STAND. COM. REP. NO.948

Honolulu, Hawaii

, 2003

RE: S.B. No. 312

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 312, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII PUBLIC EMPLOYEES HEALTH FUND,"

begs leave to report as follows:

The purpose of this measure is to require that the health benefit plans that the Public Employees Health Fund (Fund) offers to retirees include medical benefits, prescription drug benefits, vision care benefits, and dental benefits.

Furthermore, this measure removes the Fund's authority to determine the type of plans to be made available, the design of the plans, and the delivery of the plan services.

Your Committee finds that this measure effectively repeals Act 89, Session Laws of Hawaii 2001, to restore benefits to retirees to what they were prior to the effective date of Act 89. Although Act 89 was supposed to give the Fund greater flexibility in regard to health plans offered to retirees, your Committee, upon careful consideration, realizes that health benefits to retirees under Act 89 may have been significantly diminished.

Your Committee has amended this measure by clarifying that the requirement of the health benefits plan to reimburse the cost of hospitalization, surgery, medical, dental treatment, and care shall, rather than may, include prescribed drugs, medicines, prosthetic appliances, hospital in-patient and out-patient service benefits, vision treatment and care, medical, and dental benefits.

Your Committee also made technical nonsubstantive amendments for purposes of clarity.

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 S.B. No. 312, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 312, S.D. 2.

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

____________________________

BRIAN T. TANIGUCHI, Chair