Report Title:

State Health Insurance Plan (SHIP); Coverages; Reactivation

Description:

Requires SHIP to cover working persons who are not covered by any group medical plan and are not eligible for Medicaid or Medicare; allows SHIP to charge a premium based on income; reactivates SHIP for limited coverage; makes appropriation to SHIP.

THE SENATE

S.B. NO.

912

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO THE STATE HEALTH INSURANCE PLAN.

 

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

SECTION 1. The legislature find that the state health insurance program Act (SHIP) under chapter 431N, Hawaii Revised Statutes, has not been repealed, although the QUEST program, which is a Medicaid waiver program, has substituted for SHIP. The legislature further finds that the QUEST program still leaves a gap group of persons who are not covered by any health insurance. These are individuals who work and yet are not covered by any group medical insurance plan and are not eligible for coverage under medicaid, any medicaid waiver program, or medicare.

The purpose of this Act is to require SHIP to cover individuals who work and yet are not covered by any group medical insurance plan and are not covered by medicaid, medicaid waiver program, or medicare; to allow SHIP to charge them premiums according to their earned income; and to reactivate SHIP to cover these individuals.

SECTION 2. Section 431N-2, Hawaii Revised Statutes, is amended by amending the following definition of "gap group individuals" to read as follows:

""Gap group individuals" means medically uninsured persons who are residents of the State[.], including those who are working and are not eligible for coverage under medicaid, any medicaid waiver program, or Medicare."

SECTION 3. Section 431N-3, Hawaii Revised Statutes, is amended to read as follows:

"[[]§431N-3[]] State health insurance program established. (a) There is established within the department of health the state health insurance program whose goals shall be to:

(1) Subsidize health care coverage for gap group individuals[, including but not necessarily limited to outpatient primary and preventive care];

(2) Encourage the uninsured who can afford to participate in existing health plans to seek that coverage;

(3) Discourage individuals who are already adequately insured from seeking benefits under the state health insurance program;

(4) Assure that those persons who have the ability to pay for all or part of their coverage be appropriately assessed by the contractors on a sliding fee scale basis; and

(5) Ensure that the state health insurance program is affordable to gap group individuals.

The program shall be funded by legislative appropriations made to the department of health.

(b) The state health insurance plan shall assess an individual, deemed to qualify in the gap group, an amount for premiums based on a graduated rate determined by income of the individual."

SECTION 4. Beginning on the effective date of this Act, the department of health shall reactivate the state health insurance program act under chapter 431N, Hawaii Revised Statutes, solely to cover the "gap group" as defined by this Act.

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ , or so much thereof as may be necessary for fiscal year 2003-2004, for the state health insurance program for the purpose of this Act.

SECTION 6. The sum appropriated shall be expended by the department of health for the purposes of this Act.

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect upon its approval; provided that section 4 shall effect on July 1, 2003.

INTRODUCED BY:

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