Bill Text: OH HB412 | 2011-2012 | 129th General Assembly | Introduced
Bill Title: To establish the Ohio Health Benefit Exchange Agency and to establish the Ohio Health Benefit Exchange Program consisting of an exchange for individual coverage and a Small Business Health Options Program.
Spectrum: Partisan Bill (Democrat 16-0)
Status: (Introduced - Dead) 2012-01-11 - To Health & Aging [HB412 Detail]
Download: Ohio-2011-HB412-Introduced.html
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Representatives Antonio, Carney
Cosponsors:
Representatives Pillich, Murray, Fedor, Foley, Boyd, Goyal, Garland, Winburn, Hagan, R., Stinziano, Yuko, Ramos, Williams, Celeste
To amend sections 124.14 and 3924.01 and to enact | 1 |
sections 3965.01 to 3965.14 of the Revised Code to | 2 |
establish the Ohio Health Benefit Exchange Agency | 3 |
and to establish the Ohio Health Benefit Exchange | 4 |
Program consisting of an exchange for individual | 5 |
coverage and a Small Business Health Options | 6 |
Program. | 7 |
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 124.14 and 3924.01 be amended and | 8 |
sections 3965.01, 3965.02, 3965.03, 3965.04, 3965.05, 3965.06, | 9 |
3965.07, 3965.08, 3965.09, 3965.10, 3965.11, 3965.12, 3965.13, and | 10 |
3965.14 of the Revised Code be enacted to read as follows: | 11 |
Sec. 124.14. (A)(1) The director of administrative services | 12 |
shall establish, and may modify or rescind, by rule, a job | 13 |
classification plan for all positions, offices, and employments | 14 |
the salaries of which are paid in whole or in part by the state. | 15 |
The director shall group jobs within a classification so that the | 16 |
positions are similar enough in duties and responsibilities to be | 17 |
described by the same title, to have the same pay assigned with | 18 |
equity, and to have the same qualifications for selection applied. | 19 |
The director shall, by rule, assign a classification title to each | 20 |
classification within the classification plan. However, the | 21 |
director shall consider in establishing classifications, including | 22 |
classifications with parenthetical titles, and assigning pay | 23 |
ranges such factors as duties performed only on one shift, special | 24 |
skills in short supply in the labor market, recruitment problems, | 25 |
separation rates, comparative salary rates, the amount of training | 26 |
required, and other conditions affecting employment. The director | 27 |
shall describe the duties and responsibilities of the class, | 28 |
establish the qualifications for being employed in each position | 29 |
in the class, and file with the secretary of state a copy of | 30 |
specifications for all of the classifications. The director shall | 31 |
file new, additional, or revised specifications with the secretary | 32 |
of state before they are used. | 33 |
The director shall, by rule, assign each classification, | 34 |
either on a statewide basis or in particular counties or state | 35 |
institutions, to a pay range established under section 124.15 or | 36 |
section 124.152 of the Revised Code. The director may assign a | 37 |
classification to a pay range on a temporary basis for a period of | 38 |
six months. The director may establish, by rule adopted under | 39 |
Chapter 119. of the Revised Code, experimental classification | 40 |
plans for some or all employees paid directly by warrant of the | 41 |
director of budget and management. The rule shall include | 42 |
specifications for each classification within the plan and shall | 43 |
specifically address compensation ranges, and methods for | 44 |
advancing within the ranges, for the classifications, which may be | 45 |
assigned to pay ranges other than the pay ranges established under | 46 |
section 124.15 or 124.152 of the Revised Code. | 47 |
(2) The director of administrative services may reassign to a | 48 |
proper classification those positions that have been assigned to | 49 |
an improper classification. If the compensation of an employee in | 50 |
such a reassigned position exceeds the maximum rate of pay for the | 51 |
employee's new classification, the employee shall be placed in pay | 52 |
step X and shall not receive an increase in compensation until the | 53 |
maximum rate of pay for that classification exceeds the employee's | 54 |
compensation. | 55 |
(3) The director may reassign an exempt employee, as defined | 56 |
in section 124.152 of the Revised Code, to a bargaining unit | 57 |
classification if the director determines that the bargaining unit | 58 |
classification is the proper classification for that employee. | 59 |
Notwithstanding Chapter 4117. of the Revised Code or instruments | 60 |
and contracts negotiated under it, these placements are at the | 61 |
director's discretion. | 62 |
(4) The director shall, by rule, assign related | 63 |
classifications, which form a career progression, to a | 64 |
classification series. The director shall, by rule, assign each | 65 |
classification in the classification plan a five-digit number, the | 66 |
first four digits of which shall denote the classification series | 67 |
to which the classification is assigned. When a career progression | 68 |
encompasses more than ten classifications, the director shall, by | 69 |
rule, identify the additional classifications belonging to a | 70 |
classification series. The additional classifications shall be | 71 |
part of the classification series, notwithstanding the fact that | 72 |
the first four digits of the number assigned to the additional | 73 |
classifications do not correspond to the first four digits of the | 74 |
numbers assigned to other classifications in the classification | 75 |
series. | 76 |
(5) The director may establish, modify, or rescind a | 77 |
classification plan for county agencies that elect not to use the | 78 |
services and facilities of a county personnel department. The | 79 |
director shall establish any such classification plan by means of | 80 |
rules adopted under Chapter 119. of the Revised Code. The rules | 81 |
shall include a methodology for the establishment of titles unique | 82 |
to county agencies, the use of state classification titles and | 83 |
classification specifications for common positions, the criteria | 84 |
for a county to meet in establishing its own classification plan, | 85 |
and the establishment of what constitutes a classification series | 86 |
for county agencies. The director may assess a county agency that | 87 |
chooses to use the classification plan a usage fee the director | 88 |
determines. All usage fees the department of administrative | 89 |
services receives shall be paid into the state treasury to the | 90 |
credit of the human resources fund created in section 124.07 of | 91 |
the Revised Code. | 92 |
(B) Division (A) of this section and sections 124.15 and | 93 |
124.152 of the Revised Code do not apply to the following persons, | 94 |
positions, offices, and employments: | 95 |
(1) Elected officials; | 96 |
(2) Legislative employees, employees of the legislative | 97 |
service commission, employees in the office of the governor, | 98 |
employees who are in the unclassified civil service and exempt | 99 |
from collective bargaining coverage in the office of the secretary | 100 |
of state, auditor of state, treasurer of state, and attorney | 101 |
general, and employees of the supreme court; | 102 |
(3) Employees of a county children services board that | 103 |
establishes compensation rates under section 5153.12 of the | 104 |
Revised Code; | 105 |
(4) Any position for which the authority to determine | 106 |
compensation is given by law to another individual or entity; | 107 |
(5) Employees of the bureau of workers' compensation whose | 108 |
compensation the administrator of workers' compensation | 109 |
establishes under division (B) of section 4121.121 of the Revised | 110 |
Code; | 111 |
(6) Employees of the Ohio health benefit exchange program | 112 |
whose compensation the board of the Ohio health benefit exchange | 113 |
agency establishes under division (H) of section 3965.03 of the | 114 |
Revised Code. | 115 |
(C) The director may employ a consulting agency to aid and | 116 |
assist the director in carrying out this section. | 117 |
(D)(1) When the director proposes to modify a classification | 118 |
or the assignment of classes to appropriate pay ranges, the | 119 |
director shall send written notice of the proposed rule to the | 120 |
appointing authorities of the affected employees thirty days | 121 |
before a hearing on the proposed rule. The appointing authorities | 122 |
shall notify the affected employees regarding the proposed rule. | 123 |
The director also shall send those appointing authorities notice | 124 |
of any final rule that is adopted within ten days after adoption. | 125 |
(2) When the director proposes to reclassify any employee so | 126 |
that the employee is adversely affected, the director shall give | 127 |
to the employee affected and to the employee's appointing | 128 |
authority a written notice setting forth the proposed new | 129 |
classification, pay range, and salary. Upon the request of any | 130 |
classified employee who is not serving in a probationary period, | 131 |
the director shall perform a job audit to review the | 132 |
classification of the employee's position to determine whether the | 133 |
position is properly classified. The director shall give to the | 134 |
employee affected and to the employee's appointing authority a | 135 |
written notice of the director's determination whether or not to | 136 |
reclassify the position or to reassign the employee to another | 137 |
classification. An employee or appointing authority desiring a | 138 |
hearing shall file a written request for the hearing with the | 139 |
state personnel board of review within thirty days after receiving | 140 |
the notice. The board shall set the matter for a hearing and | 141 |
notify the employee and appointing authority of the time and place | 142 |
of the hearing. The employee, the appointing authority, or any | 143 |
authorized representative of the employee who wishes to submit | 144 |
facts for the consideration of the board shall be afforded | 145 |
reasonable opportunity to do so. After the hearing, the board | 146 |
shall consider anew the reclassification and may order the | 147 |
reclassification of the employee and require the director to | 148 |
assign the employee to such appropriate classification as the | 149 |
facts and evidence warrant. As provided in division (A)(1) of | 150 |
section 124.03 of the Revised Code, the board may determine the | 151 |
most appropriate classification for the position of any employee | 152 |
coming before the board, with or without a job audit. The board | 153 |
shall disallow any reclassification or reassignment classification | 154 |
of any employee when it finds that changes have been made in the | 155 |
duties and responsibilities of any particular employee for | 156 |
political, religious, or other unjust reasons. | 157 |
(E)(1) Employees of each county department of job and family | 158 |
services shall be paid a salary or wage established by the board | 159 |
of county commissioners. The provisions of section 124.18 of the | 160 |
Revised Code concerning the standard work week apply to employees | 161 |
of county departments of job and family services. A board of | 162 |
county commissioners may do either of the following: | 163 |
(a) Notwithstanding any other section of the Revised Code, | 164 |
supplement the sick leave, vacation leave, personal leave, and | 165 |
other benefits of any employee of the county department of job and | 166 |
family services of that county, if the employee is eligible for | 167 |
the supplement under a written policy providing for the | 168 |
supplement; | 169 |
(b) Notwithstanding any other section of the Revised Code, | 170 |
establish alternative schedules of sick leave, vacation leave, | 171 |
personal leave, or other benefits for employees not inconsistent | 172 |
with the provisions of a collective bargaining agreement covering | 173 |
the affected employees. | 174 |
(2) Division (E)(1) of this section does not apply to | 175 |
employees for whom the state employment relations board | 176 |
establishes appropriate bargaining units pursuant to section | 177 |
4117.06 of the Revised Code, except in either of the following | 178 |
situations: | 179 |
(a) The employees for whom the state employment relations | 180 |
board establishes appropriate bargaining units elect no | 181 |
representative in a board-conducted representation election. | 182 |
(b) After the state employment relations board establishes | 183 |
appropriate bargaining units for such employees, all employee | 184 |
organizations withdraw from a representation election. | 185 |
(F)(1) Notwithstanding any contrary provision of sections | 186 |
124.01 to 124.64 of the Revised Code, the board of trustees of | 187 |
each state university or college, as defined in section 3345.12 of | 188 |
the Revised Code, shall carry out all matters of governance | 189 |
involving the officers and employees of the university or college, | 190 |
including, but not limited to, the powers, duties, and functions | 191 |
of the department of administrative services and the director of | 192 |
administrative services specified in this chapter. Officers and | 193 |
employees of a state university or college shall have the right of | 194 |
appeal to the state personnel board of review as provided in this | 195 |
chapter. | 196 |
(2) Each board of trustees shall adopt rules under section | 197 |
111.15 of the Revised Code to carry out the matters of governance | 198 |
described in division (F)(1) of this section. Until the board of | 199 |
trustees adopts those rules, a state university or college shall | 200 |
continue to operate pursuant to the applicable rules adopted by | 201 |
the director of administrative services under this chapter. | 202 |
(G)(1) Each board of county commissioners may, by a | 203 |
resolution adopted by a majority of its members, establish a | 204 |
county personnel department to exercise the powers, duties, and | 205 |
functions specified in division (G) of this section. As used in | 206 |
division (G) of this section, "county personnel department" means | 207 |
a county personnel department established by a board of county | 208 |
commissioners under division (G)(1) of this section. | 209 |
(2)(a) Each board of county commissioners, by a resolution | 210 |
adopted by a majority of its members, may designate the county | 211 |
personnel department of the county to exercise the powers, duties, | 212 |
and functions specified in sections 124.01 to 124.64 and Chapter | 213 |
325. of the Revised Code with regard to employees in the service | 214 |
of the county, except for the powers and duties of the state | 215 |
personnel board of review, which powers and duties shall not be | 216 |
construed as having been modified or diminished in any manner by | 217 |
division (G)(2) of this section, with respect to the employees for | 218 |
whom the board of county commissioners is the appointing authority | 219 |
or co-appointing authority. | 220 |
(b) Nothing in division (G)(2) of this section shall be | 221 |
construed to limit the right of any employee who possesses the | 222 |
right of appeal to the state personnel board of review to continue | 223 |
to possess that right of appeal. | 224 |
(c) Any board of county commissioners that has established a | 225 |
county personnel department may contract with the department of | 226 |
administrative services, another political subdivision, or an | 227 |
appropriate public or private entity to provide competitive | 228 |
testing services or other appropriate services. | 229 |
(3) After the county personnel department of a county has | 230 |
been established as described in division (G)(2) of this section, | 231 |
any elected official, board, agency, or other appointing authority | 232 |
of that county, upon written notification to the county personnel | 233 |
department, may elect to use the services and facilities of the | 234 |
county personnel department. Upon receipt of the notification by | 235 |
the county personnel department, the county personnel department | 236 |
shall exercise the powers, duties, and functions as described in | 237 |
division (G)(2) of this section with respect to the employees of | 238 |
that elected official, board, agency, or other appointing | 239 |
authority. | 240 |
(4) Each board of county commissioners, by a resolution | 241 |
adopted by a majority of its members, may disband the county | 242 |
personnel department. | 243 |
(5) Any elected official, board, agency, or appointing | 244 |
authority of a county may end its involvement with a county | 245 |
personnel department upon actual receipt by the department of a | 246 |
certified copy of the notification that contains the decision to | 247 |
no longer participate. | 248 |
(6) The director of administrative services may, by rule | 249 |
adopted in accordance with Chapter 119. of the Revised Code, | 250 |
prescribe criteria and procedures for the following: | 251 |
(a) A requirement that each county personnel department, in | 252 |
carrying out its duties, adhere to merit system principles with | 253 |
regard to employees of county departments of job and family | 254 |
services, child support enforcement agencies, and public child | 255 |
welfare agencies so that there is no threatened loss of federal | 256 |
funding for these agencies, and a requirement that the county be | 257 |
financially liable to the state for any loss of federal funds due | 258 |
to the action or inaction of the county personnel department. The | 259 |
costs associated with audits conducted to monitor compliance with | 260 |
division (G)(6)(a) of this section shall be reimbursed to the | 261 |
department of administrative services as determined by the | 262 |
director. All money the department receives for these audits shall | 263 |
be paid into the state treasury to the credit of the human | 264 |
resources fund created in section 124.07 of the Revised Code. | 265 |
(b) Authorization for the director of administrative services | 266 |
to conduct periodic audits and reviews of county personnel | 267 |
departments to guarantee the uniform application of the powers, | 268 |
duties, and functions exercised pursuant to division (G)(2)(a) of | 269 |
this section. The costs of the audits and reviews shall be | 270 |
reimbursed to the department of administrative services as | 271 |
determined by the director by the county for which the services | 272 |
are performed. All money the department receives shall be paid | 273 |
into the state treasury to the credit of the human resources fund | 274 |
created in section 124.07 of the Revised Code. | 275 |
(H) The director of administrative services shall establish | 276 |
the rate and method of compensation for all employees who are paid | 277 |
directly by warrant of the director of budget and management and | 278 |
who are serving in positions that the director of administrative | 279 |
services has determined impracticable to include in the state job | 280 |
classification plan. This division does not apply to elected | 281 |
officials, legislative employees, employees of the legislative | 282 |
service commission, employees who are in the unclassified civil | 283 |
service and exempt from collective bargaining coverage in the | 284 |
office of the secretary of state, auditor of state, treasurer of | 285 |
state, and attorney general, employees of the courts, employees of | 286 |
the bureau of workers' compensation whose compensation the | 287 |
administrator of workers' compensation establishes under division | 288 |
(B) of section 4121.121 of the Revised Code, or employees of an | 289 |
appointing authority authorized by law to fix the compensation of | 290 |
those employees. | 291 |
(I) The director shall set the rate of compensation for all | 292 |
intermittent, seasonal, temporary, emergency, and casual employees | 293 |
in the service of the state who are not considered public | 294 |
employees under section 4117.01 of the Revised Code. Those | 295 |
employees are not entitled to receive employee benefits. This rate | 296 |
of compensation shall be equitable in terms of the rate of | 297 |
employees serving in the same or similar classifications. This | 298 |
division does not apply to elected officials, legislative | 299 |
employees, employees of the legislative service commission, | 300 |
employees who are in the unclassified civil service and exempt | 301 |
from collective bargaining coverage in the office of the secretary | 302 |
of state, auditor of state, treasurer of state, and attorney | 303 |
general, employees of the courts, employees of the bureau of | 304 |
workers' compensation whose compensation the administrator | 305 |
establishes under division (B) of section 4121.121 of the Revised | 306 |
Code, or employees of an appointing authority authorized by law to | 307 |
fix the compensation of those employees. | 308 |
Sec. 3924.01. As used in sections 3924.01 to 3924.14 of the | 309 |
Revised Code: | 310 |
(A) "Actuarial certification" means a written statement | 311 |
prepared by a member of the American academy of actuaries, or by | 312 |
any other person acceptable to the superintendent of insurance, | 313 |
that states that, based upon the person's examination, a carrier | 314 |
offering health benefit plans to small employers is in compliance | 315 |
with sections 3924.01 to 3924.14 of the Revised Code. "Actuarial | 316 |
certification" shall include a review of the appropriate records | 317 |
of, and the actuarial assumptions and methods used by, the carrier | 318 |
relative to establishing premium rates for the health benefit | 319 |
plans. | 320 |
(B) "Adjusted average market premium price" means the average | 321 |
market premium price as determined by the board of directors of | 322 |
the Ohio health reinsurance program either on the basis of the | 323 |
arithmetic mean of all carriers' premium rates for an OHC plan | 324 |
sold to groups with similar case characteristics by all carriers | 325 |
selling OHC plans in the state, or on any other equitable basis | 326 |
determined by the board. | 327 |
(C) "Base premium rate" means, as to any health benefit plan | 328 |
that is issued by a carrier and that covers at least two but no | 329 |
more than fifty employees of a small employer, the lowest premium | 330 |
rate for a new or existing business prescribed by the carrier for | 331 |
the same or similar coverage under a plan or arrangement covering | 332 |
any small employer with similar case characteristics. | 333 |
(D) "Carrier" means any sickness and accident insurance | 334 |
company or health insuring corporation authorized to issue health | 335 |
benefit plans in this state or a MEWA. A sickness and accident | 336 |
insurance company that owns or operates a health insuring | 337 |
corporation, either as a separate corporation or as a line of | 338 |
business, shall be considered as a separate carrier from that | 339 |
health insuring corporation for purposes of sections 3924.01 to | 340 |
3924.14 of the Revised Code. | 341 |
(E) "Case characteristics" means, with respect to a small | 342 |
employer, the geographic area in which the employees work; the age | 343 |
and sex of the individual employees and their dependents; the | 344 |
appropriate industry classification as determined by the carrier; | 345 |
the number of employees and dependents; and such other objective | 346 |
criteria as may be established by the carrier. "Case | 347 |
characteristics" does not include claims experience, health | 348 |
status, or duration of coverage from the date of issue. | 349 |
(F) "Dependent" means the spouse or child of an eligible | 350 |
employee, subject to applicable terms of the health benefits plan | 351 |
covering the employee. | 352 |
(G) "Eligible employee" means an employee who works a normal | 353 |
work week of twenty-five or more hours. "Eligible employee" does | 354 |
not include a temporary or substitute employee, or a seasonal | 355 |
employee who works only part of the calendar year on the basis of | 356 |
natural or suitable times or circumstances. | 357 |
(H) "Health benefit plan" means any hospital or medical | 358 |
expense policy or certificate or any health plan provided by a | 359 |
carrier, that is delivered, issued for delivery, renewed, or used | 360 |
in this state on or after the date occurring six months after | 361 |
November 24, 1995. "Health benefit plan" does not include policies | 362 |
covering only accident, credit, dental, disability income, | 363 |
long-term care, hospital indemnity, medicare supplement, specified | 364 |
disease, or vision care; coverage under a | 365 |
one-time-limited-duration policy of no longer than six months; | 366 |
coverage issued as a supplement to liability insurance; insurance | 367 |
arising out of a workers' compensation or similar law; automobile | 368 |
medical-payment insurance; or insurance under which benefits are | 369 |
payable with or without regard to fault and which is statutorily | 370 |
required to be contained in any liability insurance policy or | 371 |
equivalent self-insurance. | 372 |
(I) "Late enrollee" means an eligible employee or dependent | 373 |
who enrolls in a small employer's health benefit plan other than | 374 |
during the first period in which the employee or dependent is | 375 |
eligible to enroll under the plan or during a special enrollment | 376 |
period described in section 2701(f) of the "Health Insurance | 377 |
Portability and Accountability Act of 1996," Pub. L. No. 104-191, | 378 |
110 Stat. 1955, 42 U.S.C.A. 300gg, as amended. | 379 |
(J) "MEWA" means any "multiple employer welfare arrangement" | 380 |
as defined in section 3 of the "Federal Employee Retirement Income | 381 |
Security Act of 1974," 88 Stat. 832, 29 U.S.C.A. 1001, as amended, | 382 |
except for any arrangement which is fully insured as defined in | 383 |
division (b)(6)(D) of section 514 of that act. | 384 |
(K) "Midpoint rate" means, for small employers with similar | 385 |
case characteristics and plan designs and as determined by the | 386 |
applicable carrier for a rating period, the arithmetic average of | 387 |
the applicable base premium rate and the corresponding highest | 388 |
premium rate. | 389 |
(L) "Pre-existing conditions provision" means a policy | 390 |
provision that excludes or limits coverage for charges or expenses | 391 |
incurred during a specified period following the insured's | 392 |
enrollment date as to a condition for which medical advice, | 393 |
diagnosis, care, or treatment was recommended or received during a | 394 |
specified period immediately preceding the enrollment date. | 395 |
Genetic information shall not be treated as such a condition in | 396 |
the absence of a diagnosis of the condition related to such | 397 |
information. | 398 |
For purposes of this division, "enrollment date" means, with | 399 |
respect to an individual covered under a group health benefit | 400 |
plan, the date of enrollment of the individual in the plan or, if | 401 |
earlier, the first day of the waiting period for such enrollment. | 402 |
(M) "Service waiting period" means the period of time after | 403 |
employment begins before an employee is eligible to be covered for | 404 |
benefits under the terms of any applicable health benefit plan | 405 |
offered by the small employer. | 406 |
(N)(1) "Small employer" means, until January 1, 2016, in | 407 |
connection with a group health benefit plan and with respect to a | 408 |
calendar year and a plan year, an employer who employed an average | 409 |
of at least two but no more than fifty eligible employees on | 410 |
business days during the preceding calendar year and who employs | 411 |
at least two employees on the first day of the plan year and, on | 412 |
and after January 1, 2016, an employer that employed an average of | 413 |
not more than one hundred employees during the preceding calendar | 414 |
year. | 415 |
(2) For purposes of division (N)(1) of this section, all | 416 |
persons treated as a single employer under subsection (b), (c), | 417 |
(m), or (o) of section 414 of the "Internal Revenue Code of 1986," | 418 |
100 Stat. 2085, 26 U.S.C.A. 1, as amended, shall be considered one | 419 |
employer. In the case of an employer that was not in existence | 420 |
throughout the preceding calendar year, the determination of | 421 |
whether the employer is a small or large employer shall be based | 422 |
on the average number of eligible employees that it is reasonably | 423 |
expected the employer will employ on business days in the current | 424 |
calendar year. Any reference in division (N) of this section to an | 425 |
"employer" includes any predecessor of the employer. Except as | 426 |
otherwise specifically provided, provisions of sections 3924.01 to | 427 |
3924.14 of the Revised Code that apply to a small employer that | 428 |
has a health benefit plan shall continue to apply until the plan | 429 |
anniversary following the date the employer no longer meets the | 430 |
requirements of this division. | 431 |
(O) "OHC plan" means an Ohio health care plan, which is the | 432 |
basic, standard, or carrier reimbursement plan for small employers | 433 |
and individuals established in accordance with section 3924.10 of | 434 |
the Revised Code. | 435 |
Sec. 3965.01. (A) The purpose of this chapter is to provide | 436 |
for the establishment of an Ohio health benefit exchange agency | 437 |
and an Ohio health benefit exchange program to facilitate the | 438 |
purchase and sale of qualified health plans in the individual | 439 |
market in this state, and to provide for the establishment of a | 440 |
small business health options program as a part of the Ohio health | 441 |
benefit exchange program to assist qualified small employers in | 442 |
this state in facilitating the enrollment of their employees in | 443 |
qualified health plans offered in the small group market. | 444 |
(B) The Ohio general assembly declares that the following | 445 |
objectives are to be served by this chapter: | 446 |
(1) Extend access to high quality, affordable health plans to | 447 |
all Ohioans; | 448 |
(2) Reduce the number of uninsured Ohioans by creating a | 449 |
cost-effective, user-friendly, and transparent marketplace to help | 450 |
consumers and employers select high quality, affordable health | 451 |
plans and claim available federal tax credits and cost-sharing | 452 |
subsidies; | 453 |
(3) Strengthen the health care delivery system; | 454 |
(4) Guarantee the availability and renewability of health | 455 |
care coverage through the private health insurance market to | 456 |
qualified individuals and qualified small employers; | 457 |
(5) Require that health care service plans and health | 458 |
insurers issuing coverage in the individual and small employer | 459 |
markets compete on the basis of price, quality, and service, not | 460 |
on risk selection; | 461 |
(6) Meet the requirements of the federal act and applicable | 462 |
federal guidance and regulations. | 463 |
Sec. 3965.02. As used in this chapter: | 464 |
(A) "Carrier" means any sickness and accident insurance | 465 |
company or health insuring corporation authorized to issue health | 466 |
benefit plans in this state. | 467 |
(B) "Exchange" or "exchange program" means the Ohio health | 468 |
benefit exchange program established in section 3965.05 of the | 469 |
Revised Code. | 470 |
(C) "Exchange agency" means the Ohio health benefit exchange | 471 |
agency established in section 3965.03 of the Revised Code. | 472 |
(D) "Federal act" means the federal "Patient Protection and | 473 |
Affordable Care Act of 2010," 124 Stat. 119, as amended by the | 474 |
federal "Health Care and Education Reconciliation Act of 2010," | 475 |
124 Stat. 1029, and any amendments to those acts, or regulations | 476 |
or guidance issued under those acts. | 477 |
(E) "Health benefit plan" means a policy, contract, | 478 |
certificate, or agreement offered or issued by a carrier to | 479 |
provide, deliver, arrange for, pay for, or reimburse any of the | 480 |
costs of health care services. "Health benefit plan" does not | 481 |
include any of the following: | 482 |
(1) Policies covering only accident or disability income; | 483 |
(2) Coverage issued as a supplement to liability insurance; | 484 |
(3) Liability insurance, including general liability | 485 |
insurance and automobile liability insurance; | 486 |
(4) Workers' compensation or similar insurance; | 487 |
(5) Automobile medical payment insurance; | 488 |
(6) Credit-only insurance; | 489 |
(7) Coverage for on-site medical clinics; | 490 |
(8) Other similar insurance coverage under which benefits for | 491 |
health care services are secondary or incidental to other | 492 |
insurance benefits; | 493 |
(9) Any plan offering the benefits or coverage described in | 494 |
division (D) of section 3965.06 of the Revised Code. | 495 |
(F) "Qualified dental plan" means a limited scope dental plan | 496 |
that has been certified in accordance with section 3965.07 of the | 497 |
Revised Code. | 498 |
(G) "Qualified employer" means a small employer that meets | 499 |
the criteria for a qualified employer established in section | 500 |
3965.11 of the Revised Code. | 501 |
(H) "Qualified health plan" means a health benefit plan that | 502 |
has been certified pursuant to section 3965.06 of the Revised | 503 |
Code. | 504 |
(I) "Qualified individual" means an individual who meets the | 505 |
criteria for a qualified individual established in section 3965.10 | 506 |
of the Revised Code. | 507 |
(J) "Secretary" means the secretary of the United States | 508 |
department of health and human services. | 509 |
(K) "SHOP exchange" means the small business health options | 510 |
program established in section 3965.11 of the Revised Code. | 511 |
(L)(1) "Small employer" means, until January 1, 2016, an | 512 |
employer that employed an average of not more than fifty employees | 513 |
during the preceding calendar year and, on and after January 1, | 514 |
2016, an employer that employed an average of not more than one | 515 |
hundred employees during the preceding calendar year. | 516 |
(2) For the purposes of division (L)(1) of this section, all | 517 |
persons treated as a single employer under subsection (b), (c), | 518 |
(m), or (o) of section 414 of the "Internal Revenue Code of 1986," | 519 |
100 Stat. 2085, 26 U.S.C. 1, as amended, shall be treated as a | 520 |
single employer. Any reference in division (L) of this section to | 521 |
an "employer" includes any predecessor of the employer. In the | 522 |
case of an employer that was not in existence throughout the | 523 |
preceding calendar year, the determination of whether the employer | 524 |
is a small or large employer shall be based on the average number | 525 |
of eligible employees that the employer is reasonably expected to | 526 |
employ on business days in the current calendar year. All | 527 |
employees shall be counted, including part-time employees and | 528 |
employees who are not eligible for coverage through the employer. | 529 |
Sec. 3965.03. (A) The Ohio health benefit exchange agency is | 530 |
hereby created. The agency shall have a board of directors | 531 |
consisting of the following members: | 532 |
(1) The following individuals, as part of their appointed | 533 |
roles: | 534 |
(a) The superintendent of insurance, or the superintendant's | 535 |
designee; | 536 |
(b) The director of medicaid, or the director's designee; | 537 |
(c) The director of health, or the director's designee; | 538 |
(2) The following members appointed by the governor following | 539 |
the nomination process described in section 3965.04 of the Revised | 540 |
Code. No more than half shall be members of the same political | 541 |
party, none shall have been employed by or worked as an insurance | 542 |
agent or health care provider in the three years prior to | 543 |
appointment, and all shall be residents of this state. At least | 544 |
one of the six appointed members of the board shall have knowledge | 545 |
of best practices used to address disparities in quality, access, | 546 |
and affordability of health care. | 547 |
(a) One individual who, on account of the individual's | 548 |
present or previous vocation, employment, or affiliations, can be | 549 |
classified as a union representative; | 550 |
(b) One individual who, on account of the individual's | 551 |
present or previous vocation, employment, or affiliations, can be | 552 |
classified as a consumer representative; | 553 |
(c) One individual who, on account of the individual's | 554 |
present or previous vocation, employment, or affiliations, can be | 555 |
classified as a small business representative; | 556 |
(d) One individual who, on account of the individual's | 557 |
present or previous vocation, employment, or affiliations, can be | 558 |
classified as an actuary; | 559 |
(e) One individual who, on account of the individual's | 560 |
present or previous vocation, employment, or affiliations, can be | 561 |
classified as an economist; | 562 |
(f) One individual who, on account of the individual's | 563 |
present or previous vocation, employment, or affiliations, can be | 564 |
classified as an employee benefits specialist. | 565 |
(B) The board shall not include health care providers or | 566 |
their representatives, or insurers or their representatives, | 567 |
brokers, or agents. | 568 |
(C)(1) Of the initial appointments made to the board under | 569 |
division (A)(2) of this section, the governor shall appoint two | 570 |
members to a term ending on June 30, 2013, two members to a term | 571 |
ending on June 30, 2014, and two members to a term ending on June | 572 |
30, 2015. Thereafter, terms of office shall be for three years, | 573 |
with each term ending on the same day of the same month as did the | 574 |
term that it succeeds. Each member shall hold office from the date | 575 |
of the member's appointment until the end of the term for which | 576 |
the member was appointed. | 577 |
(2) The governor shall not appoint any person to more than | 578 |
two full terms of office on the board. This restriction does not | 579 |
prevent the governor from appointing a person to fill a vacancy | 580 |
caused by the death, resignation, or removal of a board member and | 581 |
also appointing that person twice to full terms on the board, or | 582 |
from appointing a person previously appointed to fill less than a | 583 |
full term twice to full terms on the board. | 584 |
(3) Vacancies shall be filled in accordance with division (F) | 585 |
of section 3965.04 of the Revised Code. Any member appointed to | 586 |
fill a vacancy occurring prior to the expiration date of the term | 587 |
for which the member's predecessor was appointed shall hold office | 588 |
as a member for the remainder of that term. A member shall | 589 |
continue in office subsequent to the expiration date of the | 590 |
member's term until a successor takes office or until a period of | 591 |
sixty days has elapsed, whichever occurs first. | 592 |
(D) All members of the board shall receive their reasonable | 593 |
and necessary expenses pursuant to section 126.31 of the Revised | 594 |
Code while engaged in the performance of their duties as members | 595 |
and all members described in division (A)(2) of this section also | 596 |
shall receive an annual salary not to exceed sixty thousand | 597 |
dollars in total, payable on the following basis: | 598 |
(1) Except as provided in division (D)(2) of this section, a | 599 |
member shall receive five thousand dollars during a month in which | 600 |
the member attends one or more meetings of the board and shall | 601 |
receive no payment during a month in which the member attends no | 602 |
meeting of the board. | 603 |
(2) A member may receive no more than sixty thousand dollars | 604 |
per year to compensate the member for attending meetings of the | 605 |
board, regardless of the number of meetings held by the board | 606 |
during a year or the number of meetings in excess of twelve within | 607 |
a year that the member attends. | 608 |
(E) The board shall set meeting dates as necessary to perform | 609 |
the duties of the board under this chapter. The board shall meet | 610 |
at least twelve times per year. A majority of the members shall | 611 |
constitute a quorum. | 612 |
(F) Before entering the duties of office, each appointed | 613 |
member to the board described in division (A)(2) of this section | 614 |
shall take an oath of office as required by sections 3.22 and 3.23 | 615 |
of the Revised Code. | 616 |
(G) The board may appoint an advisory committee to the board | 617 |
that shall consist of ten, eleven, or twelve individuals who | 618 |
represent stakeholders, but who shall not vote on the matters | 619 |
before the board. The advisory committee may include all of the | 620 |
following individuals: | 621 |
(1) Representatives of health insuring corporations; | 622 |
(2) Insurance brokers; | 623 |
(3) Health care providers; | 624 |
(4) Consumers, including persons with disabilities; | 625 |
(5) Small business owners; | 626 |
(6) Representatives of organizations or community members | 627 |
that represent ethnic, racial, and rural communities; | 628 |
(7) Others as the board sees fit. | 629 |
(H) The board is responsible for the effective operation of | 630 |
all exchange agency responsibilities and the compliance of the | 631 |
exchange agency and the exchange program with all federal and | 632 |
state rules and regulations. The board shall do all of the | 633 |
following: | 634 |
(1) Exercise all powers reasonably necessary to carry out and | 635 |
comply with the duties, responsibilities, and requirements of this | 636 |
chapter and the federal act; | 637 |
(2) Hire an executive director who shall be in the | 638 |
unclassified civil service. The executive director shall be | 639 |
responsible for the operation of the exchange program. | 640 |
(3) Set the salaries for staff hired by the executive | 641 |
director pursuant to section 3965.05 of the Revised Code that are | 642 |
in amounts reasonably necessary to attract and retain individuals | 643 |
of superior qualifications, publish those salaries in the board's | 644 |
annual budget, and post the board's annual budget on the web site | 645 |
of the exchange agency. | 646 |
(4) Consult with stakeholders relevant to carrying out the | 647 |
activities applicable to the board under this chapter, including | 648 |
all of the following: | 649 |
(a) Health care consumers who are enrolled in health plans; | 650 |
(b) Individuals and entities with experience in facilitating | 651 |
enrollment in health plans; | 652 |
(c) Representatives of small businesses and self-employed | 653 |
individuals; | 654 |
(d) Advocates for enrolling hard-to-reach populations. | 655 |
(5) Develop standardized quality measures to evaluate health | 656 |
benefit plans pursuant to division (A)(7)(g) of section 3965.06 of | 657 |
the Revised Code; | 658 |
(6) Establish a navigator program in accordance with section | 659 |
3965.09 of the Revised Code and select individuals and entities | 660 |
for the navigator program using the criteria listed in that | 661 |
section; | 662 |
(7) Develop privacy policies in accordance with relevant | 663 |
federal and state law, rule, and regulation to protect sensitive | 664 |
applicant and enrollee information; | 665 |
(8) Adopt bylaws for the regulation of its affairs and the | 666 |
conduct of its business. | 667 |
(I) The board may sue and be sued in the name of the exchange | 668 |
agency. | 669 |
Sec. 3965.04. (A) There is hereby created an exchange agency | 670 |
board of directors nominating council consisting of the following | 671 |
individuals: | 672 |
(1) The chief executive officer of AARP, or that officer's | 673 |
designee; | 674 |
(2) The executive director of the Ohio developmental | 675 |
disabilities council, or the executive director's designee; | 676 |
(3) The director or equivalent representative of the Ohio | 677 |
small business council of the Ohio chamber of commerce, or the | 678 |
director or equivalent representative's designee; | 679 |
(4) The chairperson of the board of directors of the council | 680 |
of smaller enterprises, or the chairperson's designee; | 681 |
(5) The executive director of the universal health care | 682 |
action network of Ohio, or the executive director's designee; | 683 |
(6) The president of the Ohio AFL-CIO, or the president's | 684 |
designee; | 685 |
(7) The president or equivalent representative of the largest | 686 |
public employee organization in this state, or the president or | 687 |
equivalent representative's designee; | 688 |
(8) The president of the health policy institute of Ohio, or | 689 |
the president's designee; | 690 |
(9) The executive director of the Ohio commission on minority | 691 |
health, or the executive director's designee; | 692 |
(10) The chairperson of the department of economics at the | 693 |
Ohio state university, or the chairperson's designee; | 694 |
(11) The president of the Ohio association of health plans, | 695 |
or the president's designee; | 696 |
(12) The president of the Ohio state medical association, or | 697 |
the president's designee; | 698 |
(13) The chief executive officer of the Ohio hospital | 699 |
association, or that officer's designee; | 700 |
(14) An individual selected by the president of the senate; | 701 |
(15) An individual selected by the speaker of the house of | 702 |
representatives. | 703 |
(B) At its first meeting each calendar year, the council | 704 |
shall select from among its members a chairperson and secretary. | 705 |
The council may adopt bylaws governing its proceedings. | 706 |
(C) The council shall keep a record of its proceedings. | 707 |
Special meetings may be called by the chairperson, and shall be | 708 |
called by the chairperson upon receipt of a written request for a | 709 |
meeting signed by two or more members of the council. Written | 710 |
notice of the time and place of each meeting shall be sent to each | 711 |
member of the council. Eight members, or their alternates, | 712 |
constitute a quorum. | 713 |
(D) The council shall: | 714 |
(1) Review and evaluate possible appointees for the office of | 715 |
exchange board director of the Ohio health benefit exchange | 716 |
agency; | 717 |
(2) Consistent with section 3965.03 of the Revised Code, not | 718 |
more than eighty-five nor less than sixty days prior to the | 719 |
expiration of the term of an exchange board director or not more | 720 |
than thirty days after the death of, resignation of, or | 721 |
termination of service by, an exchange board director, provide the | 722 |
governor with a list of four individuals who are, in the judgment | 723 |
of the council, the most fully qualified to accede to the office | 724 |
of exchange board director. The council shall not include the name | 725 |
of an individual upon the list, if the appointment of that | 726 |
individual by the governor would result in more than three | 727 |
appointed members of the board of directors belonging to or being | 728 |
affiliated with the same political party. | 729 |
(E) In reviewing and evaluating possible appointees for the | 730 |
office of exchange board director, the council may accept comments | 731 |
from, cooperate with, and request information from any person. The | 732 |
council may make recommendations to the general assembly | 733 |
concerning changes in legislation to assist the council in the | 734 |
performance of its duties. | 735 |
(F) Within thirty days of receipt of the council's | 736 |
recommendations, the governor shall fill a vacancy occurring in | 737 |
the office of exchange board director by appointment of one of the | 738 |
persons recommended by the council. Nothing in this section shall | 739 |
prevent the governor in the governor's discretion from rejecting | 740 |
all of the nominees of the council and reconvening the council in | 741 |
order to select four additional nominees. However, when the | 742 |
governor has reconvened the council and the council has provided | 743 |
the governor with a second list of four names, the governor shall | 744 |
make the appointment from one of the names on the first list or | 745 |
the second list. Each appointment by the governor shall be subject | 746 |
to the advice and consent of the senate. | 747 |
(G) Members of the council shall be compensated on a per diem | 748 |
basis pursuant to the procedures set forth in section 124.14 of | 749 |
the Revised Code plus reasonable travel expenses. All the expenses | 750 |
of the nominating council shall be paid from moneys appropriated | 751 |
to the exchange agency for that purpose. | 752 |
Sec. 3965.05. (A) There is hereby created the Ohio health | 753 |
benefit exchange program within the Ohio health benefit exchange | 754 |
agency consisting of an exchange for individual coverage and a | 755 |
SHOP exchange. The executive director of the exchange agency shall | 756 |
be responsible for operating the exchange and shall hire all | 757 |
necessary staff to meet the responsibilities of the executive | 758 |
director as described in this section. All staff hired by the | 759 |
executive director shall be in the classified civil service. | 760 |
(B) The executive director shall do all of the following: | 761 |
(1) Make qualified health plans available to qualified | 762 |
individuals and qualified employers beginning on January 1, 2014; | 763 |
(2) Establish procedures by rule for the certification, | 764 |
recertification, and decertification of health benefit plans as | 765 |
qualified health plans pursuant to section 3965.06 of the Revised | 766 |
Code and consistent with guidelines developed by the secretary | 767 |
under section 1311(c) of the federal act; | 768 |
(3) Provide for the operation of a toll-free telephone | 769 |
hotline to respond to requests for assistance regarding the | 770 |
exchange; | 771 |
(4) Establish enrollment periods, consistent with the | 772 |
requirements of section 1311(c)(6) of the federal act; | 773 |
(5) Maintain a web site through which individuals can enroll | 774 |
in qualified health plans, and through which enrollees and | 775 |
applicants can obtain standardized comparative information on such | 776 |
plans; | 777 |
(6) Assign a rating to each qualified health plan offered | 778 |
through the exchange in accordance with the criteria developed by | 779 |
the secretary under section 1311(c)(3) of the federal act, and | 780 |
determine the level of coverage of each qualified health plan in | 781 |
accordance with regulations issued by the secretary under section | 782 |
1302(d)(2)(A) of the federal act; | 783 |
(7) Ensure that throughout the state a choice of qualified | 784 |
health plans are provided at the catastrophic, bronze, silver, | 785 |
gold, and platinum levels of coverage as those levels are | 786 |
described in sections 1302(d) and (e) of the federal act. A | 787 |
particular plan may be available in one region of the state and | 788 |
not others so long as throughout the state there is a comparable | 789 |
selection of options at each coverage level. | 790 |
(8) Use a standardized format for presenting health benefit | 791 |
options in the exchange, including the use of the uniform outline | 792 |
of coverage established under section 2715 of the "Public Health | 793 |
Service Act," 124 Stat. 132, 42 U.S.C. 300gg-15 (2010); | 794 |
(9) Inform individuals of eligibility requirements for the | 795 |
programs listed in division (B) of section 3965.10 of the Revised | 796 |
Code and enroll all eligible individuals in those programs; | 797 |
(10) Grant certifications attesting that individuals are | 798 |
exempt from the individual responsibility requirement and penalty | 799 |
under section 5000A of the "Internal Revenue Code of 1986," 124 | 800 |
Stat. 1215, if individuals meet the criteria listed in division | 801 |
(C) of section 3965.10 of the Revised Code; | 802 |
(11) Establish and make available by electronic means a | 803 |
calculator to determine the actual cost of coverage after | 804 |
application of any premium tax credit under section 36B of the | 805 |
"Internal Revenue Code of 1986," 125 Stat. 168, and any | 806 |
cost-sharing reduction under section 1402 of the federal act; | 807 |
(12) Transfer to the United States secretary of the treasury | 808 |
all of the following: | 809 |
(a) A list of the individuals who are issued a certification | 810 |
under division (B)(10) of this section, including the name and | 811 |
taxpayer identification number of each individual; | 812 |
(b) The name and taxpayer identification number of each | 813 |
individual who was an employee of an employer but who was | 814 |
determined to be eligible for the premium tax credit under section | 815 |
36B of the "Internal Revenue Code of 1986," 125 Stat. 168, because | 816 |
of either of the following reasons: | 817 |
(i) The employer did not provide minimum essential coverage. | 818 |
(ii) The employer provided the minimum essential coverage, | 819 |
but it was determined under section 36B(c)(2)(C) of the "Internal | 820 |
Revenue Code of 1986," 125 Stat. 168, to either be unaffordable to | 821 |
the employee or not to provide the required minimum actuarial | 822 |
value. | 823 |
(c) The name and taxpayer identification number of both of | 824 |
the following: | 825 |
(i) Each individual who notifies the executive director | 826 |
pursuant to section 1411(b)(4) of the federal act that the | 827 |
individual has changed employers; | 828 |
(ii) Each individual who ceases coverage under a qualified | 829 |
health plan during a plan year and the effective date of that | 830 |
cessation. | 831 |
(13) Provide to each employer the name of each employee of | 832 |
the employer described in division (B)(12)(c)(ii) of this section | 833 |
who ceases coverage under a qualified health plan during a plan | 834 |
year and the effective date of the cessation; | 835 |
(14) Review the rate of premium growth within the exchange | 836 |
and outside the exchange, and consider the information in making | 837 |
recommendations to the board of the exchange agency on whether to | 838 |
continue limiting qualified employer status to small employers; | 839 |
(15) Meet the following financial integrity requirements: | 840 |
(a) Keep an accurate accounting of all activities, receipts, | 841 |
and expenditures, and annually submit to the secretary an | 842 |
accounting report as required by section 1313 of the federal act; | 843 |
(b) Conduct an annual fiscal audit; | 844 |
(c) Annually prepare a written report on the implementation | 845 |
and performance of the exchange functions during the preceding | 846 |
fiscal year, including, at a minimum, the manner in which funds | 847 |
were expended and the progress toward, and the achievement of, the | 848 |
requirements of this chapter. This report shall be transmitted to | 849 |
the general assembly and the governor and shall be made available | 850 |
to the public on the web site of the exchange. | 851 |
(d) Fully cooperate with any investigation conducted by the | 852 |
secretary pursuant to the secretary's authority under the federal | 853 |
act and allow the secretary, in coordination with the inspector | 854 |
general of the United States department of health and human | 855 |
services, to do all of the following: | 856 |
(i) Investigate the affairs of the exchange; | 857 |
(ii) Examine the properties and records of the exchange; | 858 |
(iii) Require periodic reports in relation to the activities | 859 |
undertaken by the exchange. | 860 |
(e) In carrying out the activities of the exchange under this | 861 |
chapter, not use any funds intended for the administrative and | 862 |
operational expenses of the exchange for staff retreats, | 863 |
promotional giveaways, excessive executive compensation, or | 864 |
promotion of federal or state legislative and regulatory | 865 |
modifications. | 866 |
(16) Provide referrals to any applicable office of health | 867 |
insurance consumer assistance or health insurance ombudsman | 868 |
established under section 2793 of the "Public Health Service Act," | 869 |
124 Stat. 138, 42 U.S.C. 300gg-93 (2010), or the department of | 870 |
insurance for any enrollee with a grievance, complaint, or | 871 |
question regarding the enrollee's health plan, coverage, or a | 872 |
determination under that plan or coverage; | 873 |
(17) Market and publicize the availability of health care | 874 |
coverage and federal subsidies through the exchange including | 875 |
efforts to reach hard-to-reach populations; | 876 |
(18) Before January 1, 2019, conduct an ongoing study of | 877 |
exchange activities and the enrollees in qualified health plans | 878 |
offered through the exchange, including all of the following: | 879 |
(a) A survey of the cost and affordability of insurance | 880 |
provided under both the exchange for individual coverage and the | 881 |
SHOP exchange; | 882 |
(b) The number of physicians by area and specialty who are | 883 |
not taking or accepting new patients who are enrolled in qualified | 884 |
health plans through the exchange; | 885 |
(c) The adequacy of provider networks of qualified health | 886 |
plans. | 887 |
(19) Collaborate with agencies and departments of this state, | 888 |
including the department of job and family services and the | 889 |
department of insurance, to allow an individual to remain enrolled | 890 |
with the individual's carrier and provider network if the | 891 |
individual loses eligibility for premium tax credits and becomes | 892 |
eligible for medicaid, or loses eligibility for medicaid and | 893 |
becomes eligible for premium tax credits through the exchange; | 894 |
(20) Ensure that the privacy of applicants and enrollees in | 895 |
the exchange is protected by enforcing the privacy policies | 896 |
developed by the board of the exchange agency pursuant to division | 897 |
(H)(7) of section 3965.03 of the Revised Code. | 898 |
(C) The executive director may do any of the following: | 899 |
(1) Contract with an eligible entity for any of the functions | 900 |
of the exchange described in this chapter, including the | 901 |
department of job and family services or an entity that has | 902 |
experience in individual and small group health insurance, benefit | 903 |
administration or other experience relevant to the | 904 |
responsibilities to be assumed by the entity. A carrier or an | 905 |
affiliate of a carrier is not an eligible entity. | 906 |
(2) Enter into information-sharing agreements with federal | 907 |
and state agencies and departments and other state health benefit | 908 |
exchange agencies to carry out the responsibilities of the | 909 |
exchange under this chapter, provided those agreements include | 910 |
adequate protections with respect to the confidentiality of the | 911 |
information to be shared and comply with all state and federal | 912 |
laws, rules, and regulations. | 913 |
(3) Make available supplemental coverage for enrollees of the | 914 |
exchange to the extent permitted by the federal act, provided that | 915 |
funds in the Ohio health benefit exchange operating fund | 916 |
established in section 3965.12 of the Revised Code are not used to | 917 |
pay the cost of that coverage. Any supplemental coverage offered | 918 |
in the exchange shall be subject to the charge imposed on | 919 |
qualified health plans under section 3965.12 of the Revised Code. | 920 |
(D) Neither the executive director nor any carrier offering a | 921 |
health benefit plan through the exchange shall do either of the | 922 |
following: | 923 |
(1) Make available on the exchange any health plan that is | 924 |
not a qualified health plan; | 925 |
(2) Charge an individual a fee or penalty for termination of | 926 |
coverage if the individual enrolls in another type of minimum | 927 |
essential coverage because the individual has become newly | 928 |
eligible for that coverage or because the individual's | 929 |
employer-sponsored coverage has become affordable under the | 930 |
standards of section 36B(c)(2)(C) of the "Internal Revenue Code of | 931 |
1986," 125 Stat. 168. | 932 |
(E) All data collection performed by the executive director | 933 |
pursuant to this chapter shall include demographic information, | 934 |
including racial and ethnic information as specified by the | 935 |
executive director in rules adopted in accordance with section | 936 |
3965.13 of the Revised Code. | 937 |
Sec. 3965.06. (A) The executive director of the exchange may | 938 |
certify a health benefit plan as a qualified health plan if all of | 939 |
the following conditions are met: | 940 |
(1) The plan provides the essential health benefits package | 941 |
described in section 1302(a) of the federal act, except that the | 942 |
plan is not required to provide essential benefits that duplicate | 943 |
the minimum benefits of qualified dental plans, as provided in | 944 |
section 3965.07 of the Revised Code, if both of the following are | 945 |
true: | 946 |
(a) The executive director has determined that at least one | 947 |
qualified dental plan is available to supplement the qualified | 948 |
health plan's coverage. | 949 |
(b) The carrier makes prominent disclosure at the time it | 950 |
offers the plan, in a form approved by the executive director, | 951 |
that the plan does not provide the full range of essential | 952 |
pediatric benefits, and that qualified dental plans providing | 953 |
those benefits and other dental benefits not covered by the plan | 954 |
are offered through the exchange. | 955 |
(2) The premium rates and contract language have been | 956 |
approved by the superintendent of insurance. | 957 |
(3) The plan provides at least a bronze level of coverage, as | 958 |
determined pursuant to division (B)(6) of section 3965.05 of the | 959 |
Revised Code unless the plan is certified as a qualified | 960 |
catastrophic plan, which will only be offered to individuals | 961 |
eligible for catastrophic coverage. | 962 |
(4) The plan's cost-sharing requirements do not exceed the | 963 |
limits established under section 1302(c)(1) of the federal act, | 964 |
and, if the plan is offered through the SHOP exchange, the plan's | 965 |
deductible does not exceed the limits established under section | 966 |
1302(c)(2) of the federal act. | 967 |
(5) The carrier offering the plan meets all of the following | 968 |
criteria: | 969 |
(a) The carrier is licensed and in good standing to offer | 970 |
health insurance coverage in this state. | 971 |
(b) The carrier offers at least one qualified catastrophic | 972 |
health plan, at least one qualified health plan in the bronze | 973 |
level, at least one qualified health plan in the silver level, at | 974 |
least one qualified health plan in the gold level, and at least | 975 |
one qualified health plan in the platinum level, as determined by | 976 |
the executive director pursuant to division (B)(6) of section | 977 |
3965.05 of the Revised Code, through the SHOP exchange or the | 978 |
exchange for individual coverage or both if the carrier | 979 |
participates in both the SHOP exchange and the exchange for | 980 |
individual coverage. | 981 |
(c) The carrier charges the same premium rate for each | 982 |
qualified health plan without regard to whether the plan is | 983 |
offered through the exchange and without regard to whether the | 984 |
plan is offered directly from the carrier or through an insurance | 985 |
agent. | 986 |
(d) The carrier does not charge any fee or penalty for | 987 |
termination of coverage in violation of division (D)(2) of section | 988 |
3965.05 of the Revised Code. | 989 |
(e) The carrier complies with the regulations developed by | 990 |
the secretary under section 1311(d) of the federal act and such | 991 |
other requirements as the executive director may establish. | 992 |
(6) The plan meets the requirements of certification as | 993 |
established by rule pursuant to division (B)(2) of section 3965.05 | 994 |
of the Revised Code and by the secretary under section 1311(c) of | 995 |
the federal act. | 996 |
(7) The executive director determines that making the plan | 997 |
available through the exchange is in the interest of qualified | 998 |
individuals and qualified employers in this state. In making such | 999 |
a determination, the executive director shall consider all of the | 1000 |
following: | 1001 |
(a) Plans should not make use of marketing practices that | 1002 |
would discourage enrollment by people with significant health | 1003 |
needs. | 1004 |
(b) Plans must provide a sufficient choice of providers and, | 1005 |
where available, must include essential community providers that | 1006 |
serve low-income, medically underserved individuals. | 1007 |
(c) Plans must be accredited by a recognized accreditation | 1008 |
organization, or achieve accreditation from a recognized | 1009 |
accreditation organization within a time period defined by the | 1010 |
board of the exchange agency, based on a review of their clinical | 1011 |
quality, patient experience, access, utilization management, | 1012 |
quality assurance, provider credentialing, complaints and appeals | 1013 |
processes, network adequacy and access, and patient information | 1014 |
programs. | 1015 |
(d) Plans must have a quality improvement strategy. | 1016 |
(e) Plans must use a uniform enrollment form for individuals | 1017 |
and small employers. | 1018 |
(f) Plans must use a standard format for presenting plan | 1019 |
options. | 1020 |
(g) Plans must provide information about their performance on | 1021 |
standardized quality measures as determined by the board of the | 1022 |
exchange agency under division (H)(5) of section 3965.03 of the | 1023 |
Revised Code to enrollees and prospective enrollees. | 1024 |
(h) Plans must report annually to the federal government on | 1025 |
the quality of their pediatric care. | 1026 |
(8) The plan does not offer benefits or coverage described in | 1027 |
division (D) of this section. | 1028 |
(B) The executive director shall not exclude a health benefit | 1029 |
plan from certification for any of the following reasons: | 1030 |
(1) On the basis that the plan is a fee-for-service plan; | 1031 |
(2) Through the imposition of premium price controls by the | 1032 |
exchange; | 1033 |
(3) On the basis that the health benefit plan provides | 1034 |
treatments necessary to prevent patients' deaths in circumstances | 1035 |
the executive director determines are inappropriate or too costly. | 1036 |
(C) The executive director shall require each carrier seeking | 1037 |
certification of a plan as a qualified health plan to do all of | 1038 |
the following: | 1039 |
(1) Submit a justification to the executive director for any | 1040 |
premium increase before implementation of that increase; | 1041 |
(2) Prominently post any information regarding a premium | 1042 |
increase on its web site. The executive director shall take this | 1043 |
information, along with the information and the recommendations | 1044 |
provided to the exchange by the secretary under section 2794(b) of | 1045 |
the "Public Health Service Act," 124 Stat. 139, 42 U.S.C. 300gg-94 | 1046 |
(2010), into consideration when determining whether to allow the | 1047 |
carrier to make plans available through the exchange. | 1048 |
(3) Make available to the public, in language that the | 1049 |
intended audience, including individuals with limited English | 1050 |
proficiency, can readily understand, and submit to the exchange, | 1051 |
the secretary, and the superintendent of insurance, accurate and | 1052 |
timely disclosure of all of the following information: | 1053 |
(a) Claims payment policies and practices; | 1054 |
(b) Periodic financial disclosures; | 1055 |
(c) Data on enrollment, disenrollment, the number of claims | 1056 |
that are denied, and rating practices; | 1057 |
(d) Information on cost-sharing and payments with respect to | 1058 |
any out-of-network coverage; | 1059 |
(e) Information on enrollee and participant rights under | 1060 |
Title I of the federal act; | 1061 |
(f) Other information as determined appropriate by the | 1062 |
secretary pursuant to section 1303 of the federal act. | 1063 |
(4) Permit individuals to learn, in a timely manner upon the | 1064 |
request of the individual, the amount of cost-sharing, including | 1065 |
deductibles, copayments, and coinsurance, under the individual's | 1066 |
plan or coverage that the individual would be responsible for | 1067 |
paying with respect to the furnishing of a specific item or | 1068 |
service by a participating provider. At a minimum, this | 1069 |
information shall be made available to the individual through a | 1070 |
web site and through other means for individuals without access to | 1071 |
the internet. | 1072 |
(D) The executive director shall not consider any health | 1073 |
benefit plan for certification as a qualified health plan if the | 1074 |
health benefit plan includes any of the following: | 1075 |
(1) Any of the following benefits if they are provided under | 1076 |
a separate policy, certificate, or contract of insurance or are | 1077 |
otherwise not an integral part of the plan: | 1078 |
(a) Limited scope dental or vision benefits; | 1079 |
(b) Benefits for long-term care, nursing home care, home | 1080 |
health care, or community-based care; | 1081 |
(c) Other similar, limited benefits specified in federal | 1082 |
regulations issued pursuant to the "Health Insurance Portability | 1083 |
and Accountability Act of 1996," 110 Stat. 1936 (1996). | 1084 |
(2) Either of the following benefits if the benefits are | 1085 |
provided under a separate policy, certificate, or contract of | 1086 |
insurance, there is no coordination between the provision of the | 1087 |
benefits and any exclusion of benefits under any health benefit | 1088 |
plan maintained by the same carrier, and the benefits are paid | 1089 |
with respect to an event without regard to whether benefits are | 1090 |
provided with respect to such an event under any health benefit | 1091 |
plan maintained by the same carrier: | 1092 |
(a) Coverage only for a specified disease or illness; | 1093 |
(b) Hospital indemnity or other fixed indemnity insurance. | 1094 |
(3) Any of the following if offered as a separate policy, | 1095 |
certificate, or contract of insurance: | 1096 |
(a) Medicare supplemental health insurance as defined under | 1097 |
section 1882(g)(1) of the "Social Security Act," 124 Stat. 460, 42 | 1098 |
U.S.C. 1395ss (2010); | 1099 |
(b) Coverage supplemental to the coverage provided under | 1100 |
chapter 55 of Title 10 of the United States Code; | 1101 |
(c) Similar supplemental coverage provided to coverage under | 1102 |
a group health plan. | 1103 |
(E) The executive director shall not exempt any carrier | 1104 |
seeking certification of a qualified health plan, regardless of | 1105 |
the type or size of the carrier, from state licensure or solvency | 1106 |
requirements and shall apply the criteria of this section in a | 1107 |
manner that assures a level playing field between or among | 1108 |
carriers participating in the exchange. | 1109 |
Sec. 3965.07. (A) The executive director may certify a | 1110 |
dental plan as a qualified dental plan if all of the following | 1111 |
conditions are met: | 1112 |
(1) The plan provides limited scope dental benefits that are | 1113 |
offered separately from any qualified health plan. | 1114 |
(2) The plan does not substantially duplicate the benefits | 1115 |
typically offered by health benefit plans without dental coverage. | 1116 |
(3) The plan includes, at a minimum, the essential pediatric | 1117 |
dental benefits prescribed by the secretary pursuant to section | 1118 |
1302(b)(1)(J) of the federal act, and such other dental benefits | 1119 |
as the executive director or the secretary may specify by rule or | 1120 |
regulation. | 1121 |
(B) The provisions of this chapter that are applicable to | 1122 |
qualified health plans shall also apply to qualified dental plans | 1123 |
to the extent relevant with the following exceptions: | 1124 |
(1) A carrier that is licensed to offer dental coverage need | 1125 |
not be licensed to offer other health benefits. | 1126 |
(2) Carriers may jointly offer a comprehensive plan through | 1127 |
the exchange in which the dental benefits are provided by a | 1128 |
carrier through a qualified dental plan and the other benefits are | 1129 |
provided by a carrier through a qualified health plan, provided | 1130 |
that the plans are priced separately and are also made available | 1131 |
for purchase separately at the same price. | 1132 |
(C) The executive director may adopt additional rules | 1133 |
concerning qualified dental health plans. | 1134 |
Sec. 3965.08. (A) Health plans that are certified as | 1135 |
qualified health plans pursuant to section 3965.06 of the Revised | 1136 |
Code and dental plans that are certified as qualified dental plans | 1137 |
pursuant to section 3965.07 of the Revised Code may bid to | 1138 |
participate in the exchange for individual coverage and the SHOP | 1139 |
exchange. Bidding plans will be scored by the executive director | 1140 |
of the exchange based on the following criteria: | 1141 |
(1) The cost of the plan to individuals in terms of premiums | 1142 |
and typical out-of-pocket expenses; | 1143 |
(2) The carrier's overall offering and plan design. Preferred | 1144 |
features of health benefit plans include the following: | 1145 |
(a) Use of a select, high-performance network; | 1146 |
(b) Centers of excellence for complex conditions or | 1147 |
procedures; | 1148 |
(c) Innovative pharmacy management; | 1149 |
(d) Active consumer engagement; | 1150 |
(e) Wellness incentives and management; | 1151 |
(f) Preventive and flex benefits for chronic conditions. | 1152 |
(3) Use of multilingual community outreach or nontraditional | 1153 |
media outlets to reach hard-to-reach communities for marketing | 1154 |
purposes; | 1155 |
(4) The ability of the plan to confirm its compliance with | 1156 |
various program rules and reporting requirements; | 1157 |
(5) The design of the plan's enrollment process, including | 1158 |
the following considerations: | 1159 |
(a) Level of burden to the consumer; | 1160 |
(b) Ease of use with regard to populations that may | 1161 |
experience barriers to enrollment such as the disabled and those | 1162 |
with limited English language proficiency. | 1163 |
(6) A determination of whether including a given plan in the | 1164 |
exchange will encourage a robust system of regional plans. | 1165 |
(B) After consideration of the criteria listed in division | 1166 |
(A) of this section, the executive director shall select qualified | 1167 |
health plans and qualified dental plans to participate in the | 1168 |
exchange. There shall not be a set minimum or maximum number of | 1169 |
qualified health or dental plans that are required to exist in the | 1170 |
exchange. | 1171 |
(C) In the course of selectively contracting for health care | 1172 |
coverage, the executive director shall do both of the following: | 1173 |
(a) Seek to contract with carriers so as to provide health | 1174 |
care coverage choices that offer the optimal combination of | 1175 |
choice, value, quality, and service; | 1176 |
(b) Maintain a robust system of regional plans. | 1177 |
Sec. 3965.09. (A) The board of the exchange agency shall | 1178 |
establish a navigator program in accordance with section 1311(i) | 1179 |
of the federal act, designed to advise individual consumers and | 1180 |
employers on the use of the exchange. | 1181 |
(B) The board shall select individuals and entities to be | 1182 |
part of the navigator program. To be considered for a grant under | 1183 |
the navigator program, an individual or entity shall meet all of | 1184 |
the following criteria: | 1185 |
(1) The individual or entity shall demonstrate to the board | 1186 |
that the individual or entity has existing relationships or could | 1187 |
readily establish relationships with consumers, employers and | 1188 |
employees, or self-employed individuals, likely to be qualified to | 1189 |
enroll in a qualified health plan; | 1190 |
(2) The individual or entity shall not be a health insurance | 1191 |
issuer or receive any compensation, either directly or indirectly, | 1192 |
from any health insurance issuer in connection with the enrollment | 1193 |
of any qualified individuals or employees of a qualified employer | 1194 |
in a qualified health plan; | 1195 |
(3) The individual or entity shall be capable of carrying out | 1196 |
the duties listed in division (C) of this section. | 1197 |
(C) Navigators shall do all of the following: | 1198 |
(1) Conduct public education activities to raise awareness of | 1199 |
the availability of qualified health plans; | 1200 |
(2) Distribute fair and impartial information concerning | 1201 |
enrollment in qualified health plans, and the availability of | 1202 |
premium tax credits under section 36B of the "Internal Revenue | 1203 |
Code of 1986," 125 Stat. 168, and cost-sharing reductions under | 1204 |
section 1402 of the federal act; | 1205 |
(3) Facilitate enrollment in qualified health plans; | 1206 |
(4) Provide referrals to any applicable office of health | 1207 |
insurance consumer assistance or health insurance ombudsman | 1208 |
established under section 2793 of the "Public Health Service Act," | 1209 |
124 Stat. 138, 42 U.S.C. 300gg-93 (2010), or the department of | 1210 |
insurance, for any enrollee with a grievance, complaint, or | 1211 |
question regarding their health benefit plan or coverage or a | 1212 |
determination under that plan or coverage; | 1213 |
(5) Provide information in a manner that is culturally and | 1214 |
linguistically appropriate to the needs of the population being | 1215 |
served by the exchange. | 1216 |
(D) The board shall award grants to individuals and entities | 1217 |
approved by the board to perform work as navigators in order to | 1218 |
fund the required duties described in division (C) of this | 1219 |
section. Funds for grants shall be withdrawn from the Ohio health | 1220 |
benefit exchange operating fund established in section 3965.12 of | 1221 |
the Revised Code. | 1222 |
Sec. 3965.10. (A) Only qualified individuals shall be | 1223 |
permitted to purchase health insurance through the exchange. A | 1224 |
qualified individual is an individual, including a minor, who | 1225 |
meets all of the following criteria: | 1226 |
(1) The individual is seeking to enroll in a qualified health | 1227 |
plan offered to individuals through the exchange. | 1228 |
(2) The individual resides in this state. | 1229 |
(3) The individual is not incarcerated at the time of | 1230 |
enrollment, other than incarceration pending the disposition of | 1231 |
charges. | 1232 |
(4) The individual is, and is reasonably expected to be, for | 1233 |
the entire period for which enrollment is sought, a citizen or | 1234 |
national of the United States, or an alien lawfully present in the | 1235 |
United States. | 1236 |
(B) If the executive director of the exchange program | 1237 |
determines that an individual seeking to purchase health insurance | 1238 |
through the exchange is eligible for the medicaid program under | 1239 |
Title XIX of the "Social Security Act," 124 Stat. 328, 42 U.S.C. | 1240 |
1396 (2010), the children's health insurance program under Title | 1241 |
XXI of the "Social Security Act," 111 Stat. 552, 42 U.S.C. 1397aa | 1242 |
(1997), or any applicable state or local public program, the | 1243 |
executive director shall enroll the individual in that program. | 1244 |
(C) An individual shall be exempt from the individual | 1245 |
responsibility requirement under section 5000A of the "Internal | 1246 |
Revenue Code of 1986," 124 Stat. 1215, or from the penalty imposed | 1247 |
by that section for either of the following reasons: | 1248 |
(1) There is no affordable qualified health plan available | 1249 |
through the exchange, or the individual's employer, covering the | 1250 |
individual. | 1251 |
(2) The individual meets the requirements for any other such | 1252 |
exemption from the individual responsibility requirement or | 1253 |
penalty. | 1254 |
Sec. 3965.11. (A) As a part of the exchange there shall | 1255 |
exist a SHOP exchange through which qualified employers may access | 1256 |
coverage for their employees, and that shall enable any qualified | 1257 |
employer to specify a level of coverage so that any of its | 1258 |
employees may enroll in any qualified health plan offered through | 1259 |
the SHOP exchange at the specified level of coverage. | 1260 |
(B) Only qualified employers shall be permitted to | 1261 |
participate in the SHOP exchange. A qualified employer is a small | 1262 |
employer that elects to make its full-time employees eligible for | 1263 |
one or more qualified health plans offered through the SHOP | 1264 |
exchange, and at the option of the employer, some or all of its | 1265 |
part-time employees, provided that the employer meets either of | 1266 |
the following criteria: | 1267 |
(1) The employer has its principal place of business in this | 1268 |
state and elects to provide coverage through the SHOP exchange to | 1269 |
all of its eligible employees, wherever employed; | 1270 |
(2) The employer elects to provide coverage through the SHOP | 1271 |
exchange to all of its eligible employees who are principally | 1272 |
employed in this state. | 1273 |
(C) If an employer that makes enrollment in qualified health | 1274 |
plans available to its employees through the SHOP exchange would | 1275 |
cease to be a small employer by reason of an increase in the | 1276 |
number of its employees, the employer shall continue to be treated | 1277 |
as a small employer for purposes of this chapter as long as it | 1278 |
continuously makes enrollment through the SHOP exchange available | 1279 |
to its employees. | 1280 |
Sec. 3965.12. (A)(1) The exchange agency may charge | 1281 |
assessments or user fees to carriers or otherwise may generate | 1282 |
funding necessary to support its operations and the operations of | 1283 |
the exchange. | 1284 |
(2) All funds collected by the exchange agency pursuant to | 1285 |
division (A)(1) of this section shall be paid into the state | 1286 |
treasury to the credit of the Ohio health benefit exchange | 1287 |
operating fund, which is hereby created. | 1288 |
(B) The exchange agency shall publish the average costs of | 1289 |
licensing, regulatory fees, and any other payments required by the | 1290 |
exchange agency and the exchange, and the administrative costs of | 1291 |
the exchange agency and the exchange, on a web site to educate | 1292 |
consumers on such costs. This information shall include | 1293 |
information on monies lost to waste, fraud, and abuse. | 1294 |
Sec. 3965.13. The board of the exchange agency and the | 1295 |
executive director of the exchange may adopt rules to implement | 1296 |
the provisions of this chapter. Rules adopted pursuant to this | 1297 |
section shall not conflict with or prevent the application of | 1298 |
regulations promulgated by the secretary under the federal act. | 1299 |
Sec. 3965.14. Nothing in this chapter, and no action taken | 1300 |
by the board of the exchange agency or the executive director of | 1301 |
the exchange pursuant to this chapter, shall be construed to | 1302 |
preempt or supersede the authority of the superintendent of | 1303 |
insurance to regulate the business of insurance within this state. | 1304 |
Except as expressly provided to the contrary in this chapter, all | 1305 |
carriers offering qualified health plans in this state shall | 1306 |
comply fully with all applicable health insurance laws of this | 1307 |
state and rules adopted and orders issued by the superintendent. | 1308 |
Section 2. That existing sections 124.14 and 3924.01 of the | 1309 |
Revised Code are hereby repealed. | 1310 |
Section 3. Within ninety days after the effective date of | 1311 |
this act, the exchange agency board of directors nominating | 1312 |
council established in section 3965.04 of the Revised Code as | 1313 |
enacted in this act shall produce two, three, or four nominees for | 1314 |
each position described in division (A)(2) of section 3965.03 of | 1315 |
the Revised Code. Following nomination, the Governor shall appoint | 1316 |
the members described in that division to the board of the Ohio | 1317 |
Health Benefit Exchange Agency in accordance with division (F) of | 1318 |
section 3965.04 of the Revised Code as enacted in this act. At the | 1319 |
time of appointment, the Governor shall determine which members of | 1320 |
the board shall serve the terms described in division (C)(1) of | 1321 |
section 3965.03 of the Revised Code. For each subsequent | 1322 |
nomination period, the nominating council shall produce four | 1323 |
nominees for each position as required by division (D)(2) of | 1324 |
section 3965.04 of the Revised Code. | 1325 |