Report Title:

Employer-Union Health Benefits Trust Fund

 

Description:

Requires the Employer-Union Health Benefits Trust Fund's Board of Trustees to establish a Flexible health benefit option plan to enable retirees and their spouses to select levels of health benefits coverage under separate option categories. Allows employee-beneficiaries whose spouses are not public employees or retired public employees to enroll in individual plans or family plans as the need arises.

THE SENATE

S.B. NO.

2317

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to public employee health benefits.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 87A, Hawaii Revised Statutes, is amended by adding a new section to part III to be appropriately designated and to read as follows:

"87A-   Other health plan options; required. (a) In addition to the health benefits offered under this part, the board shall offer a flexible health benefit option plan which enables a retired employee-beneficiary to select types and levels of health benefits coverage tailored to the retired employee-beneficiary's needs. At a minimum, the flexible health benefit option plan shall provide:

(1) As separate option categories, medical, drug, dental, vision, long-term care, and group life insurance at the same level and cost of the coverages provided under sections 87A-16 to 87A-18;

(2) Additional health benefit option categories that are not provided by the board under sections 87A-16 to 87A-18;

(3) The ability to increase or decrease the level of health benefit coverage provided under sections 87A-16 to 87A-18 for any or all option categories;

(4) That the cost to the State or county for the flexible health benefit option plan shall not exceed the aggregate amount the State or county would contribute had the retired employee-beneficiary not participated in the flexible health benefit option plan;

(5) That the retired employee-beneficiary who elects to participate in the flexible health benefit option plan:

(A) May allocate the applicable aggregate employer contribution amount under sections 87A-33 to 87A-37, without restriction, among the various option categories selected; and

(B) Shall pay for all costs of the flexible option plan exceeding the applicable aggregate employer contribution.

(b) The board shall adopt rules in accordance with chapter 91 regarding open enrollment periods and to effectuate this section."

SECTION 2. Section 87A-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

""Flexible health benefit option plan" means a health benefits plan that enables employee-beneficiaries to select levels of health benefit coverage under separate option categories which include but are not limited to medical, drug, dental, vision, and long-term care."

SECTION 3. Section 87A-21, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The board shall establish eligibility criteria to determine who can qualify as an employee-beneficiary, dependent-beneficiary, or qualified-beneficiary, consistent with [the provisions of] this chapter[.]; provided that the board shall allow an employee-beneficiary whose spouse is not a public employee or retired employee-beneficiary with the option to:

(1) Enroll their spouse in an individual health plan if the employee-beneficiary has no unmarried, dependent children on the employee-beneficiary's health benefits plan; or

(2) Enroll in a family health plan if the employee-beneficiary has at least one dependent, unmarried child that is to be covered under the employee-beneficiary's health benefits plan."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

INTRODUCED BY:

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