To enact section 124.823 of the Revised Code to give state employees the option of choosing medical savings accounts for their health care coverage.

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

Sec. 124.823. (A) THE DEPARTMENT OF ADMINISTRATIVE SERVICES SHALL INCLUDE MEDICAL SAVINGS ACCOUNTS AS PART OF ANY PACKAGE OF HEALTH CARE BENEFIT OPTIONS OFFERED TO STATE EMPLOYEES WHO ARE PAID DIRECTLY BY WARRANT OF THE AUDITOR OF STATE, INCLUDING ELECTED STATE OFFICIALS. THE DEPARTMENT SHALL ESTABLISH THE ACCOUNTS IN ACCORDANCE WITH SECTIONS 3924.61 TO 3924.74 OF THE REVISED CODE. THE DEPARTMENT SHALL MAKE BOTH INDIVIDUAL AND FAMILY COVERAGE AVAILABLE THROUGH THE ACCOUNTS.

(B) A STATE EMPLOYEE WHO CHOOSES THE MEDICAL SAVINGS ACCOUNT OPTION SHALL HAVE ANY STATE HEALTH, MEDICAL, HOSPITAL, DENTAL, SURGICAL, AND VISION BENEFITS FOR WHICH THE EMPLOYEE IS ELIGIBLE PROVIDED THROUGH THE MEDICAL SAVINGS ACCOUNT. THE DEPARTMENT, UNDER SECTION 124.81 OR 124.82 OF THE REVISED CODE, SHALL CONTRACT FOR OR OTHERWISE PROVIDE A HIGH-DEDUCTIBLE POLICY OR CONTRACT THROUGH WHICH THOSE BENEFITS CAN BE PAID. PURSUANT TO DIVISION (A) OF SECTION 3924.62 OF THE REVISED CODE, ALL STATE EMPLOYEES CHOOSING THE MEDICAL SAVINGS ACCOUNT OPTION SHALL PARTICIPATE IN THAT POLICY OR CONTRACT. THE ANNUAL AMOUNT THE STATE PAYS FOR PREMIUMS UNDER THE POLICY OR CONTRACT FOR AN EMPLOYEE SHALL NOT EXCEED ONE-HALF OF THE ANNUAL AMOUNT THE STATE DEPOSITS TO THE EMPLOYEE'S MEDICAL SAVINGS ACCOUNT. THE AMOUNT OF THE ANNUAL DEDUCTIBLE UNDER THE POLICY OR CONTRACT FOR AN EMPLOYEE SHALL NOT BE LESS THAN THE ANNUAL AMOUNT THE STATE DEPOSITS TO THE EMPLOYEE'S MEDICAL SAVINGS ACCOUNT.

(C) PURSUANT TO SECTION 3924.64 OF THE REVISED CODE, THE DEPARTMENT SHALL DESIGNATE THE ADMINISTRATOR OF A MEDICAL SAVINGS ACCOUNT AT THE TIME THE ACCOUNT IS OPENED. HOWEVER, THE EMPLOYEE FOR WHOM THE ACCOUNT IS OPENED MAY DESIGNATE A DIFFERENT ADMINISTRATOR AT THAT TIME. IF THE EMPLOYEE DESIGNATES A DIFFERENT ADMINISTRATOR, THE DEPARTMENT SHALL OPEN THE ACCOUNT IN ACCORDANCE WITH THE EMPLOYEE'S DESIGNATION.