Report Title:

PEHF; QUEST; Cooperative Purchasing Agreement

 

Description:

Allows the public employees health fund to enter into a cooperative purchasing agreement with the DHS Medicaid programs including QUEST, and other entities, including other similar programs of other states.

 

HOUSE OF REPRESENTATIVES

H.B. NO.

1061

TWENTY-FIRST LEGISLATURE, 2001

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to the public employees health fund.

 

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

SECTION 1. The legislature finds that the public employees health fund expends a large amount of money to pay for its health benefit plans for public employees, including those covered by employee organization benefit plans. At the same time, the department of human services operates two programs under Medicaid that provide health care to eligible residents: the fee-for-service Medicaid program, and the QUEST managed care program. The department of human services similarly expends a large amount of money for these two programs for coverage that is very similar, if not almost identical to, the coverage paid for by the public employees health fund.

The purpose of this Act is to authorize the public employees health fund to enter into a cooperative purchasing agreement with the department of human services Medicaid programs, and other similar entities, including similar programs of other states.

SECTION 2. Chapter 87, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§87-    Cooperative purchasing agreements. The board of trustees is authorized to have the fund enter into a cooperative purchasing agreement with the department of human services with regard to the department's operation of the fee-for-service Medicaid program and/or QUEST managed care program, or any other governmental or private entity, in order to capitalize on the benefits of increased economies of scale and purchasing leverage in the provision of any benefits provided by the fund under this chapter. The board of trustees, in its discretion, may determine the appropriateness of entering into similar cooperative purchasing agreements with other similar entities, including those from other states."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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