HOUSE OF REPRESENTATIVES

H.B. NO.

2361

TWENTY-EIGHTH LEGISLATURE, 2016

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

MAKING AN APPROPRIATION FOR THE PREMIUM SUPPLEMENTATION TRUST FUND.

 

 

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

 


     SECTION 1.  The legislature finds that the premium supplementation trust fund was created in 1974 to pay premium supplementations to qualified employers and to pay health care expenses to eligible employees of non-complying or insolvent employers.  The fund was established by a one-time general fund appropriation of $500,000 and remained healthy during its first thirty years of existence, but the health of the fund began to decline as more employers sought supplementation payments to help pay for their health care premiums.  The legislature further finds that between 2004 and July 2015, the fund's balance declined from $3,478,617 to $226,526.  During the fourteen-month period from June 1, 2014, to July 31, 2015, the fund paid over $555,619 in premium supplementations and, at the current payout rate, the department of labor and industrial relations predicts the fund will become insolvent in fiscal year 2016-2017.   

     The purpose of this Act is to ensure the fund remains solvent to carry out the purposes of the Prepaid Health Care Act.

     SECTION 2.  There is appropriated out of the general revenues of the State of Hawaii the sum of $500,000 or so much thereof as may be necessary for fiscal year 2016-2017 to be deposited into the premium supplementation trust fund.

     SECTION 3.  This Act, upon its approval, shall take effect on July 1, 2016.

 

INTRODUCED BY:

_____________________________

 

BY REQUEST


 


 

Report Title:

Appropriation; Premium Supplementation Trust Fund

 

Description:

Makes an appropriation to replenish funds in the Premium Supplementation Trust Fund to cover the costs of health care expenses for eligible employees and for premium supplementation for employers that are entitled to premium supplementation under the Prepaid Health Care Law.

 

 

 

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