To enact section 5902.20 of the Revised Code to create the Ohio Veterans Health Care System.

Section 1.  That section 5902.20 of the Revised Code be enacted to read as follows:

Sec. 5902.20.  (A) As used in this section:

"Uniformed services" means the armed forces of the United States, the army national guard and the air national guard when engaged in active duty for training, inactive duty for training, or full-time national guard duty, the commissioned corps of the public health service, and any other category of persons designated by the president in time of war or national emergency.

"Veteran" means a person who served in the uniformed services or a reserve component of the armed forces of the United States, and who was discharged or released therefrom under conditions other than dishonorable.

(B) There is the Ohio veterans health care system to provide eligible veterans with comprehensive health care services, including health, medical, hospital, dental, and surgical benefits. The program is to provide veterans who are eligible for health care benefits under the medicaid program, instead with health care insurance through the Ohio veterans health care system. When the Ohio veterans health care system becomes operational, veterans receiving health care benefits under the medicaid program instead shall be transferred to and enrolled in the Ohio veterans health care system.

(C) The director of veterans services, in consultation with the superintendent of insurance, the director of administrative services, and the director of job and family services, shall select the structure of the system from one of the following three options:

(1) A state subsidized comprehensive health care plan provided by an insurance company authorized to do business in this state.

(2) A state subsidized high deductible health care plan provided by an insurance company authorized to do business in this state, to be provided in conjunction with an obligation for the state to make periodic direct deposits into an individual health savings account, established by the veteran, which qualifies under section 223 of the Internal Revenue Code.

(3) A voucher program that grants subsidies to eligible veterans for purchasing private health insurance under the Patient Protection and Affordable Care Act, Pub. L. No. 111-148, 124 Stat. 119, through its health insurance marketplace exchange to the extent not otherwise subsidized under the Patient Protection and Affordable Care Act.

The director of veterans services, in consultation with the director of administrative services and in accordance with the competitive selection procedures of Chapter 125. of the Revised Code, may contract with an insurance company or a health plan in combination with an insurance company, authorized to do business in this state, for the issuance of a policy or contract to cover veterans under the Ohio veterans health care system.

(D) The director of veterans services in consultation with the superintendent of insurance, the director of administrative services, and the director of job and family services, shall adopt rules under Chapter 119. of the Revised Code that specify the terms and conditions of the Ohio veterans health care system, including, but not limited to:

(1) Eligibility requirements;

(2) Enrollment procedures;

(3) Covered services;

(4) Covered prescriptions;

(5) Deductibles, copays, and maximum out-of-pocket expenses;

(6) Any other terms and conditions necessary to implement and manage the system.

The rule specifying eligibility requirements shall include a requirement that, in order to be eligible to receive benefits through the Ohio veterans health care system, a person must be a veteran, who is eligible to receive health care benefits under the medicaid program, and who is a resident of this state.