Report Title:

Employer-Union Health Benefits Trust Fund; Employer Contribution Cap; Retirees

Description:

Requires the employer contribution cap on monthly contributions for health benefits plans for retirees to be adjusted annually, beginning July 1, 2002. (SD1)

THE SENATE

S.B. NO.

762

TWENTY-SECOND LEGISLATURE, 2003

S.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to the employer-union health benefits trust fund.

 

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

SECTION 1. Section 87A-33, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

"(c) The base [composite] monthly contribution shall be adjusted annually, beginning July 1, [2004.] 2002. The adjusted base [composite] monthly contribution for each new plan year (July 1 until June 30) shall be calculated by increasing or decreasing the base [composite] monthly contribution in effect through the end of the previous plan year by the percentage increase or decrease in the medicare part B premium rate for those years, which percentage shall be calculated by dividing the medicare part B premium rate in effect at the beginning of the new plan year by the rate in effect [through the end] at the beginning of the previous plan year.

As used in this subsection, "medicare part B premium rate" means the rate published in the Federal Register each year on November 1 or on the business day closest to November 1 of each year after the medicare part B premium rate has been established by the Secretary of Health and Human Services and approved by the United States Congress."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

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