Report Title:

Prepaid Health Care Act.

Description:

Removes language of Act 199, SLH 1978, from the Prepaid Health Care Act, which requires collectively bargained plans to provide coverage at least equivalent to that prescribed by chapter 393, HRS. The United States District Court, District of Hawaii, declared that the 1978 amendments were preempted by the Employee retirement Income Security Act of 1974.

THE SENATE

S.B. NO.

2967

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO THE PREPAID HEALTH CARE ACT.

 

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

SECTION 1. The purpose of this Act is to remove the language of Act 199, Session Laws of Hawaii 1978, from the Prepaid Health Care Act, which required collectively bargained plans to provide coverage at least equivalent to that prescribed by chapter 393, HRS. The United States District Court, District of Hawaii, declared that the 1978 amendments were preempted by the Employee Retirement Income Security Act of 1974 and, thus, were invalid and unenforceable.

SECTION 2. Section 393-2, Hawaii Revised Statutes, is amended to read as follows:

"§393-2 Findings and purpose. The cost of medical care in case of sudden need may consume all or an excessive part of a person's resources. Prepaid health care plans offer a certain measure of protection against such emergencies. It is the purpose of this chapter in view of the spiraling cost of comprehensive medical care to provide this type of protection for the employees in this State. Although a large segment of the labor force in the State already enjoys coverage of this type either by virtue of collective bargaining agreements, employer-sponsored plans, or individual initiative, there is a need to extend that protection to workers who at present do not possess any or possess only inadequate prepayment coverage.

This chapter shall not be construed to interfere with or diminish any protection already provided pursuant to collective bargaining agreements or employer-sponsored plans that is more favorable to the employees benefited thereby than the protection provided by this chapter or at least equivalent thereto[, provided that presently existing collective bargaining agreements shall not be affected by the provisions of this section]."

SECTION 3. Section 393-19, Hawaii Revised Statutes, is amended to read as follows:

"§393-19 Freedom of collective bargaining. (a) In addition to the policy stated in section 393-2, nothing in this chapter shall be construed to limit the freedom of employees to bargain collectively for different prepaid health care coverage[, if the protection provided by the negotiated plan is more favorable to the employees benefited than the protection provided by this chapter or at least equivalent thereto,] or for a different allocation of the costs thereof. A collective bargaining agreement may provide that the employer oneself undertakes to provide the health care specified in the agreement.

(b) If the employees rendering particular types of services are not covered by the health care provisions of the applicable collective bargaining agreements to which their employer is a party, the provisions of this chapter shall be applicable with respect to them. An employer or group of employers shall be deemed to have complied with the provisions of this chapter if they undertake to provide health care services pursuant to a collective bargaining agreement and the services are available to all other employees not covered by such agreement."

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

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BY REQUEST