REPORT TITLE:
Public Employee LTC Ins


DESCRIPTION:
Makes participation in long-term care benefits plan for public
employees mandatory and funded entirely by contributions by the
Health Fund.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            1679        
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT
RELATING TO PUBLIC EMPLOYEES LONG-TERM CARE BENEFITS PLAN.



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

 1      SECTION 1.  Section 87-3, Hawaii Revised Statutes, is
 
 2 amended as follows:
 
 3      1.  By amending subsection (a) to read:
 
 4      "(a)  The fund shall be used for the purpose of providing
 
 5 employee-beneficiaries and dependent-beneficiaries with a health
 
 6 benefits plan and a long-term care benefits plan; provided that
 
 7 the long-term care benefits plan, in which participation is
 
 8 mandatory, shall be funded entirely by contributions by the fund,
 
 9 and that the fund, including rate credits or reimbursements from
 
10 any carrier or self-insured plan or any earning or interest
 
11 derived therefrom, may be used to stabilize health benefits plan
 
12 or long-term care benefits plan rates, to the extent that
 
13 contributions are received from the fund for the long-term care
 
14 benefits plan, and with approval of the legislature through
 
15 appropriation of funds for other expenses necessary to effectuate
 
16 these purposes.  Notwithstanding any law to the contrary, any
 
17 rate credit or reimbursement from any carrier or self-insured
 
18 plan in excess of funds used to stabilize health benefits plan
 
19 [or long-term care benefits plan] costs, and for other expenses
 
20 authorized by the legislature or any earning or interest derived
 

 
Page 2                                         1679        
                                     H.B. NO.           
                                                        
                                                        

 
 1 therefrom shall be returned to the State or the county for
 
 2 deposit into the appropriate general fund if the moneys are
 
 3 returned from:
 
 4      (1)  A plan that provides health benefits to retirees or the
 
 5           surviving spouses of deceased retirees or employees
 
 6           killed in the performance of their duty whose coverage
 
 7           is financed in whole or in part by the State or by the
 
 8           county; or
 
 9      (2)  A plan that provides health benefits to employees;
 
10           provided that the amount returned to the general fund
 
11           shall be only that portion financed by the State or by
 
12           the county on behalf of the employee."
 
13      2.  By amending subsection (c) to read:
 
14      "(c)  To the extent that contributions are received from
 
15 employee-beneficiaries and qualified-beneficiaries for long-term
 
16 care insurance benefits under section 87-23.6, the fund shall
 
17 also be used for the purpose of providing long-term care
 
18 insurance benefits to eligible participants[.]; provided that the
 
19 long-term care benefits plan shall be funded entirely by
 
20 contributions by the fund."
 
21      SECTION 2.  Section 87-4, Hawaii Revised Statutes, is
 
22 amended by amending subsection (a) to read as follows:
 

 
 
 
Page 3                                         1679        
                                     H.B. NO.           
                                                        
                                                        

 
 1      "(a)  The State through the department of budget and finance
 
 2 and the several counties through their respective departments of
 
 3 finance shall pay to the fund a monthly contribution equal to the
 
 4 amount established under chapter 89C or specified in the
 
 5 applicable public sector collective bargaining agreement,
 
 6 whichever is appropriate, for each of their respective employee-
 
 7 beneficiaries and employee-beneficiaries with dependent-
 
 8 beneficiaries, [which] that shall be used toward the payment of
 
 9 costs of a health benefits plan[;] and that shall be used toward
 
10 the payment of costs of a mandatory participation long-term care
 
11 benefits plan; provided that the monthly contribution shall not
 
12 exceed the actual cost of a health benefits plan.  If both
 
13 husband and wife are employee-beneficiaries, the total
 
14 contribution by the State or the appropriate county shall not
 
15 exceed the monthly contribution of a family plan for both of
 
16 them.  If, however, the State or any of the several counties
 
17 establish cafeteria plans in accordance with section 125 of the
 
18 Internal Revenue Code of 1986, as amended, and part II of chapter
 
19 78, the monthly contribution to the fund for those employee-
 
20 beneficiaries who participate in a cafeteria plan shall be made
 
21 through the cafeteria plan.  In this event, the payments made by
 
22 the State or the counties shall include the State's and the
 
23 counties' respective contributions to the fund and the employee-
 

 
Page 4                                         1679        
                                     H.B. NO.           
                                                        
                                                        

 
 1 beneficiary's share of the cost of the health benefits plan
 
 2 selected and authorized by the employee-beneficiary through the
 
 3 cafeteria plan."
 
 4      SECTION 3.  Section 87-4.5, Hawaii Revised Statutes, is
 
 5 amended by amending subsection (a) to read as follows:
 
 6      "(a)  This section shall apply to state and county
 
 7 contributions to the fund for employees specified in section
 
 8 87-1(5)(A)(v), except those hired after June 30, 1996, under
 
 9 section 87-4.6, who retire after June 30, 1984, with fewer than
 
10 ten years of credited service, excluding sick leave.  Monthly
 
11 contributions made under this section shall be used toward the
 
12 payment of costs of a mandatory participation long-term care
 
13 benefits plan, the costs of which shall be funded entirely by the
 
14 fund."
 
15      SECTION 4.  Section 87-23.5, Hawaii Revised Statutes, is
 
16 amended by amending its title and subsection (a) to read as
 
17 follows:
 
18      "87-23.5  Determination of mandatory participation long-
 
19 term care benefits plan; contract with carrier or third-party
 
20 administrator.(a)  The board of trustees shall determine the
 
21 benefits of a mandatory participation long-term care benefits
 
22 plan which shall be funded entirely by contributions by the fund,
 
23 for employee-beneficiaries, their spouses or reciprocal
 

 
Page 5                                         1679        
                                     H.B. NO.           
                                                        
                                                        

 
 1 beneficiaries, and qualified-beneficiaries.  The plan shall
 
 2 comply with [the provisions of] article 10A, part V, of chapter
 
 3 431, upon initial plan implementation only."
 
 4      SECTION 5.  Section 87-23.6, Hawaii Revised Statutes, is
 
 5 amended by amending its title and subsection (a) to read as
 
 6 follows:
 
 7      "[[]87-23.6[]]  Contributions by an employee-beneficiary or
 
 8 qualified-beneficiary for mandatory participation long-term care
 
 9 benefits plan.(a)  Participation in the long-term care benefits
 
10 plan is mandatory and shall be funded entirely by contributions
 
11 by the fund.  During the period the long-term care benefits plan
 
12 is in effect, the employee-beneficiary shall authorize, if
 
13 otherwise allowed by law, the employee-beneficiary's contribution
 
14 to be withheld and transmitted to the fund monthly by the
 
15 comptroller or finance officer who disburses the employee-
 
16 beneficiary's compensation, pension, or retirement pay.  If,
 
17 however, an employee-beneficiary's monthly contribution to the
 
18 fund is not withheld and transmitted to the fund, the employee-
 
19 beneficiary shall pay the monthly contribution directly to the
 
20 board's designated carrier or third-party administrator by the
 
21 first day of each month."
 
22      SECTION 6.  Section 87-24, Hawaii Revised Statutes, is
 
23 amended by amending its title to read as follows:
 

 
Page 6                                         1679        
                                     H.B. NO.           
                                                        
                                                        

 
 1      "87-24  Selection of a carrier or third-party administrator
 
 2 for a health benefits, group life insurance, or mandatory
 
 3 participation long-term care benefits plan."
 
 4      SECTION 7.  Statutory material to be repealed is bracketed.
 
 5 New statutory material is underscored.
 
 6      SECTION 8.  This Act shall take effect upon its approval.
 
 7 
 
 8                              INTRODUCED BY:______________________