Public Employees Health Fund

Requires state and county retired employees and their spouses to
enroll in the federal Medicare Part B insurance program.  (SD1)

THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                      A  BILL  FOR  AN  ACT



   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

Page 2                                                     1294
                                        S.B. NO.           S.D. 1

   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 section 87-22.  If, for any reason, a
  11            situation develops where the benefits available under
  12            the 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

Page 3                                                     1294
                                        S.B. NO.           S.D. 1

   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 paragraph 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; and
  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.