STAND. COM. REP. NO.1379

Honolulu, Hawaii

, 2003

RE: H.B. No. 50

H.D. 2

S.D. 1

 

 

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 H.B. No. 50, H.D. 2, 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 ensure the provision of specific health benefits for public employee retirees.

Specifically, this measure, in effect, repeals Act 89, Session Laws of Hawaii 2001, by reinstating required medical, prescription drug, vision care, and adult dental benefits, as they existed prior to July 1, 2001, to the health benefit plans of public retirees and requires the public employer to make contributions for those benefits to the public employees health fund.

In addition, with regard to the supplemental health benefits plan to federal medicare, this measure makes it mandatory for the public employees health fund to make the contributions for the voluntary medical insurance coverage under federal medicare. This measure also requires the fund to fully reimburse employee-beneficiaries for the actual cost of the federal medicare plan.

Additionally, this measure makes amendments to the Hawaii employer-union health benefits trust fund, established through Act 88, Session Laws of Hawaii 2001, by changing the public employer's contribution amount for the health benefits plan supplemental to medicare from $50 a month to an amount not less than the medicare part B premium. Furthermore, this measure requires the trust fund to fully reimburse retirees for the actual cost of the medicare part B medical insurance plan.

Your Committee finds that the enactment of Act 88, relating to the Hawaii employer-union health benefits trust fund, which utilizes a different mode of delivery for health benefits, does not negate the State's basic moral obligation to provide health benefits coverage to public retirees.

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 H.B. No. 50, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

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

____________________________

BRIAN T. TANIGUCHI, Chair