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Bill Summary · HB 838

Overview

  • Bill: HB 838 (H.B. No. 838)
  • Session: 136th Ohio General Assembly (2025-2026)
  • Sponsor: Rep. Williams (co-sponsor: Josh Williams)
  • Purpose: Prohibit coverage for gender reassignment surgery (GRS) under Medicaid and state/local employee health plans; modify various sections of the Revised Code to implement and enforce these prohibitions, and adjust related provisions governing local government funds and collective bargaining in light of the new policy.

Main purpose and intent

  • To bar coverage for gender reassignment surgery under:
    • Ohio Medicaid
    • Health plans provided to state and local public employees or elected officials (including local authorities and municipal employees)
  • To require annual certification of compliance by local authorities and to link compliance to funding reductions if noncompliant.
  • To establish a framework for the administration, enforcement, and financial consequences of these coverage prohibitions, including adjustments to local government funding and related funds.

Key provisions and changes

  • Section 9.051 (new) – Definitions and prohibition framework

    • Defines terms: local authority, policy/contract/plan, and gender reassignment surgery.
    • Prohibits state/local policies, contracts, or plans that provide GRs coverage for elected/appointed officials and employees.
    • Requires local authorities to certify compliance annually (by April 30) to the attorney general.
    • AG must list noncompliant local authorities to the tax commissioner by June 15.

  • 9.051(B)-(D) and related language integrate with state/local employee benefits

    • Local authorities must not offer GRS coverage in their health plans.
    • Annual certification process with AG and tax commissioner involvement.

  • Sec. 4117.10 (amendment) – Collective bargaining framework (override-clauses and conflict rules)

    • Retains supremacy of specific state/local laws over collective bargaining agreements on certain subjects (including GRS prohibition under the new 9.051), and clarifies bargaining dynamics when a grievance is involved.
    • Establishes a state Office of Collective Bargaining to negotiate with exclusive representatives on wages, hours, and terms of employment, and to coordinate bargaining-related data and reports.

  • Sec. 5164.21 (new) – Medicaid GRS prohibition

    • Explicitly states that the Medicaid program shall not cover gender reassignment surgery.

  • Secs. 5747.50, 5747.502, 5747.504, 5747.505, 5747.51, 5747.53 (amended/repealed)

    • Repeal and restatement of current provisions related to the Local Government Fund (LGF) and distributions to counties and municipalities.
    • Rewrites govern how LGF distributions are calculated, how reductions are applied, and how local subdivisions receive funds (including interactions with school districts, fire districts, and municipalities).

  • Sec. 5747.506 (new) – GRS adjustment to LGF payments

    • Introduces a “gender reassignment surgery adjustment” that reduces LGF payments to a local authority if AG determines noncompliance with GRS prohibition.
    • Specifies allocation of the adjustment across municipalities, townships, villages, and counties, with rules for sequencing reductions and, in some cases, triggering additional reductions to counties.

  • Sec. 5747.502, 5747.504, 5747.505, 5747.53 (detail variants)

    • These sections govern:
    • How LGF payments are calculated and adjusted for traffic-camera-related adjustments and school-safety uses (in context with the law as it interacts with budget allocations).
    • The process for reducing, ceasing, or resuming LGF payments when an authority fails to comply or later complies.
    • Alternative methods of apportionment and hearings for LGF allocations in certain counties.

  • Interaction with local funding and compliance

    • If a local authority is noncompliant or fails to certify, LGF payments can be reduced or withheld.
    • Money withheld is redirected to state general revenue or to safeguarded accounts (e.g., Ohio highway and transportation safety fund) for purposes consistent with public safety and transportation.

Who is affected

  • State and local public employees and elected/appointed officials covered by health plans
  • Local authorities, including municipal corporations, townships, counties, and village entities that administer LGF funds
  • School districts, fire districts, and other subdivisions that participate in the undivided local government fund
  • Tax commissioner, attorney general, county auditors, treasurers, and budget commissions involved in LGF administration and compliance enforcement

Procedural and timeline aspects

  • Certification deadlines:
    • Local authorities: Annually by the last day of April (certify GRS prohibition compliance to the attorney general)
    • Attorney General: Annually by June 15 to provide noncompliant lists to the tax commissioner
  • Effective date and transitional notes:
    • Prohibition applies to policies/contracts/plans entered into on or after the effective date of the section; existing plans may be treated under the transition rules, depending on specific language in the act.
  • Funding consequences:
    • LGF adjustments (including possible reductions) flow monthly, with detailed procedures for notifying county auditors/treasurers and for remitting funds to state or transportation accounts.
    • The Ohio highway and transportation safety fund is created to collect reductions and manage them for transportation safety purposes.
  • Oversight and reporting:
    • Office of Collective Bargaining established to handle related bargaining issues and reporting to the governor/general assembly.

Potential impact

  • Financial: Local governments could face reduced LGF payments if noncompliant, potentially increasing pressure on budgets for municipalities, counties, and townships.
  • Service delivery: Reductions in LGF funds could affect current operating expenses and funding for local programs, including fire/police/EMT services.
  • Administrative: Local governments must implement certification processes and adjust health plan offerings to ensure GRS coverage is excluded, aligning with the prohibition.
  • Policy alignment: Centers state policy on GRS coverage in public employee benefits and coordinates with Medicaid policy.

Note: This summary reflects the introduced text and its stated provisions. Final language and any enacted changes could alter scope, definitions, timelines, or enforcement mechanisms.

Compiled from official sources — confirm details with the bill’s official record.

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