Report Title:

Health Fund; Rate Credits; Benefits Study

 

Description:

Allows rate credit to be used to fund a study of benefit levels and costs. (HD1)

 

HOUSE OF REPRESENTATIVES

H.B. NO.

572

TWENTY-FIRST LEGISLATURE, 2001

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO THE PUBLIC EMPLOYEES HEALTH FUND.

 

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

SECTION 1. Section 87-3, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) The fund shall be used for the purpose of providing employee-beneficiaries and dependent-beneficiaries with a health benefits plan and a long-term care benefits plan; provided that the fund, including rate credits or reimbursements from any carrier or self-insured plan or any earning or interest derived therefrom, may be used to stabilize health benefits plan or long-term care benefits plan rates, and with approval of the legislature through appropriation of funds for other expenses necessary to effectuate these purposes. Notwithstanding any law to the contrary, any rate credit or reimbursement from any carrier or self-insured plan in excess of funds used to stabilize health benefits plan or long-term care benefits plan costs, and for other expenses authorized by the legislature or any earning or interest derived therefrom [shall] may be returned to the State or the county for deposit into the appropriate general fund if the moneys are returned from:

(1) A plan that provides health benefits to retirees or the surviving spouses of deceased retirees or employees killed in the performance of their duty whose coverage is financed in whole or in part by the State or by the county; or

(2) A plan that provides health benefits to employees; provided that the amount returned to the general fund shall be only that portion financed by the State or by the county on behalf of the employee.] used to fund a comprehensive study and review of benefits design and analysis of all health benefit plans under this chapter including health benefit plans of employee organizations, using industry norms and practices to determine whether benefit levels are appropriate and whether the cost of benefits are reasonable and to ensure that there is a rational relationship between benefit levels and costs. The study shall contain recommendations to the board of trustees as to the most cost effective health benefit plan or model."

SECTION 2. Section 87-22.3, Hawaii Revised Statutes, is amended to read as follows:

"§87-22.3 Determination of health benefits plans. Pursuant to section 87-4, the board of trustees shall provide health benefits to employee-beneficiaries in the following manner:

(1) For those employee-beneficiaries who are not participating in a health benefits plan of an emp1oyee organization (hereafter "nonparticipating emp1oyee-beneficiaries"), the board of trustees shall establish health benefits plans and the requirements for eligibi1ity under the health benefits p1ans. Any rate credit or reimbursement from any carrier derived from employee-beneficiary rate contributions to health benefits plans of nonparticipating employee-beneficiaries or interest derived therefrom may be used to improve the respective hea1th benefits plans of nonparticipating employee-beneficiaries or to reduce the emp1oyee-beneficiary's respective share of monthly contributions to a health plan[; or]. Improving the respective health benefits plans includes funding a comprehensive study and review of benefits design and analysis of all health benefit plans under this chapter including health benefit plans of employee organizations, using industry norms and practices to determine whether benefit levels are appropriate and whether the cost of benefits are reasonable and to ensure that there is a rational relationship between benefit levels and costs. The study shall contain recommendations to the board of trustees as to the most cost effective health benefit plan or model; or

(2) For employee-beneficiaries who participate in the health benefits plan of an employee organization, the board of trustees shal1 pay a monthly contribution for each employee-beneficiary, in the amount provided in section 87-4(a), or the actual month1y cost of the coverage, whichever is less, towards the purchase of health benefits under the health benefits plan of an employee organization."

SECTION 3. Statutory material to be repealed is bracketed. New statutory material is underscored.

SECTION 4. This Act shall take effect upon approval.