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2016 Session

Budget Amendments - HB30 (Conference Report)

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Review of VARisk (language only)

Item 76 #1c

Item 76 #1c

Administration
Compensation Board

Language

Page 59, after line 18, insert:

"T. 1. The State Compensation Board is hereby directed to convene a group of stakeholders comprised of, and representing the interests of, constitutional officers, regional jail authorities, and local governments to jointly review current and alternative primary liability, medical malpractice, and employee malfeasance policy coverages and contracts, and alternatives for liability reinsurance, for such coverage currently paid for by localities under VARisk.

2. In its review, the group shall consider the premiums which have been and are currently being charged to local governments by VARisk for primary liability, medical malpractice, and employee malfeasance policy coverages for the current and prior five (5) years, and the educational and training services that have been and are currently being provided to constitutional officers in coordination with the VARisk coverage over the same time period. These findings shall be compared by the State Compensation Board and stakeholders to potential alternative coverage and contracts which could be provided by public and private providers of primary liability, medical malpractice, and employee malfeasance policy coverage, and reinsurance coverage to insure constitutional officers, regional jails authorities, and local governments, and the premiums that would be charged for such coverage. In its review, the group shall also identify and compare any and all policy limits, exclusions, and terms and conditions of VARisk and comparable coverages available from public or private insurance providers.

3. The State Compensation Board and stakeholders shall determine whether the available alternative coverage and service options are competitive with or preferable to the coverage and service options provided under VARisk, and the potential financial benefits or liabilities to the stakeholders or the Commonwealth resulting from the provision of primary liability, medical malpractice, employee malfeasance, and reinsurance coverage by alternative providers, and shall report their findings by December 1, 2016, to the Chairmen of the House Appropriations Committee and the Senate Finance Committee.

4. The Director, Division of Risk Management, shall provide technical assistance to the stakeholder group upon request of the Executive Secretary of the Compensation Board."



Explanation

(This amendment directs the State Compensation Board to convene a group of stakeholders representing constitutional officers, regional jails, and local governments to examine costs of and alternatives to the primary liability, medical malpractice, and employee malfeasance policy coverage offered by the VARisk program. The group is required to report their findings to the Chairmen of the House Appropriations and Senate Finance Committees no later than December 1, 2016.)