STAND. COM. REP. NO. 1436

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1042
                                        H.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 1042, H.D. 2, entitled:

     "A BILL FOR AN ACT RELATING TO THE PUBLIC EMPLOYEES HEALTH
     FUND,"

begs leave to report as follows:

     The purpose of this bill is to allow the board of trustees
of the public employees health fund to contract for more than one
type of health benefits plan for medical, drug, vision, and
dental benefits, and to repeal the law requiring these plans to
be offered on a statewide basis.

     Your Committee finds that providing the board of trustees of
the public employees health fund with the flexibility to contract
for more than one type of health benefits plan for medical, drug,
vision, and dental benefits could increase the value of the
benefits offered to plan subscribers by fostering greater
competition among providers of health care services.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1042, H.D. 2, and recommends that it pass Third Reading.


 
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                                   STAND. COM. REP. NO. 1436
                                   Page 2


                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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