Report Title:

Hawaii Employer-Union Trust Fund; No Self-Insurance

 

Description:

Requires the Hawaii employer-union trust fund to contract with a carrier to provide health benefit plans to members and dependents.  Deletes authority of the board of trustees to provide health benefits through self insurance.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1717

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND.

 

 

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

 


     SECTION 1.  The purpose of this Act is to address the Hawaii employer-union trust fund.  More specifically, this Act requires the board of trustees to contract with a carrier to provide health benefits plans to members.  This Act also repeals the authority of the board of trustees to provide health benefits through self-insurance.

     SECTION 2.  Section 87A-1, Hawaii Revised Statutes, is amended by amending the definitions of "health benefits plan" and "long-term care benefits plan" to read as follows:

     ""Health benefits plan" means[:

     (1)  A] a group insurance contract or service agreement that may include medical, hospital, surgical, prescribed drugs, vision, and dental services, in which a carrier agrees to provide, pay for, arrange for, or reimburse the cost of the services as determined by the board[; or

     (2)  A similar schedule of benefits established by the board and provided through the fund on a self-insured basis].

     "Long-term care benefits plan" means[:

     (1)  A] a group insurance contract or service agreement in which a carrier agrees to provide, pay for, arrange for, or reimburse the cost of long-term care benefits as determined by the board[; or

     (2)  A similar schedule of benefits established by the board and provided through the fund on a self-insured basis]."

     SECTION 3.  Section 87A-16, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The board [may] shall contract [for] with a carrier to provide health benefits plans [or provide health benefits through a noninsured schedule of benefits]."

     SECTION 4.  Section 87A-18, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  The board may contract with a carrier to provide fully insured benefits [or with a third-party administrator to administer self-insured benefits]."

     SECTION 5.  Section 87-31, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows

     "(b)  The fund, including any earnings on investments, and rate credits or reimbursements from any carrier [or self-insured plan and any earning or interest derived therefrom], may be used to stabilize health and other benefit plan rates; provided that the approval of the governor and the legislature shall be necessary to fund administrative and other expenses necessary to effectuate these purposes."

     SECTION 6.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 7.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 8.  This Act shall take effect on July 1, 2009, and shall be repealed on June 30, 2015; provided that sections 87A‑1, 87A‑16, 87A‑18, and 87A‑31, Hawaii Revised Statutes, shall be reenacted in the form in which they read on June 30, 2009.

 

INTRODUCED BY:

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