STAND. COM. REP. NO.394

Honolulu, Hawaii

, 2001

RE: H.B. No. 1059

H.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Labor and Public Employment, to which was referred H.B. No. 1059 entitled:

"A BILL FOR AN ACT RELATING TO THE PUBLIC EMPLOYEES HEALTH FUND,"

begs leave to report as follows:

The purpose of this bill is to change the method the Public Employees Health Fund uses to determine employer contributions for union sponsored health coverage, referred to as the amounts "ported" to the union plans by the health fund.

Your Committee finds that the Public Employees Health Fund is experiencing higher employer costs. One reason for the higher costs is due to the method the health fund uses in determining employer contributions for union sponsored health coverage. Currently, the health fund uses the participating union with the "highest enrollment" as the basis for determining employer contributions. This bill would reduce health fund (employer) costs by using the union with the "least costly" benefit plan.

Your Committee has amended the bill by allowing rate credits from employee contributions to non-union plans to be used to improve the soundness of the plans, which may include carrying out comprehensive financial audits.

Your Committee has also amended the bill to change the basis for determining the amount ported to the union plans by porting an amount based on the fund's most cost effective benefit plan.

As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1059, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1059, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Labor and Public Employment,

____________________________

TERRY NUI YOSHINAGA, Chair