THE SENATE

S.B. NO.

932

TWENTY-NINTH LEGISLATURE, 2017

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND EXEMPTION FROM THE INSURANCE CODE.

 

 

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

 


     SECTION 1.  The legislature finds that under current law, the Hawaii employer-union health benefits trust fund (EUTF) is unable to conduct business in the manner most cost-efficient to both public employers and employees.  A revision to the EUTF's enabling legislation is necessary to clarify that the EUTF board of trustees has final authority to design the benefit plans offered by the EUTF and that health insurance providers who may contract with the EUTF are exempt from the mandatory benefit requirements of the insurance code.

     SECTION 2.  Section 87A-16, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§87A-16[]]  Health benefits plan; carriers.  (a)  The board shall establish the health benefits plan or plans, which shall be exempt from the [minimum group] mandatory benefit requirements of [chapter 431] title 24 unless otherwise specified.  The board may contract with insurers, as defined in section 431:1-202, mutual benefit societies, as defined in section 432:1-104, and carriers, as defined in sections 432D-1 and 432G-1, each of which shall be exempt from the mandatory benefits as required by chapters 431, 432, 432D, and 432G.

     (b)  The board may contract for health benefits plans or provide health benefits through a noninsured schedule of benefits."

     SECTION 3.  Section 87A-19, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The board shall establish the medical, hospital, or surgical benefits plan or plans, which shall be exempt from the [minimum group] mandatory benefit requirements of [article 10A of chapter 431] title 24 unless otherwise specified.  The board may contract with insurers, as defined in section 431:1-202, mutual benefit societies, as defined in section 432:1-104, and carriers, as defined in section 432D-1 and 432G-1, each of which shall be exempt from the mandatory benefits as required by chapters 431, 432, 432D, and 432G.  The medical, hospital, or surgical benefits plan or plans shall provide, pay for, arrange for, or reimburse the cost of medical, hospital, or surgical services, and may include prescribed hospital in-patient and out-patient service and medical benefits."

     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.

 

INTRODUCED BY:

_____________________________

 

 

BY REQUEST

 


 


 

Report Title:

Hawaii Employer-Union Health Benefits Trust Fund (EUTF); Insurance

 

Description:

Expands the exemption of the EUTF from the insurance code for the design of benefit plans offered by the EUTF.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.