As Reported by the Senate Ways and Means Committee          1            

122nd General Assembly                                             4            

   Regular Session                         Am. Sub. H. B. No. 212  5            

      1997-1998                                                    6            


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

MOTTLEY-SCHUCK-GARCIA-VESPER-OLMAN-WILLIAMS-BRADING-TERWILLEGER-   9            

   VAN VYVEN-CORBIN-GRENDELL-CATES-REID-CAREY-BATCHELDER-WISE-     10           

     KASPUTIS-MYERS-HARRIS-HOUSEHOLDER-THOMPSON-HOOD-HODGES-       11           

        COUGHLIN-KREBS-THOMAS-SCHURING-WACHTMANN-JORDAN-           12           

                   SENATORS GARDNER-DRAKE-NEIN                     13           


                                                                   15           

                           A   B I L L                                          

             To enact section 124.823 of the Revised Code to       17           

                require the Department of Administrative Services  18           

                to establish a medical  savings account program    19           

                available to certain state  employees.             21           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        23           

      Section 1.  That section 124.823 of the Revised Code be      25           

enacted to read as follows:                                        26           

      Sec. 124.823.  THE DEPARTMENT OF ADMINISTRATIVE SERVICES     28           

SHALL ESTABLISH A PILOT PROGRAM UNDER WHICH IT INCLUDES MEDICAL    29           

SAVINGS ACCOUNTS AS PART OF ANY PACKAGE OF HEALTH CARE BENEFIT     30           

OPTIONS OFFERED TO STATE EMPLOYEES AND STATE ELECTED OFFICIALS     31           

PAID BY WARRANT OF THE AUDITOR OF STATE.  EXCEPT FOR THE           32           

PROVISIONS IN DIVISIONS (A) AND (B) OF SECTION 3924.64 OF THE      34           

REVISED CODE CONCERNING DESIGNATION OF AN ADMINISTRATOR, A         35           

MEDICAL SAVINGS ACCOUNT ESTABLISHED AS PART OF THE PROGRAM IS                   

SUBJECT TO SECTIONS 3924.64 TO 3924.74 OF THE REVISED CODE.        36           

      THE DEPARTMENT IS NOT REQUIRED TO OFFER THE MEDICAL SAVINGS  40           

ACCOUNT OPTION TO ANY STATE EMPLOYEE WHO IS COVERED UNDER A        41           

COLLECTIVE BARGAINING AGREEMENT ENTERED INTO PURSUANT TO CHAPTER   42           

4117. OF THE REVISED CODE, BUT A MEDICAL SAVINGS ACCOUNT OPTION                 

MAY BE PART OF A PACKAGE OF HEALTH CARE BENEFIT OPTIONS OFFERED    43           

                                                          2      

                                                                 
PURSUANT TO A COLLECTIVE BARGAINING AGREEMENT.  THE DEPARTMENT     44           

MAY LIMIT ENROLLMENT IN THE MEDICAL SAVINGS ACCOUNT PROGRAM AND    45           

MAY REQUIRE STATE EMPLOYEES ENROLLED IN IT TO CONTRIBUTE TO THEIR  47           

MEDICAL SAVINGS ACCOUNTS.  THE DEPARTMENT SHALL MAKE BOTH          48           

INDIVIDUAL AND FAMILY COVERAGE AVAILABLE THROUGH THE ACCOUNTS.                  

THE PROGRAM SHALL NOT INCREASE THE COST OF PROVIDING HEALTH        49           

INSURANCE TO STATE EMPLOYEES.  THE DEPARTMENT MAY END THE PROGRAM  50           

AT ANY TIME NOT SOONER THAN TWO YEARS AFTER IT IS ESTABLISHED,     51           

EXCEPT THAT THE DEPARTMENT MAY NOT END THE PROGRAM PRIOR TO        52           

PROVIDING SIX MONTHS' NOTICE TO THE SPEAKER OF THE HOUSE OF        53           

REPRESENTATIVES, PRESIDENT OF THE SENATE, MINORITY LEADER OF THE                

HOUSE AND MINORITY LEADER OF THE SENATE, AND THE CHAIRS OF THE     54           

STANDING COMMITTEES OF THE SENATE AND HOUSE OF REPRESENTATIVES     55           

WITH PRIMARY RESPONSIBILITY FOR HEALTH AND INSURANCE LEGISLATION.  56           

      A STATE EMPLOYEE WHO CHOOSES THE MEDICAL SAVINGS ACCOUNT     59           

OPTION SHALL HAVE ANY STATE HEALTH, MEDICAL, HOSPITAL, DENTAL,     60           

SURGICAL, AND VISION BENEFITS FOR WHICH THE EMPLOYEE IS ELIGIBLE   61           

PROVIDED THROUGH THE MEDICAL SAVINGS ACCOUNT.  THE DEPARTMENT,     62           

UNDER SECTION 124.81 OR 124.82 OF THE REVISED CODE, SHALL          64           

CONTRACT FOR OR OTHERWISE PROVIDE A HIGH-DEDUCTIBLE POLICY OR      65           

CONTRACT THROUGH WHICH THOSE BENEFITS CAN BE PAID.                 66           

      THE EMPLOYEE FOR WHOM A MEDICAL SAVINGS ACCOUNT IS OPENED    69           

SHALL AT THE TIME THE ACCOUNT IS OPENED CHOOSE AN ADMINISTRATOR    70           

FROM A LIST OF ADMINISTRATORS DESIGNATED BY THE DEPARTMENT, ONE                 

OF WHICH MAY BE THE INSURER FROM WHICH THE DEPARTMENT PURCHASES    71           

THE HIGH-DEDUCTIBLE POLICY OR CONTRACT.  IF THE EMPLOYEE FAILS TO  73           

CHOOSE AN ADMINISTRATOR, THE DEPARTMENT SHALL DESIGNATE AN         74           

ADMINISTRATOR.                                                                  

      IF AN ELECTED STATE OFFICIAL WHOSE TERM COMMENCED PRIOR TO   76           

THE ESTABLISHMENT OF THE PROGRAM ELECTS TO PARTICIPATE IN THE      77           

MEDICAL SAVINGS ACCOUNT PROGRAM, PARTICIPATION SHALL COMMENCE AT   78           

THE BEGINNING OF THE TERM FOLLOWING ESTABLISHMENT OF THE PROGRAM.  79