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H. B. No. 185As Reported by the House State Government CommitteeAs Reported by the House State Government Committee
125th General Assembly | Regular Session | 2003-2004 |
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REPRESENTATIVES Schmidt, Allen, Setzer, Seitz, Aslanides, C. Evans, Olman, Schneider, Schaffer, Raga, Webster, Buehrer, Skindell
A BILL
To amend sections 124.84, 124.841, and 505.60 of the
Revised Code to permit the state and political
subdivisions to pay some or all of the premium for
their employees' long-term care insurance.
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
Revised Code be amended to read as follows:
Sec. 124.84. (A) The department of administrative
services,
in consultation with the superintendent of insurance
and subject
to division (D) of this section, shall negotiate and
contract with
one or more insurance companies or
health
insuring corporations
authorized to operate or do business in this state
for the
purchase of a
policy of long-term care insurance covering all
state employees
who are paid directly by warrant of the auditor of
state,
including elected state officials. Any policy purchased
under
this division shall be negotiated and entered into in
accordance
with the competitive selection procedures specified in
Chapter 125. of the Revised Code. As used in this section,
"long-term care insurance" has the same meaning as in section
3923.41 of the Revised Code. (B) Any elected state official or state employee paid
directly by warrant of the auditor of state may elect to
participate in any long-term care insurance policy purchased
under
division (A) of this section
and any official or employee
who does
so shall be responsible for paying the entire premium
charged,
which shall be deducted from the official's or
employee's salary
or wage and be
remitted by the auditor of state directly to the
insurance
company or health insuring corporation. All or any
portion of the premium charged may be paid by the state.
Participation in the policy may
include the dependents and family
members of the elected state
official or state employee. If a participant in a long-term care insurance policy
leaves
employment, the participant and
the participant's dependents and
family members
may, at their election, continue to participate in
a policy
established under this section
in the same manner as if
the
participant had not left employment. The manner of payment
and the portion of premium charged the participant, dependent, and family member shall be
established pursuant to division (E) of this section. (C) Any long-term care insurance policy purchased under
this
section or section 124.841 or 145.581 of the Revised Code
shall
provide for all of the following with respect to the
premiums
charged for the policy: (1) They shall be set at the entry age of the official or
employee when first covered by the policy and shall not increase
except as a class during coverage under the policy. (2) They shall be based on the class of all officials or
employees covered by the policy. (3) They shall continue, pursuant to section 145.581 of
the
Revised Code, after the retirement of the official or
employee who
is covered under the policy, at the rate in effect
on the date of
the official's or employee's retirement. (D) Prior to entering into a contract with an insurance
company or health insuring corporation for the purchase of a
long-term
care
insurance policy under this section, the department
shall request
the superintendent of insurance to certify the
financial
condition of the company or corporation. The
department
shall not enter into the contract if, according to
that
certification, the company or corporation is insolvent, is
determined by the superintendent to be
potentially
unable to
fulfill its contractual obligations, or is placed under
an order
of rehabilitation or conservation by a court of
competent
jurisdiction or under an order of supervision by the
superintendent. (E) The department shall adopt rules in accordance with
section 111.15 of the Revised Code governing long-term care
insurance purchased under this section.
The rules shall
establish
methods of payment for participation under this
section, which may
include establishment of a payroll deduction
plan
All or any
portion of the premium charged the participants, dependents, and family members shall be paid in such manner or
combination of manners as the department determines.
Sec. 124.841. (A) As used in this section: (1) "Long-term care insurance" has the same meaning as in
section 3923.41 of the Revised Code. (2) "Political subdivision" has the same meaning as in
section 9.833 of the Revised Code. (B) Any political subdivision may negotiate with and may
contract with one or more insurance companies or
health insuring
corporations authorized to operate or do business in this
state
for the
purchase of a policy of long-term care insurance covering
all elected
officials
and employees of the political subdivision.
The contract may be
entered into without competitive bidding. Any
elected official
or employee of a political subdivision may elect
to participate
in any long-term care insurance policy that the
political
subdivision purchases under this division
and any
official or
employee who does so shall be responsible for paying
the entire
premium charged, which shall be deducted from the
official's or
employee's salary or wage and be remitted directly
to the insurance
company or health insuring corporation. (C) Any long-term care insurance policy entered into under
this section is subject to division (C) of section 124.84 of the
Revised Code.
(D) All or any portion of the premium charged may be paid by
the political subdivision. The political subdivision shall
establish a manner or manners of payment for participants and the
political subdivision.
Sec. 505.60. (A) As provided in this section and section
505.601 of the Revised Code, the board of township trustees of any
township may procure and pay all or any part of the cost of
insurance policies that may provide benefits for hospitalization,
surgical care, major medical care, disability, dental care, eye
care, medical care, hearing aids, prescription drugs, or sickness
and accident insurance, or a combination of any of the foregoing
types of insurance for township officers and employees.
The board
of township trustees of any township may negotiate and contract
for the purchase of a policy of long-term care insurance for
township officers and employees pursuant to section 124.841 of the
Revised Code. (B) If the board procures any insurance
policies under this
section, the board shall
provide uniform coverage under these
policies for township
officers and full-time township employees
and their immediate
dependents, and may provide coverage under
these policies for
part-time township employees and their
immediate dependents, from
the funds or budgets from which the
officers or employees are
compensated for services, such policies
to be
issued by an insurance company duly authorized
to do
business in this state. Any township officer or employee
may
refuse to accept the insurance coverage without affecting the
availability of such insurance coverage to other township
officers
and employees. The board may also contract for group health
care services
with health insuring corporations
holding certificates of
authority under Chapter
1751. of the Revised Code
for township
officers and employees. If the board so contracts,
it shall
provide uniform coverage under any such contracts for
township
officers and full-time township employees and their
immediate
dependents and may provide coverage under such
contracts for
part-time township employees and their immediate
dependents,
provided that each officer and employee so covered is
permitted
to: (1) Choose between a plan offered by an insurance company
and a plan
offered by a health insuring corporation, and provided
further that the
officer or employee pays any amount by which the
cost of the
plan chosen
exceeds the cost of the plan offered by
the board under this
section; (2) Change the choice made under
division (B) of this
section
at a time each year as determined in advance by the board. An addition of a class or change of definition of coverage
to
the plan offered by the board may be made at any time that it
is
determined by the board to be in the best interest of the
township. If the total cost to the township of the revised plan
for any trustee's coverage does not exceed that cost under the
plan in effect during the prior policy year, the revision of the
plan does not cause an increase in that trustee's compensation. (C) If any township officer or employee is denied coverage
under
a health care plan procured under division (B) of this
section or if
any township officer or employee elects not to
participate in the township's
health care plan, the township
may
reimburse the officer or employee for each out-of-pocket premium
that the
officer or employee incurs for insurance
policies
described in division (A) of this section that the
officer or
employee otherwise obtains, but not to exceed an amount equal to
the average premium
paid by the township for its officers and
employees under policies it procures
under
division (B) of this
section.
(D) The board may provide the benefits authorized under this
section, without competitive bidding, by contributing to a health
and welfare trust fund administered through or in conjunction
with
a collective bargaining representative of the township
employees. The board may also provide the benefits described in this
section through an individual self-insurance program or a joint
self-insurance program as provided in section 9.833 of the
Revised
Code. (E) If a board of township trustees fails to pay one or
more
premiums for a policy, contract, or plan of insurance or
health
care services authorized by division (A) or (B) of this
section
and the failure causes a lapse, cancellation, or other
termination
of coverage under the policy, contract, or plan, it
may reimburse
a township officer or employee for, or pay on
behalf of the
officer or employee, any expenses incurred that
would have been
covered under the policy, contract, or plan. (F) As used in this section and
section 505.601 of the
Revised Code: (1) "Part-time township employee" means a township employee
who is
hired with the expectation that
the employee will work not
more than one thousand five hundred hours in any
year. (2) "Premium" does not include any deductible or health care
costs paid directly by a township officer or employee.
Section 2. That existing sections 124.84, 124.841, and 505.60
of the Revised Code are hereby repealed.
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