Public Employees Health Fund

Requires State and county retired employees and their spouses to
enroll in the federal Medicare Part B insurance program.  (HB1048

HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            

                   A  BILL  FOR  AN  ACT



 1      SECTION 1.  Section 87-27, Hawaii Revised Statutes, is
 2 amended to read as follows:
 3      "87-27  Supplemental plan to federal Medicare.  Any other
 4 provision of this chapter notwithstanding, the board of trustees
 5 shall establish, effective July 1, 1996, a health benefit plan
 6 which takes into account benefits available to an employee-
 7 beneficiary and spouse under the federal Medicare plan, subject
 8 to the following conditions:
 9      (1)  There shall be no duplication of benefits payable under
10           federal Medicare but the plan so established by the
11           board shall be supplemental to the federal Medicare
12           plan[.];
13      (2)  The contribution for voluntary medical insurance
14           coverage under federal Medicare may be paid by the
15           fund, in such manner as the board shall specify, in the
16           case of an employee-beneficiary who is a retired
17           employee, and spouse while the employee-beneficiary is
18           living, including members of the old pension system and
19           after death the employee-beneficiary's spouse provided
20           the spouse qualifies as an employee-beneficiary;

Page 2                                                     1048
                                     H.B. NO.           H.D. 1

 1           provided that the counties, through their respective
 2           departments of finance, shall reimburse the fund for
 3           any contributions made for county employee-
 4           beneficiaries under this paragraph[.];
 5      (3)  The benefits available under the plan, when taken
 6           together with the benefits available under the federal
 7           Medicare plan shall, as nearly as is possible,
 8           approximate the benefits available under the plans set
 9           forth in section 87-22.  If, for any reason, a
10           situation develops where the benefits available under
11           the supplemental plan and the federal Medicare plan
12           substantially differ from those that would otherwise be
13           available, the board is authorized to correct this
14           inequity to assure substantial equality of benefits[.];
15      (4)  [Any employee-beneficiary or dependent-beneficiary who
16           is enrolled in the federal Medicare plan shall
17           participate in the supplemental plan to be set up
18           hereunder, and any employee-beneficiary or dependent-
19           beneficiary eligible for, but not enrolled in the
20           federal Medicare plan, may participate in such other
21           plans as are set forth in section 87-22.]
22           Notwithstanding any other law to the contrary, all
23           employee-beneficiaries or dependent-beneficiaries who

Page 3                                                     1048
                                     H.B. NO.           H.D. 1

 1           are eligible to enroll in the federal Medicare Part B
 2           medical insurance plan shall enroll in that federal
 3           plan as a requirement to receive the contributions and
 4           to participate in the employee benefit plans described
 5           in this chapter.  This paragraph shall pertain to
 6           retired employees and their spouses, the surviving
 7           spouses of deceased retirees, and employees killed in
 8           the performance of their duty; and
 9      (5)  The board of trustees shall determine which employee-
10           beneficiaries and dependent-beneficiaries, who are not
11           enrolled in the federal Medicare Part B medical
12           insurance plan, may participate in such other plans as
13           are set forth in section 87-22."
14      SECTION 2.  Statutory material to be repealed is bracketed.
15 New statutory material is underscored.
16      SECTION 3.  This Act shall take effect upon its approval.