STAND. COM. REP. NO.3286

Honolulu, Hawaii

, 2002

RE: H.B. No. 2638

H.D. 2

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2638, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII LONG-TERM CARE FINANCING ACT,"

begs leave to report as follows:

The purpose of this measure is to provide a universal and affordable system of providing long-term care for Hawaii residents.

Specifically, this bill enacts the Hawaii long-term care financing Act and creates the Hawaii long-term care benefits fund to hold the premiums and to pay benefits. The bill establishes a board of trustees to administer the fund.

The bill further establishes, beginning on July 1, 2003, a five-member interim board of trustees to be appointed by the Governor, to design a tax-based financing system, determine the amount and means of collection of a tax and the nature and amount of benefits, recommend a third party administrator, and conduct research to ensure the financing scheme is not preempted by or in violation of the Health Insurance Portability and Accountability Act or the Employee Retirement Income and Security Act. The bill requires the interim board of trustees to report to the Legislature before the convening of the Regular Session of 2003 on a financing plan.

The bill further appropriates a blank amount for fiscal year 2002-2003 for the interim board to carry out its work and to report findings and recommendations, including necessary proposed legislation, to the Legislature before the convening of the Regular Session of 2003.

Your Committee finds that there is a public need for an affordable and universal state-sponsored long-term care system and that this measure is an important first step in developing that system.

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. 2638, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

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

____________________________

BRIAN T. TANIGUCHI, Chair