STAND. COM. REP. NO. 458

Honolulu, Hawaii

, 2005

RE: H.B. No. 40

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Labor & Public Employment, to which was referred H.B. No. 40 entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC EMPLOYEE HEALTH BENEFITS,"

begs leave to report as follows:

The purpose of this bill is to assist retirees by:

(1) Requiring the Employer-Union Health Benefits Trust Fund (EUTF) to establish a flexible health benefit option plan for retirees to select benefits coverage under separate option categories;

(2) Defining a flexible health benefit option plan; and

(3) Allowing employee-beneficiaries whose spouses are not public employees or retired public employees to enroll in various plans of the EUTF.

The Hawaii State Teachers Association testified in support of this measure. The Attorney General and Department of Budget and Finance did not support this measure. The Hawaii Employer-Union Health Benefits Trust Fund Board of Trustees (Board) commented on this bill.

Your Committee finds that retirees often require varying forms of medical treatment and other healthcare services and that they should be allowed to choose the benefits they need from an optional plan. However, your Committee recognizes the concerns raised by the Department of Budget and Finance regarding the fiscal implications of allowing nonpublic employee spouses to enroll separately into the EUTF. Your Committee also recognizes the Attorney General's concern that this measure requires the Board to adopt rules in accordance with chapter 91, Hawaii Revised Statutes (HRS), when the Board already has the statutory authority to adopt rules without regard to chapter 91, HRS.

Accordingly, your Committee has amended this measure by deleting:

(1) The requirement for the Board to adopt rules pursuant to Chapter 91, HRS, regarding open enrollment periods and the new flexible health benefit option plan; and

(2) The provision that allows employee-beneficiaries whose spouses are not public employees or retired public employees to enroll in EUTF plans.

Technical, nonsubstantive amendments were also made for clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Labor & Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 40, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 40, H.D. 1, and be referred to the Committee on Finance.

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

 

____________________________

KIRK CALDWELL, Chair