Report Title:

Health Insurance; Temporary Insurance for Unemployed Persons

Description:

Provides temporary health insurance for unemployed persons who lose their health insurance due to an economic emergency.

HOUSE OF REPRESENTATIVES

H.B. NO.

877

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO TEMPORARY HEALTH INSURANCE FOR UNEMPLOYED PERSONS.

 

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

SECTION 1. The legislature finds that the terrorist attacks in New York, Virginia, and Pennsylvania on September 11, 2001, have significantly raised global concerns about the safety of air travel. Because Hawaii is an island destination, air travel is the primary means of arrival for the large majority of Hawaii's visitors. The current concern with air travel has negatively impacted tourism, the State's primary industry, and the ripple effect has been felt in all sectors of our economy.

The legislature further finds that since the events of September 11, the ongoing war on terrorism and potential future confrontations with other nations or groups that are violently opposed to the United States may impact heavily on the citizens and resources of this State. It is therefore incumbent upon the State to ensure that contingencies are in place should an attack on the United States or some other event cause hardship to Hawaii's residents.

A downturn in our visitor industry caused by a future attack on the United States may result in significant numbers of Hawaii residents becoming victims of employment furloughs, layoffs, reduced work hours, and terminations. While these persons may obtain some financial relief through unemployment insurance benefits, they may not, for financial or other reasons, be able to continue their health care insurance coverage.

Accordingly, purpose of this Act is to help unemployed persons to maintain health care coverage by providing a temporary program of health insurance.

This Act will take effect, however, only if the governor issues a proclamation declaring an economic emergency for any period during the interim between the 2003 and 2004 regular sessions of the legislature. An economic emergency is one in which there has been a two hundred per cent statewide increase in initial claims filed for unemployment benefits, other than claims resulting from a labor dispute, when compared with initial claims filed in the corresponding week of the preceding calendar year.

SECTION 2. There is established the temporary health insurance for unemployed persons program to provide temporary health care coverage for persons who have lost employment. To be eligible to participate in this program, the person shall:

(1) Have lost the person's health insurance as a result of a furlough, layoff, reduced work hours, or termination of employment after the date an economic emergency has occurred, as specified in the governor's proclamation issued pursuant to section 6;

(2) Not be eligible for any health insurance coverage from another source; and

(3) Agree to pay for the costs of the person's coverage premium.

This program shall have a benefit package similar to the basic benefits provided in the department of human services' QUEST-Net program and shall be administered by the department of human services.

SECTION 3. If a person is entitled to continue health insurance coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act, the person may apply for reimbursement of payments made for the purpose of continuing the person's health insurance medical and prescription drug coverage up to the following monthly amounts:

Single: $125.00

Family: $315.00

The total reimbursement a person may collect under this section shall be for three months of coverage from the effective date of the individual's loss of coverage.

A person is eligible for reimbursement of payments if:

(1) The person became unemployed, furloughed, or suffered a reduction in work hours, which has resulted in the loss of the person's employment related group health insurance that occurred after the date an economic emergency has occurred, as specified in the governor's proclamation issued pursuant to section 6, and is ineligible for any other insurance through the person's spouse or parents;

(2) The person is entitled to continue health insurance coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act;

(3) The person is not eligible for any other employment related group health coverage reimbursement or subsidy aimed to assist the unemployed person in continuing the person's group health insurance coverage;

(4) The person certifies in writing the amount paid by the person for prescription and medical coverage for the three-month period beginning on the effective date of the person's loss of coverage; and

(5) The person's employer certifies in writing that the person is not entitled to any other subsidy offered by the employer or the employer's health insurer.

SECTION 4. There is appropriated out of the general funds of the State of Hawaii the sum of $1,587,600, or so much thereof as may be necessary for fiscal year 2003-2004, and the sum of $1,360,800, or so much thereof as may be necessary for fiscal year 2004-2005, for administration of the program established by this Act.

The sums appropriated shall be expended by the department of human services for the purposes of this Act; provided that the appropriation authorized by this section shall be made only if the governor issues a proclamation as provided in section 6 before 5:00 p.m. on January 13, 2004.

SECTION 5. There is appropriated out of the general funds of the State of Hawaii the sum of $2,000,000, or so much thereof as may be necessary for fiscal year 2003-2004, for the reimbursement of payments made under this Act.

The sum appropriated shall be expended by the department of labor and industrial relations for the purposes of this Act; provided that the appropriation authorized by this section shall be made only if the governor issues a proclamation as provided in section 6 before 5:00 p.m. on January 13, 2004.

SECTION 6. This Act shall take effect only if the governor issues a proclamation declaring an economic emergency for any period between May 2, 2003, to January 13, 2004, if the governor finds that, during this time period, there has been a two hundred per cent statewide increase in initial claims filed for unemployment benefits, other than claims resulting from a labor dispute, when compared with initial claims filed in the corresponding week of the preceding calendar year; provided that this Act shall be repealed on January 14, 2004.

INTRODUCED BY:

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