Virginia 2024 Regular Session

Virginia House Bill HB1153

Introduced

1/10/24

Refer

1/10/24

Report Pass

2/8/24

Engrossed

2/12/24

Caption

Benefits consortium; governing bodies of three or more cities, counties, or school boards to form.

Impact

If enacted, HB 1153 would have significant implications for local governance and employee benefits administration in Virginia. The bill presents a framework for localities to pool resources and share risks associated with employee welfare plans. This is particularly pertinent as local governments often face challenges with the rising costs of health insurance. The bill also aims to create a more competitive environment for employee benefits, which could lead to better options and cost savings for local employees. Furthermore, the bill stipulates a five-year membership requirement for localities, ensuring long-term commitment and cooperation among consortium members.

Summary

House Bill 1153 seeks to amend the Code of Virginia to allow the governing bodies of three or more localities, such as cities, counties, or school boards, to form a not-for-profit benefits consortium. The primary objective of this consortium is to establish self-funded employee welfare benefit plans for local government employees and their dependents. By enabling these entities to collaborate, the bill aims to create a more streamlined approach to employee benefits, potentially reducing costs and improving service efficiency across local governments in Virginia.

Contention

Notable points of contention surrounding HB 1153 include concerns regarding the governance structure of the benefits consortium and the implications for local control. Critics may argue that allowing multiple local governments to consolidate benefits could lead to a loss of autonomy in decision-making regarding employee benefits. Additionally, there might be apprehensions about the potential financial risks associated with launching a self-funded plan, especially if not properly managed. These issues emphasize the need for thorough oversight and prudent financial practices to ensure the consortium's success and sustainability.