Report Title:

Employer-Union Health Benefits Trust Fund; Cost Maintenance

Description:

Requires the board of trustees of the employer-union health benefits trust fund to endeavor to maintain costs at current levels when renegotiating contracts for fiscal year 2003-2004 so as to give primary consideration to the financial impact on public employers. (SD1)

THE SENATE

S.B. NO.

645

TWENTY-SECOND LEGISLATURE, 2003

S.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to Health Fund.

 

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

SECTION 1. The legislature finds that the State and counties are facing very difficult financial situations and are reviewing ways to decrease costs in some areas and maintain current levels of funding in other areas. The legislature is also aware that expenditures for health benefits for public employees and retirees have increased rapidly in the past and may do so in the future.

The purpose of this Act is to provide direction to the board of trustees of the Hawaii employer-union health benefits trust fund to give proper consideration of the financial situation of the public employers when contracting for plans.

SECTION 2. Section 87A-15, Hawaii Revised Statutes, is amended to read as follows:

"[[]§87A-15[]] Administration of the fund. The board shall administer and carry out the purpose of the fund. Health and other benefit plans shall be provided at a cost affordable to both the public employers and the public employees[.]; provided, however, that for plans contracted for fiscal year 2003-2004, the board shall give primary consideration to the financial impact the premiums for the plans will have on public employers and shall endeavor to contract for plans that will not result in increased employer costs. The board shall renegotiate the contracts to ensure that these provisions are met."

SECTION 3. If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.