As Introduced                            1            

122nd General Assembly                                             4            

   Regular Session                                  H. B. No. 212  5            

      1997-1998                                                    6            


  REPRESENTATIVES NETZLEY-TIBERI-BUCHY-LEWIS-HAINES-HOTTINGER-     8            

                      MOTTLEY-SCHUCK-GARCIA                        9            


                                                                   11           

                           A   B I L L                                          

             To enact section 124.823 of the Revised Code to give  13           

                state employees the option of choosing medical     14           

                savings accounts for their health care  coverage.  15           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        17           

      Section 1.  That section 124.823 of the Revised Code be      19           

enacted to read as follows:                                        20           

      Sec. 124.823.  (A)  THE DEPARTMENT OF ADMINISTRATIVE         23           

SERVICES SHALL INCLUDE MEDICAL SAVINGS ACCOUNTS AS PART OF ANY     24           

PACKAGE OF HEALTH CARE BENEFIT OPTIONS OFFERED TO STATE EMPLOYEES  25           

WHO ARE PAID DIRECTLY BY WARRANT OF THE AUDITOR OF STATE,          26           

INCLUDING ELECTED STATE OFFICIALS.  THE DEPARTMENT SHALL           27           

ESTABLISH THE ACCOUNTS IN ACCORDANCE WITH SECTIONS 3924.61 TO      28           

3924.74 OF THE REVISED CODE.  THE DEPARTMENT SHALL MAKE BOTH       30           

INDIVIDUAL AND FAMILY COVERAGE AVAILABLE THROUGH THE ACCOUNTS.     31           

      (B)  A STATE EMPLOYEE WHO CHOOSES THE MEDICAL SAVINGS        34           

ACCOUNT OPTION SHALL HAVE ANY STATE HEALTH, MEDICAL, HOSPITAL,     35           

DENTAL, SURGICAL, AND VISION BENEFITS FOR WHICH THE EMPLOYEE IS    36           

ELIGIBLE PROVIDED THROUGH THE MEDICAL SAVINGS ACCOUNT.  THE        37           

DEPARTMENT, UNDER SECTION 124.81 OR 124.82 OF THE REVISED CODE,    39           

SHALL CONTRACT FOR OR OTHERWISE PROVIDE A HIGH-DEDUCTIBLE POLICY   40           

OR CONTRACT THROUGH WHICH THOSE BENEFITS CAN BE PAID.  PURSUANT    41           

TO DIVISION (A) OF SECTION 3924.62 OF THE REVISED CODE, ALL STATE  43           

EMPLOYEES CHOOSING THE MEDICAL SAVINGS ACCOUNT OPTION SHALL        44           

PARTICIPATE IN THAT POLICY OR CONTRACT.  THE ANNUAL AMOUNT THE     45           

STATE PAYS FOR PREMIUMS UNDER THE POLICY OR CONTRACT FOR AN        46           

                                                          2      

                                                                 
EMPLOYEE SHALL NOT EXCEED ONE-HALF OF THE ANNUAL AMOUNT THE STATE  47           

DEPOSITS TO THE EMPLOYEE'S MEDICAL SAVINGS ACCOUNT.  THE AMOUNT    48           

OF THE ANNUAL DEDUCTIBLE UNDER THE POLICY OR CONTRACT FOR AN       49           

EMPLOYEE SHALL NOT BE LESS THAN THE ANNUAL AMOUNT THE STATE        50           

DEPOSITS TO THE EMPLOYEE'S MEDICAL SAVINGS ACCOUNT.                51           

      (C)  PURSUANT TO SECTION 3924.64 OF THE REVISED CODE, THE    54           

DEPARTMENT SHALL DESIGNATE THE ADMINISTRATOR OF A MEDICAL SAVINGS  55           

ACCOUNT AT THE TIME THE ACCOUNT IS OPENED.  HOWEVER, THE EMPLOYEE  56           

FOR WHOM THE ACCOUNT IS OPENED MAY DESIGNATE A DIFFERENT           57           

ADMINISTRATOR AT THAT TIME.  IF THE EMPLOYEE DESIGNATES A          58           

DIFFERENT ADMINISTRATOR, THE DEPARTMENT SHALL OPEN THE ACCOUNT IN  59           

ACCORDANCE WITH THE EMPLOYEE'S DESIGNATION.                        60           

      Section 2.  Section 124.823 of the Revised Code applies to   62           

state employee benefits offered for fiscal years that begin on or  63           

after July 1, 1997.                                                64