REPORT TITLE:
Public Employees Health Fund


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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           1294
THE SENATE                              S.B. NO.           S.D. 1
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 87-27, 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.