Complex sentence: This organization established central and bureaucratic insurance offices on the federal, and in some cases the state level to actually administer the program whose benefits kicked in to replace the sickness insurance program as of the 14th week.
Split into simpler sentences: This organization established central and bureaucratic insurance offices on the Federal, and in some cases the State level to perform the actual administration. The program kicked in to replace the sickness insurance program as of the 14th week.