REPORT TITLE:
PEHF; Audit Union Health Plans


DESCRIPTION:
Empowers the board of the public employees health fund to
annually audit health benefits plans offered by employee
organizations.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1871
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE HAWAII PUBLIC EMPLOYEES HEALTH FUND.



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

 1      SECTION 1.  Section 87-22.3, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "�87-22.3  Determination of health benefits plans[.]; audits
 
 4 of employee organization health benefits plans.  Pursuant to
 
 5 section 87-4, the board of trustees shall provide health benefits
 
 6 to employee-beneficiaries in the following manner:
 
 7      (1)  For those employee-beneficiaries who are not
 
 8           participating in a health benefits plan of an employee
 
 9           organization (hereafter "nonparticipating employee-
 
10           beneficiaries"), the board of trustees shall establish
 
11           health benefits plans and the requirements for
 
12           eligibility under the health benefits plans.  Any rate
 
13           credit or reimbursement from any carrier derived from
 
14           employee-beneficiary rate contributions to health
 
15           benefits plans of nonparticipating employee-
 
16           beneficiaries or interest derived therefrom may be used
 
17           to improve the respective health benefits plans of
 
18           nonparticipating employee-beneficiaries or to reduce
 
19           the employee-beneficiary's respective share of monthly
 

 
Page 2                                                     1871
                                     H.B. NO.           
                                                        
                                                        

 
 1           contributions to a health plan; or
 
 2      (2)  For employee-beneficiaries who participate in the
 
 3           health benefits plan of an employee organization, the
 
 4           board of trustees shall pay a monthly contribution for
 
 5           each employee-beneficiary, in the amount provided in
 
 6           section 87-4(a), or the actual monthly cost of the
 
 7           coverage, whichever is less, towards the purchase of
 
 8           health benefits under the health benefits plan of an
 
 9           employee organization.  In order to ensure the
 
10           financial integrity and cost effectiveness of any
 
11           health benefits plan of an employee organization, the
 
12           board shall annually audit each health benefits plan
 
13           offered by an employee organization.  The costs of the
 
14           audits shall be borne by the fund."
 
15      SECTION 2.  Statutory material to be repealed is bracketed.
 
16 New statutory material is underscored.
 
17      SECTION 3.  This Act shall take effect upon its approval.
 
18 
 
19                              INTRODUCED BY:______________________