Report Title:

Employer-Union Trust Fund

Description:

Amends certain health plan coverage requirements of the employer-union trust fund. Also amends representation requirements of the trust fund board.

HOUSE OF REPRESENTATIVES

H.B. NO.

2136

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO PUBLIC EMPLOYEE HEALTH BENEFITS.

 

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

SECTION 1. Chapter 87A, Hawaii Revised Statutes, is amended by adding a new section to part III to be appropriately designated and to read as follows:

"§87A- Other health plan options; required. (a) In addition to the health benefits offered under this part, the board shall offer a flexible health benefit option plan which enables a retired employee-beneficiary to select types and levels of health benefits coverage tailored to the retired employee-beneficiary's needs. At a minimum, the flexible health benefit option plan shall provide:

(1) As separate option categories, medical, drug, dental, vision, long-term care, and group life insurance at the same level and cost of the coverages provided under sections 87A-l6 to 87A-l8;

(2) Additional health benefit option categories that are not provided by the board under sections 87A-l6 to 87A-18;

(3) The ability to increase or decrease the level of health benefit coverage provided under sections 87A-16 to 87A-18 for any or all option categories;

(4) That the cost to the State or county for the flexible health benefit option plan shall not exceed the aggregate amount the State or county would contribute had the retired employee-beneficiary not participated in the flexible health benefit option plan; and

(5) That the retired employee-beneficiary who elects to participate in the flexible health benefit option plan:

(A) May allocate the applicable aggregate employer contribution amount under sections 87A-33 to 87A-37, without restriction, among the various option categories selected; and

(B) Shall pay for all costs of the flexible option plan exceeding the applicable aggregate employer contribution.

(b) The board shall adopt rules in accordance with chapter 91 regarding open enrollment periods and to effectuate this section."

SECTION 2. Section 87A-l, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

""Flexible health benefit option plan" means a health benefits plan that enables employee-beneficiaries to select levels of health benefit coverage under separate option categories which include but are not limited to medical, drug, dental, vision, and long-term care."

SECTION 3. Section 87A-5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§87A-5[]] Composition of board. The board of trustees of the employer-union health benefits trust fund shall consist of ten trustees appointed by the governor as follows:

(1) Five trustees, one of [whom] which shall be a state or county retiree and who shall represent retirees, to represent employee-beneficiaries. The trustees shall be appointed from a list of three nominees per trustee submitted by the exclusive employee representative organizations; and

(2) Five trustees to represent public employers[.]; provided that three of these trustees shall represent the State and two shall represent the counties. The two trustees representing the counties shall be made from lists of nominees submitted jointly by the counties after being compiled in a manner determined by the counties.

[Section 26-34] With the exception of requiring that each board member be subject to the advice and consent of the senate, section 26-34 shall not apply to board member selection and terms."

SECTION 4. Section 87A-lO, Hawaii Revised Statutes, is amended to read as follows:

"[[]§87A-10[]] Meetings; notice. Meetings [may be scheduled, and notice of meetings shall be provided as follows:

(1) The chairperson may call a meeting of the board at any time by giving at least six calendar days' written notice of the time and place of the meeting to all trustees; and

(2) A majority of the trustees may call a meeting of the board by giving at least ten calendar days' written notice of the time and place to all other trustees.]

shall be subject to chapter 92."

SECTION 5. Section 87A-20, Hawaii Revised Statutes, is amended to read as follows:

"[[]§87A-20[]] Selection of benefits plan carriers or third party administrators. (a) Procurement of a carrier or third-party administrator for any benefits plan shall be [exempt from] subject to chapter 103D.

(b) The board shall establish rules that enable nonresident retired employee-beneficiaries to obtain health benefits from a health benefits plan carrier or third party administrator licensed to provide such services within the retired employee-beneficiaries' state of residence. The election of a nonresident retired employee-beneficiary to obtain health benefits from a health benefits plan carrier or third party administrator outside of the State of Hawaii shall be at the discretion of the electing retired employee-beneficiary. The fund shall not be obligated to pay more than the amount allowed for retired employee-beneficiaries who reside in the State of Hawaii; provided that if the cost of a health benefits plan subscribed to by a nonresident retired employee-beneficiary exceeds the amount the fund is obligated to pay, the retired employee-beneficiary shall be responsible for the difference."

SECTION 6. Section 87A-21, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The board shall establish eligibility criteria to determine who can qualify as an employee-beneficiary, dependent-beneficiary, or qualified-beneficiary, consistent with [the provisions of] this chapter[.]; provided that the board shall allow an employee-beneficiary, whose spouse is not a public employee or retired employee-beneficiary, the option to:

(1) Enroll the spouse in an individual health plan if the employee-beneficiary has no unmarried, dependent children on the employee-beneficiary's health benefits plan; or

(2) Enroll in a family health plan if the employee-beneficiary has at least one dependent, unmarried child that is to be covered under the employee-beneficiary's health benefits plan."

SECTION 7. Section 87A-26, Hawaii Revised Statutes, is amended to read as follows:

"[[]§87A-26[]] Rules; policies, standards, and procedures. (a) The board [may] shall adopt rules for the purposes of this chapter. Rules shall be adopted [without regard to] in accordance with chapter 91. [Rulemaking procedures shall be adopted by the board and shall minimally provide for:

(1) Consultation with employers and affected employee organizations with regard to proposed rules;

(2) Adoption of rules at open meetings that permit the attendance of any interested persons;

(3) Approval of rules by the governor; and

(4) Filing of rules with the lieutenant governor.]

(b) The board may also issue policies, standards, and procedures consistent with its rules.

(c) The board [may] shall adopt rules, [without regard to] in accordance with chapter 91, governing dispute resolution procedures in the event of impasse in decision-making[; provided that the rules shall be adopted with the concurrence of six trustees.]."

SECTION 8. Section 87A-33, Hawaii Revised Statutes, is amended by amending subsections (b) and (c) to read as follows:

"(b) Effective July 1, 2003, there is established a base monthly contribution for health benefit plans that the State, through the department of budget and finance, and the counties, through their respective departments of finance, shall pay to the fund, up to [the following]:

(1) $218 for each employee-beneficiary enrolled in supplemental medicare self plans;

(2) $671 for each employee-beneficiary enrolled in supplemental medicare family plans;

(3) $342 for each employee-beneficiary enrolled in non-medicare self plans; and

(4) $928 for each employee-beneficiary enrolled in non-medicare family plans.

The monthly contribution by the State or county shall not exceed the actual cost of the health benefits plan or plans. If both husband and wife are employee-beneficiaries, the total contribution by the State or county shall not exceed the monthly contribution for a supplemental medicare family or non-medicare family plan, as appropriate.

(c) The base composite monthly contribution shall be adjusted annually, beginning July 1, 2004. The adjusted base composite monthly contribution for each new plan year (July 1 until June 30) shall be calculated by increasing or decreasing the base composite monthly contribution in effect through the end of the previous plan year by the percentage increase or decrease in the medicare part B premium rate for those years, [which percentage shall be calculated by dividing the medicare part B premium rate in effect at the beginning of the new plan year by the rate in effect through the end of the previous plan year.] or the percentage increase or decrease of the medical component of the consumer price index as calculated for the State by the federal government, whichever is greater."

As used in this subsection, "medicare part B premium rate" means the rate published in the Federal Register each year on November 1 or on the business day closest to November 1 of each year after the medicare part B premium rate has been established by the Secretary of Health and Human Services and approved by the United States Congress."

SECTION 9. The advice and consent and representation requirements established pursuant to section 3 of this Act shall not apply to the initial terms of the employer-union health benefits trust fund's board of trustees who were appointed prior to the effective date of this Act.

SECTION 10. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 11. This Act shall take effect upon its approval.

INTRODUCED BY:

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