Public employees health fund

Authorizes the board of trustees of the public employees health
fund to use reimbursements and rate credits to benefit
identifiable employee-beneficiaries.  (HB1041 HD2)

HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Section 87-3, Hawaii Revised Statutes, is
 2 amended by amending subsection (a) to read as follows:
 3      "(a)  The fund shall be used for the purpose of providing
 4 employee-beneficiaries and dependent-beneficiaries with a health
 5 benefits plan and a long-term care benefits plan; provided that
 6 the fund, including rate credits or reimbursements from any
 7 carrier or self-insured plan or any earning or interest derived
 8 therefrom, may be used to stabilize health benefits plan or long-
 9 term care benefits plan rates, and with approval of the
10 legislature through appropriation of funds for other expenses
11 necessary to effectuate these purposes.  Notwithstanding any law
12 to the contrary, any rate credit or reimbursement from any
13 carrier or self-insured plan in excess of funds used to stabilize
14 health benefits plan or long-term care benefits plan costs, and
15 for other expenses authorized by the legislature or any earning
16 or interest derived therefrom [shall]:
17      (1)  Shall be returned to the State or the county for
18           deposit into the appropriate general fund if the moneys
19           are returned from:

Page 2                                                     1041
                                     H.B. NO.           H.D. 2

 1     [(1)] (A)  A plan that provides health benefits to retirees,
 2                or the surviving spouses of deceased retirees, or
 3                employees killed in the performance of their duty
 4                whose coverage is financed in whole or in part by
 5                the State or by the county; or
 6     [(2)] (B)  A plan that provides health benefits to employees;
 7                provided that the amount returned to the general
 8                fund shall be only that portion financed by the
 9                State or by the county on behalf of the
10                employee[.]; and
11      (2)  As authorized by the board, may be:
12           (A)  Used to improve the benefits of health benefits
13                plans described in section 87-22.3(1);
14           (B)  Returned to identifiable employee-beneficiaries
15                who participated in ascertainable years to create
16                the rate credit or reimbursement or to any other
17                employee-beneficiaries; provided that where a
18                carrier reimburses the fund for any premium
19                previously paid as a dividend or by other means,
20                the fund shall reimburse employee-benefits at the
21                applicable rate of the employee's contribution
22                plus the amount the employer contributed for the
23                employee in lieu of a wage increase; or

Page 3                                                     1041
                                     H.B. NO.           H.D. 2

 1           (C)  Used to reduce the employee-beneficiary's
 2                respective share of monthly contributions to a
 3                health benefits plan."
 4      SECTION 2.  Statutory material to be repealed is bracketed.
 5 New statutory material is underscored.
 6      SECTION 3.  This Act shall take effect upon its approval.