June 01, 2016
On Mar. 29, 2016, Gov. Tomblin signed SB 465 into law. Prior to this law, a professional employer organization (PEO) that sponsored a health benefit plan was prohibited from self-insuring the coverage. This law permits PEOs that hold the appropriate license to insure its risks for accident and sickness insurance for all employees through a captive insurance company, as long as it complies with the provisions governing captive insurance. It further clarifies that all employees covered by a PEO’s health benefit plan are considered employees of the PEO and the plans offered pursuant to this provision are treated as a single employer welfare benefit plan for purposes of state law. The law becomes effective June 10, 2016.
SB 465 »