The director may:

(1)  Contract with the federal government or another unit of government to ensure coordination of the program;

(2)  Apply for any available federal funding for the program;

(3)  Undertake, directly or through contracts with other persons or entities, studies or demonstration programs to develop awareness of the benefits of this chapter; and

(4)  Formulate general policy and adopt rules and regulations that are reasonably necessary to administer this chapter, including regulations establishing a reinsurance program to mitigate the impact of high-risk individuals on health insurance rates.