1294
THE SENATE                              S.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   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 87-27, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "87-27  Supplemental plan to federal Medicare.  Any other
 
 4 provision of this chapter notwithstanding, the board of trustees
 
 5 shall establish, effective July 1, 1996, a health benefit plan
 
 6 which takes into account benefits available to an employee-
 
 7 beneficiary and spouse under the federal Medicare plan, subject
 
 8 to the following conditions:
 
 9      (1)  There shall be no duplication of benefits payable under
 
10           federal Medicare but the plan so established by the
 
11           board shall be supplemental to the federal Medicare
 
12           plan.
 
13      (2)  The contribution for voluntary medical insurance
 
14           coverage under federal Medicare may be paid by the
 
15           fund, in such manner as the board shall specify, in the
 
16           case of an employee-beneficiary who is a retired
 
17           employee, and spouse while the employee-beneficiary is
 
18           living, including members of the old pension system and
 
19           after death the employee-beneficiary's spouse provided
 

 
a                                                     BUF-34(99)
Page 2                                                     1294
                                     S.B. NO.           
                                                        
                                                        

 
 1           the spouse qualifies as an employee-beneficiary;
 
 2           provided that the counties, through their respective
 
 3           departments of finance, shall reimburse the fund for
 
 4           any contributions made for county employee-
 
 5           beneficiaries under this paragraph.
 
 6      (3)  The benefits available under the plan, when taken
 
 7           together with the benefits available under the federal
 
 8           Medicare plan shall, as nearly as is possible,
 
 9           approximate the benefits available under the plans set
 
10           forth in section87-22.  If, for any reason, a situation
 
11           develops where the benefits available under the
 
12           supplemental plan and the federal Medicare plan
 
13           substantially differ from those that would otherwise be
 
14           available, the board is authorized to correct this
 
15           inequity to assure substantial equality of benefits.
 
16      (4)  [Any employee-beneficiary or dependent-beneficiary who
 
17           is enrolled in the federal Medicare plan shall
 
18           participate in the supplemental plan to be set up
 
19           hereunder, and any employee-beneficiary or dependent-
 
20           beneficiary eligible for, but not enrolled in the
 
21           federal Medicare plan, may participate in such other
 
22           plans as are set forth in section 87-22.]
 
23           Notwithstanding any other law to the contrary, all
 

 
a                                                     BUF-34(99)
Page 3                                                     1294
                                     S.B. NO.           
                                                        
                                                        

 
 1           employee-beneficiaries or dependent-beneficiaries who
 
 2           are eligible to enroll in the federal Medicare Part B
 
 3           medical insurance plan shall enroll in that federal
 
 4           plan as a requirement to receive the contributions and
 
 5           to participate in the employee benefit plans described
 
 6           in this chapter.  This provision shall pertain to
 
 7           retired employees and their spouses and the surviving
 
 8           spouses of deceased retirees and employees killed in
 
 9           the performance of duty.
 
10      (5)  The board of trustees shall determine which employee-
 
11           beneficiaries and dependent-beneficiaries, who are not
 
12           enrolled in the federal Medicare Part B medical
 
13           insurance plan, may participate in such other plans as
 
14           are set forth in section 87-22."
 
15      SECTION 2.  Statutory material to be repealed is bracketed.
 
16 New statutory material is underscored.
 
17      SECTION 3.  This Act shall take effect upon its approval.
 
18 
 
19                           INTRODUCED BY:  _______________________
 

 
a                                                     BUF-34(99)