As Introduced

128th General Assembly Regular Session 2009-2010

H. B. No. 146

Representative Hagan 

Cosponsors: Representatives Harris, Harwood, Yuko, Letson, Murray, Boyd, Foley, Chandler, Skindell 

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A BILL

To amend sections 124.82 and 305.171 of the Revised

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Code to allow counties to participate in a state

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employee health insurance plan sponsored by the

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Department of Administrative Services.

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

Section 1. That sections 124.82 and 305.171 of the Revised	5
Code be amended to read as follows:	6

Sec. 124.82.  (A) Except as provided in division (D) of this	7
section, the department of administrative services, in	8
consultation with the superintendent of insurance, shall, in	9
accordance with competitive selection procedures of Chapter 125.	10
of the Revised Code, contract with an insurance company or a	11
health plan in combination with an insurance company, authorized	12
to do business in this state, for the issuance of a policy or	13
contract of health, medical, hospital, dental, or surgical	14
benefits, or any combination of those benefits, covering state	15
employees who are paid directly by warrant of the director of	16
budget and management, including elected state officials, and	17
county officers and employees that participate in the policy or	18
contract under section 305.171 of the Revised Code. The	19
department may fulfill its obligation under this division by	20
exercising its authority under division (A)(2) of section 124.81	21
of the Revised Code.	22

(B) The department may, in addition, in consultation with the	23
superintendent of insurance, negotiate and contract with health	24
insuring corporations holding a certificate of authority under	25
Chapter 1751. of the Revised Code, in their approved service areas	26
only, for issuance of a contract or contracts of health care	27
services, covering state employees who are paid directly by	28
warrant of the director of budget and management, including	29
elected state officials, and county officers and employees that	30
participate in the policy or contract under section 305.171 of the	31
Revised Code. The department may enter into contracts with one or	32
more insurance carriers or health plans to provide the same plan	33
of benefits, provided that:	34

(1) The amount of the premium or cost for such coverage	35
contributed by the state, for an individual or for an individual	36
and the individual's family, does not exceed that same amount of	37
the premium or cost contributed by the state under division (A) of	38
this section;	39

(2) The employee be permitted to exercise the option as to	40
which plan the employee will select under division (A) or (B) of	41
this section, at a time that shall be determined by the	42
department;	43

(3) The health insuring corporations do not refuse to accept	44
the employee, or the employee and the employee's family, if the	45
employee exercises the option to select care provided by the	46
corporations;	47

(4) The employee may choose participation in only one of the	48
plans sponsored by the department;	49

(5) The director of health examines and certifies to the	50
department that the quality and adequacy of care rendered by the	51
health insuring corporations meet at least the standards of care	52
provided by hospitals and physicians in that employee's community,	53
who would be providing such care as would be covered by a contract	54
awarded under division (A) of this section.	55

(C) All or any portion of the cost, premium, or charge for	56
the coverage in divisions (A) and (B) of this section may be paid	57
in such manner or combination of manners as the department	58
determines and may include the proration of health care costs,	59
premiums, or charges for part-time employees.	60

(D) Notwithstanding division (A) of this section, the	61
department may provide benefits equivalent to those that may be	62
paid under a policy or contract issued by an insurance company or	63
a health plan pursuant to division (A) of this section.	64

(E) This section does not prohibit the state office of	65
collective bargaining from entering into an agreement with an	66
employee representative for the purposes of providing fringe	67
benefits, including, but not limited to, hospitalization, surgical	68
care, major medical care, disability, dental care, vision care,	69
medical care, hearing aids, prescription drugs, group life	70
insurance, sickness and accident insurance, group legal services	71
or other benefits, or any combination of those benefits, to	72
employees paid directly by warrant of the director of budget and	73
management through a jointly administered trust fund. The	74
employer's contribution for the cost of the benefit care shall be	75
mutually agreed to in the collectively bargained agreement. The	76
amount, type, and structure of fringe benefits provided under this	77
division is subject to the determination of the board of trustees	78
of the jointly administered trust fund. Notwithstanding any other	79
provision of the Revised Code, competitive bidding does not apply	80
to the purchase of fringe benefits for employees under this	81
division when those benefits are provided through a jointly	82
administered trust fund.	83

(F) Members of state boards or commissions may be covered by	84
any policy, contract, or plan of benefits or services described in	85
division (A) or (B) of this section. Board or commission members	86
who are appointed for a fixed term and who are compensated on a	87
per meeting basis, or paid only for expenses, or receive a	88
combination of per diem payments and expenses shall pay the entire	89
amount of the premiums, costs, or charges for that coverage.	90

(G) The director of administrative services shall adopt by	91
rule procedures for county officers and employees' participation	92
in the state policy or contract selected by the department	93
pursuant to this section, including method of application, payment	94
of benefits, and transfer of money.	95

Sec. 305.171.  (A) The board of county commissioners of any	96
county may contract for, purchase, or otherwise procure and pay	97
all or any part of the cost of group insurance policies that may	98
provide benefits including, but not limited to, hospitalization,	99
surgical care, major medical care, disability, dental care, eye	100
care, medical care, hearing aids, or prescription drugs, and that	101
may provide sickness and accident insurance, group legal services,	102
or group life insurance, or a combination of any of the foregoing	103
types of insurance or coverage, for county officers and employees	104
and their immediate dependents from the funds or budgets from	105
which the county officers or employees are compensated for	106
services, issued by an insurance company.	107

(B) The board of county commissioners also may negotiate and	108
contract for any plan or plans of health care services with health	109
insuring corporations holding a certificate of authority under	110
Chapter 1751. of the Revised Code, provided that each county	111
officer or employee shall be permitted to do both of the	112
following:	113

(1) Exercise an option between a plan offered by an insurance	114
company and a plan or plans offered by health insuring	115
corporations under this division, on the condition that the county	116
officer or employee shall pay any amount by which the cost of the	117
plan chosen by the county officer or employee pursuant to this	118
division exceeds the cost of the plan offered under division (A)	119
of this section;	120

(2) Change from one of the plans to another at a time each	121
year as determined by the board.	122

(C) Section 307.86 of the Revised Code does not apply to the	123
purchase of benefits for county officers or employees under	124
divisions (A) and (B) of this section when those benefits are	125
provided through a jointly administered health and welfare trust	126
fund in which the county or contracting authority and a collective	127
bargaining representative of the county employees or contracting	128
authority agree to participate.	129

(D) The board of trustees of a jointly administered trust	130
fund that receives contributions pursuant to collective bargaining	131
agreements entered into between the board of county commissioners	132
of any county and a collective bargaining representative of the	133
employees of the county may provide for self-insurance of all risk	134
in the provision of fringe benefits, and may provide through the	135
self-insurance method specific fringe benefits as authorized by	136
the rules of the board of trustees of the jointly administered	137
trust fund. The fringe benefits may include, but are not limited	138
to, hospitalization, surgical care, major medical care,	139
disability, dental care, vision care, medical care, hearing aids,	140
prescription drugs, group life insurance, sickness and accident	141
insurance, group legal services, or a combination of any of the	142
foregoing types of insurance or coverage, for county employees and	143
their dependents.	144

(E) The board of county commissioners may provide the	145
benefits described in divisions (A) to (D) of this section through	146
an individual self-insurance program or a joint self-insurance	147
program as provided in section 9.833 of the Revised Code or	148
through a plan sponsored by the department of administrative	149
services under section 124.82 of the Revised Code.	150

(F) When a board of county commissioners offers health	151
benefits authorized under this section to a county officer or	152
employee, the board may offer the benefits through a cafeteria	153
plan meeting the requirements of section 125 of the "Internal	154
Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C.A. 125, as	155
amended, and, as part of that plan, may offer the county officer	156
or employee the option of receiving a cash payment in any form	157
permissible under such cafeteria plans. A cash payment made to a	158
county officer or employee under this division shall not exceed	159
twenty-five per cent of the cost of premiums or payments that	160
otherwise would be paid by the board for benefits for the county	161
officer or employee under a policy or plan.	162

(G) The board of county commissioners may establish a policy	163
authorizing any county appointing authority to make a cash payment	164
to any county officer or employee in lieu of providing a benefit	165
authorized under this section if the county officer or employee	166
elects to take the cash payment instead of the offered benefit. A	167
cash payment made to a county officer or employee under this	168
division shall not exceed twenty-five per cent of the cost of	169
premiums or payments that otherwise would be paid by the board for	170
benefits for the county officer or employee under an offered	171
policy or plan.	172

(H) No cash payment in lieu of a health benefit shall be made	173
to a county officer or employee under division (F) or (G) of this	174
section unless the county officer or employee signs a statement	175
affirming that the county officer or employee is covered under	176
another health insurance or health care policy, contract, or plan,	177
and setting forth the name of the employer, if any, that sponsors	178
the coverage, the name of the carrier that provides the coverage,	179
and the identifying number of the policy, contract, or plan.	180

(I) The legislative authority of a county-operated municipal	181
court, after consultation with the judges, or the clerk and deputy	182
clerks, of the municipal court, shall negotiate and contract for,	183
purchase, or otherwise procure, and pay the costs, premiums, or	184
charges for, group health care coverage for the judges, and group	185
health care coverage for the clerk and deputy clerks, in	186
accordance with section 1901.111 or 1901.312 of the Revised Code.	187

(J) As used in this section:

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(1) "County officer or employee" includes, but is not limited	189
to, a member or employee of the county board of elections.	190

(2) "County-operated municipal court" and "legislative	191
authority" have the same meanings as in section 1901.03 of the	192
Revised Code.	193

(3) "Health care coverage" has the same meaning as in section	194
1901.111 of the Revised Code.	195

Section 2. That existing sections 124.82 and 305.171 of the	196
Revised Code are hereby repealed.	197