To enact section 124.824 of the Revised Code to require the Department of Administrative Services to create a health insurance program that allows municipal corporations, small employers, and nonprofit corporations or associations to purchase for their employees the same policies or contracts provided to state employees.

Section 1. That section 124.824 of the Revised Code be enacted to read as follows:

Sec. 124.824. (A) As used in this section:

(1) "Eligible employee" means an employee employed in this state who works a normal work week of twenty-five or more hours and at least forty weeks per year. "Eligible employee" does not include a temporary or substitute employee, or a seasonal employee who works only part of the calendar year on the basis of natural or suitable times or circumstances.

(2) "Small employer" means an employer who employed an average of not more than five hundred eligible employees in this state on business days during the preceding calendar year and who employs not more than five hundred eligible employees on the first day of the plan year.

(B) Not later than six months after the effective date of this section, the department of administrative services shall implement and administer a health insurance program whereby small employers, nonprofit corporations or associations, and legislative authorities of municipal corporations may purchase from the department insurance coverage for their eligible employees under policies or contracts for which the department has contracted under division (A) or (B) of section 124.82 of the Revised Code. The department shall charge small employers, nonprofit corporations or associations, and legislative authorities of municipal corporations the entire amount of the premiums or costs for coverage and, in addition, may charge a fee for administering the program. The department shall ensure that the program is actuarially sound.

(C) Nothing in this section prohibits a small employer, nonprofit corporation or association, or legislative authority of a municipal corporation from charging eligible employees for all or any portion of the costs of coverage purchased under this section.

(D) The director of administrative services shall adopt rules under Chapter 119. of the Revised Code for implementing and administering the health insurance program required by this section. The rules shall include any provisions the director considers necessary to carry out the program, including rules that establish procedures by which small employers, nonprofit corporations or associations, and legislative authorities of municipal corporations may apply to purchase coverage under this section. If the department charges an administrative fee under this section, the rules also shall prescribe a method for determining the amount of the fee to be charged.