STAND. COM. REP. NO. 595

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1288
                                        S.D. 1




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 S.B.
No. 1288 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 permit the Board of Trustees
of the Public Employees Health Fund to contract for more than one
type of benefit plan for medical, drug, vision, and dental
benefits.

     Your Committee finds that current law authorizes the Board
of the Public Employees Health Fund to contract for only one
statewide plan for each of its medical, drug, dental, and vision
benefit plans.  This bill will provide flexibility to contract
for more than one benefit plan per benefit category, thereby
fostering more competition to provide the State quality benefit
plans with the best value.

     Your Committee has made technical, nonsubstantive amendments
for the purposes of style.

     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 S.B. No.

 
a                                                     SB1288 SD1
 
 
 
                                   STAND. COM. REP. NO. 595
                                   Page 2


1288, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as S.B. No. 1288, S.D. 1.

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



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
a                                                     SB1288 SD1