REPRESENTATIVES Schmidt, Allen, Setzer, Seitz, Aslanides, C. Evans, Olman, Schneider, Schaffer, Raga, Webster, Buehrer, Skindell, Beatty, Brown, Chandler, Cirelli, Collier, Daniels, DeBose, Domenick, Hartnett, Harwood, Hughes, Jolivette, Key, Miller, Otterman, S. Patton, Perry, Price, Redfern, Reidelbach, Seaver, S. Smith, D. Stewart, J. Stewart, Strahorn, Yates

To amend sections 124.84, 124.841, and 505.60 of the

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Revised Code to permit the state and political

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subdivisions to pay some or all of the premium for

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their employees' long-term care insurance.

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

Section 1. That sections 124.84, 124.841, and 505.60 of the	5
Revised Code be amended to read as follows:	6

Sec. 124.84.  (A) The department of administrative services,	7
in consultation with the superintendent of insurance and subject	8
to division (D) of this section, shall negotiate and contract with	9
one or more insurance companies or health insuring corporations	10
authorized to operate or do business in this state for the	11
purchase of a policy of long-term care insurance covering all	12
state employees who are paid directly by warrant of the auditor of	13
state, including elected state officials. Any policy purchased	14
under this division shall be negotiated and entered into in	15
accordance with the competitive selection procedures specified in	16
Chapter 125. of the Revised Code. As used in this section,	17
"long-term care insurance" has the same meaning as in section	18
3923.41 of the Revised Code.	19

(B) Any elected state official or state employee paid	20
directly by warrant of the auditor of state may elect to	21
participate in any long-term care insurance policy purchased under	22
division (A) of this section and any official or employee who does	23
so shall be responsible for paying the entire premium charged,	24
which shall be deducted from the official's or employee's salary	25
or wage and be remitted by the auditor of state directly to the	26
insurance company or health insuring corporation. All or any	27
portion of the premium charged may be paid by the state.	28
Participation in the policy may include the dependents and family	29
members of the elected state official or state employee.	30

If a participant in a long-term care insurance policy leaves	31
employment, the participant and the participant's dependents and	32
family members may, at their election, continue to participate in	33
a policy established under this section in the same manner as if	34
the participant had not left employment. The manner of payment and	35
the portion of premium charged the participant, dependent, and	36
family member shall be established pursuant to division (E) of	37
this section.	38

(C) Any long-term care insurance policy purchased under this	39
section or section 124.841 or 145.581 of the Revised Code shall	40
provide for all of the following with respect to the premiums	41
charged for the policy:	42

(1) They shall be set at the entry age of the official or	43
employee when first covered by the policy and shall not increase	44
except as a class during coverage under the policy.	45

(2) They shall be based on the class of all officials or	46
employees covered by the policy.	47

(3) They shall continue, pursuant to section 145.581 of the	48
Revised Code, after the retirement of the official or employee who	49
is covered under the policy, at the rate in effect on the date of	50
the official's or employee's retirement.	51

(D) Prior to entering into a contract with an insurance	52
company or health insuring corporation for the purchase of a	53
long-term care insurance policy under this section, the department	54
shall request the superintendent of insurance to certify the	55
financial condition of the company or corporation. The department	56
shall not enter into the contract if, according to that	57
certification, the company or corporation is insolvent, is	58
determined by the superintendent to be potentially unable to	59
fulfill its contractual obligations, or is placed under an order	60
of rehabilitation or conservation by a court of competent	61
jurisdiction or under an order of supervision by the	62
superintendent.	63

(E) The department shall adopt rules in accordance with	64
section 111.15 of the Revised Code governing long-term care	65
insurance purchased under this section. The rules shall establish	66
methods of payment for participation under this section, which may	67
include establishment of a payroll deduction planAll or any	68
portion of the premium charged the participants, dependents, and	69
family members shall be paid in such manner or combination of	70
manners as the department determines.	71

Sec. 124.841.  (A) As used in this section:

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(1) "Long-term care insurance" has the same meaning as in	73
section 3923.41 of the Revised Code.	74

(2) "Political subdivision" has the same meaning as in	75
section 9.833 of the Revised Code.	76

(B) Any political subdivision may negotiate with and may	77
contract with one or more insurance companies or health insuring	78
corporations authorized to operate or do business in this state	79
for the purchase of a policy of long-term care insurance covering	80
all elected officials and employees of the political subdivision.	81
The contract may be entered into without competitive bidding. Any	82
elected official or employee of a political subdivision may elect	83
to participate in any long-term care insurance policy that the	84
political subdivision purchases under this division and any	85
official or employee who does so shall be responsible for paying	86
the entire premium charged, which shall be deducted from the	87
official's or employee's salary or wage and be remitted directly	88
to the insurance company or health insuring corporation.	89

(C) Any long-term care insurance policy entered into under	90
this section is subject to division (C) of section 124.84 of the	91
Revised Code.	92

(D) All or any portion of the premium charged may be paid by	93
the political subdivision. The political subdivision shall	94
establish a manner or manners of payment for participants and the	95
political subdivision.	96

Sec. 505.60.  (A) As provided in this section and section	97
505.601 of the Revised Code, the board of township trustees of any	98
township may procure and pay all or any part of the cost of	99
insurance policies that may provide benefits for hospitalization,	100
surgical care, major medical care, disability, dental care, eye	101
care, medical care, hearing aids, prescription drugs, or sickness	102
and accident insurance, or a combination of any of the foregoing	103
types of insurance for township officers and employees. The board	104
of township trustees of any township may negotiate and contract	105
for the purchase of a policy of long-term care insurance for	106
township officers and employees pursuant to section 124.841 of the	107
Revised Code.	108

(B) If the board procures any insurance policies under this	109
section, the board shall provide uniform coverage under these	110
policies for township officers and full-time township employees	111
and their immediate dependents, and may provide coverage under	112
these policies for part-time township employees and their	113
immediate dependents, from the funds or budgets from which the	114
officers or employees are compensated for services, such policies	115
to be issued by an insurance company duly authorized to do	116
business in this state. Any township officer or employee may	117
refuse to accept the insurance coverage without affecting the	118
availability of such insurance coverage to other township officers	119
and employees.	120

The board may also contract for group health care services	121
with health insuring corporations holding certificates of	122
authority under Chapter 1751. of the Revised Code for township	123
officers and employees. If the board so contracts, it shall	124
provide uniform coverage under any such contracts for township	125
officers and full-time township employees and their immediate	126
dependents and may provide coverage under such contracts for	127
part-time township employees and their immediate dependents,	128
provided that each officer and employee so covered is permitted	129
to:	130

(1) Choose between a plan offered by an insurance company and	131
a plan offered by a health insuring corporation, and provided	132
further that the officer or employee pays any amount by which the	133
cost of the plan chosen exceeds the cost of the plan offered by	134
the board under this section;	135

(2) Change the choice made under division (B) of this section	136
at a time each year as determined in advance by the board.	137

An addition of a class or change of definition of coverage to	138
the plan offered by the board may be made at any time that it is	139
determined by the board to be in the best interest of the	140
township. If the total cost to the township of the revised plan	141
for any trustee's coverage does not exceed that cost under the	142
plan in effect during the prior policy year, the revision of the	143
plan does not cause an increase in that trustee's compensation.	144

(C) If any township officer or employee is denied coverage	145
under a health care plan procured under division (B) of this	146
section or if any township officer or employee elects not to	147
participate in the township's health care plan, the township may	148
reimburse the officer or employee for each out-of-pocket premium	149
that the officer or employee incurs for insurance policies	150
described in division (A) of this section that the officer or	151
employee otherwise obtains, but not to exceed an amount equal to	152
the average premium paid by the township for its officers and	153
employees under policies it procures under division (B) of this	154
section.	155

(D) The board may provide the benefits authorized under this	156
section, without competitive bidding, by contributing to a health	157
and welfare trust fund administered through or in conjunction with	158
a collective bargaining representative of the township employees.	159

The board may also provide the benefits described in this	160
section through an individual self-insurance program or a joint	161
self-insurance program as provided in section 9.833 of the Revised	162
Code.	163

(E) If a board of township trustees fails to pay one or more	164
premiums for a policy, contract, or plan of insurance or health	165
care services authorized by division (A) or (B) of this section	166
and the failure causes a lapse, cancellation, or other termination	167
of coverage under the policy, contract, or plan, it may reimburse	168
a township officer or employee for, or pay on behalf of the	169
officer or employee, any expenses incurred that would have been	170
covered under the policy, contract, or plan.	171

(F) As used in this section and section 505.601 of the	172
Revised Code:	173

(1) "Part-time township employee" means a township employee	174
who is hired with the expectation that the employee will work not	175
more than one thousand five hundred hours in any year.	176

(2) "Premium" does not include any deductible or health care	177
costs paid directly by a township officer or employee.	178

Section 2. That existing sections 124.84, 124.841, and 505.60	179
of the Revised Code are hereby repealed.	180