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THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE PUBLIC EMPLOYEES HEALTH FUND.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 87-22, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "87-22  Determine health benefits plan; contract with
 
 
 5 benefits plan[,] or plans, which shall be excepted from the
 
 6 minimum group requirements of chapter 431.  The health benefits
 
 7 plan shall provide, pay for, arrange for, or reimburse the cost
 
 8 of hospitalization, surgery, medical, dental treatment, and care,
 
 9 and may include prescribed drugs, medicines, prosthetic
 
10 appliances, hospital in-patient and out-patient service benefits,
 
11 vision treatment and care, medical, and dental [indemnity]
 
12 benefits.
 
13      (b)  The board may contract for the following health
 
14 benefits plans; provided that benefits provided under any
 
15 respective plan shall be equally available to all employee-
 
16 beneficiaries and dependent-beneficiaries selecting the plan
 
17 regardless of age, as provided for below:
 
18      (1)  [A statewide] An indemnity benefit plan or plans under
 
19           which a carrier agrees to pay certain sums of money not
 

 
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 1           in excess of the actual expenses incurred for health
 
 2           services.
 
 3      (2)  A [statewide] service benefit plan or plans under which
 
 4           payment is made by a carrier under contracts with
 
 5           physicians, hospitals, or other providers of health
 
 6           services, or, under certain conditions, payment is made
 
 7           by a carrier to an employee-beneficiary.
 
 8      (3)  Health maintenance organization plans, which provide or
 
 9           arrange health services for members on a prepaid basis,
 
10           with professional services provided by physicians
 
11           practicing individually or as a group in a common
 
12           center or centers.
 
13      (4)  Plans to offer dental benefits through [a statewide] an
 
14           indemnity plan[,] or plans, a [statewide] service
 
15           benefit plan[,] or plans, dental maintenance
 
16           organization plans, or combinations thereof.
 
17      (5)  Plans to offer prescription drug benefits through [a
 
18           statewide] an indemnity plan[,] or plans, a [statewide]
 
19           service benefit plan[,] or plans, health maintenance
 
20           organization plans, or combinations thereof.
 
21      (6)  Plans to offer vision care benefits through [a
 
22           statewide] an indemnity plan[,] or plans, a [statewide]
 
23           service benefit plan[,] or plans, health maintenance
 

 
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 1           organization plans, or combinations thereof.
 
 2      (7)  A noninsured schedule of benefits similar to any of the
 
 3           schedule of benefits set forth in the health benefits
 
 4           plans authorized in paragraphs (1) to (6)."
 
 5      SECTION 2.  Statutory material to be repealed is bracketed.
 
 6 New statutory material is underscored.
 
 7      SECTION 3.  This Act shall take effect upon its approval.
 
 8 
 
 9                           INTRODUCED BY:  _______________________
 

 
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