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.