESTON, W.Va. -- Legislation to pay down a $5 billion unfunded liability for cost of future retiree health-care benefits for state and public school employees could be headed to Gov. Earl Ray Tomblin for his signature by Thursday.
In an afternoon meeting, rare this early in the legislative session, the House Finance Committee advanced the bill (SB469) to the full House without amendment. It passed on a voice vote, with some Republican members voting no.
Among those dissenting was Delegate Daryl Cowles, R-Morgan, who said he thinks the bill is unconstitutional because it allows the state to absorb the liability for county school boards.
"If the state's going to take the debt, perhaps rightfully so, then they're state employees," he said of teachers and school service personnel covered by Public Employees Insurance Agency plans.
The West Virginia Constitution says the state cannot be made responsible for the liabilities of any entity of county or city government. However, the next section of the Constitution gives the state authority to allocate funds to political subdivisions.
"Under current law, these are county employees and county debt," Cowles said of the school systems' OPEB liability. "After this bill passes, we're still going to call them county employees, but the debt will be state debt."
Ted Cheatham, PEIA's executive director, told the committee that, under the legislation, about $800 million of unfunded liability currently assessed to the county school boards would be booked as the state Department of Education's liability.
Delegate Bob Ashley, R-Roane, raised concerns over a section of the bill that directs the PEIA executive director to pursue a number of measures aimed at reducing PEIA costs, including limiting or refusing payment for treatment of hospital-acquired infections, or for re-admission for treatment of the same diagnosis within 30 days of hospital discharge.
"I feel like this is something that could hurt and trip up our small hospitals," he said.
Committee members rejected on a voice vote Ashley's amendment to remove those provisions from the bill.
The committee also rejected an amendment by Delegate Ray Canterbury, R-Greenbrier, that would have required PEIA to encourage insurees to consider lower-cost medical-care options outside the United States.
Cheatham, however, said PEIA has negotiated such low rates with in-state hospitals that care in overseas facilities might not be less expensive.
"It might be cheaper to do it at WVU or CAMC than to send them overseas," he said.
House Finance Chairman Harry Keith White, D-Mingo, said he does not expect the House to suspend rules and pass the bill in a single day, as the Senate did Wednesday. That would put the bill in line for a final passage vote on Thursday, which will be the midpoint of the 60-day regular session.
Reach Phil Kabler at ph...@wvgazette.com or 304-348-1220.
