THE SENATE

S.C.R. NO.

62

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 
   


SENATE CONCURRENT

RESOLUTION

 

REQUESTING THE HAWAII UNINSURED PROJECT TO CONVENE A TASK FORCE ON THE PREPAID HEALTH CARE ACT OF 1974.

 

WHEREAS, the Hawaii State Legislature enacted the Prepaid Health Care Act in 1974 to provide for employer-based health insurance coverage for Hawaii employees; and

WHEREAS, the Prepaid Health Care Act is the cornerstone of health care access in Hawaii, providing the vast majority of Hawaii employees with health insurance; and

WHEREAS, the Prepaid Health Care Act is unique in the United States and has been instrumental in making Hawaii one of the more successful states in ensuring that people have health insurance; and

WHEREAS, Hawaii ranks first by far in the United States, with ninety-one per cent of private-sector employers offering health insurance to its employees; and

WHEREAS, a one-of-a-kind Employee Retirement Income Security Act of 1974 exemption essentially froze the Prepaid Health Care Act in the form in which it read when enacted in 1974; and

WHEREAS, Hawaii’s economy and wages as well as the cost of health care have dramatically changed since 1974. For example, the minimum wage in 1974 was $2.00 per hour, compared to $5.75 in 2002; and the average employer’s minimum monthly share of an employee’s health premium was $11.16 in 1974, compared to $169.08 in 2002; and

WHEREAS, because the formula for calculating an employer’s contribution for health premiums is fixed in the 1974 language of the Prepaid Health Care Act, an employer’s contribution can place a strain on the cost of doing business in Hawaii; and

WHEREAS, the Prepaid Health Care Act, if amended, could possibly expand health care coverage for Hawaii’s residents; and

WHEREAS, over the past two years, the Hawaii Uninsured Project has initiated research, policy analysis, community forums, stakeholder gatherings, and public education activities to reduce the number of uninsured in Hawaii and increase access to health care; and

WHEREAS, the Hawaii Uninsured Project is a community-led and community-based effort that has over one hundred partner organizations from the public and private sectors, all of which share the goal of expanding health coverage; and

WHEREAS, the Hawaii Uninsured Project developed a successful community-based, facilitated process in addressing health insurance coverage issues, and is an ideal entity to do further research and to convene Hawaii’s leaders to review the Prepaid Health Care Act; and

WHEREAS, over one hundred sixty participants representing numerous public and private stakeholders at the Hawaii Uninsured Project Policy Summit on November 29, 2001, broadly recommended that there be research and dialogue on the Prepaid Health Care Act; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-first Legislature of the State of Hawaii, Regular Session of 2002, the House of Representatives concurring, that the Hawaii Uninsured Project is requested to convene a Prepaid Health Care Act Task Force to review and examine the effectiveness of the Prepaid Health Care Act; and

BE IT FURTHER RESOLVED that the Hawaii Uninsured Project is requested to work collaboratively with and include as part of the Prepaid Health Care Act Task Force representatives of:

(1) The Department of Labor and Industrial Relations;

(2) The Department of Health;

(3) The Insurance Commissioner;

(4) Hawaii’s congressional delegation;

(5) Labor organizations;

(6) Health insurers;

(7) Mutual benefit societies;

(8) Health maintenance organizations;

(9) Health care providers;

(10) Acute care facilities;

(11) Small and large business organizations;

(12) Consumer health organizations;

(13) Community health clinics; and

(14) Any other entities affected by the Prepaid Health Care Act;

and

BE IT FURTHER RESOLVED that the Prepaid Health Care Act Task Force is further requested to examine the feasibility of:

(1) Amending the Prepaid Health Care Act, and examining the possible effects the amendments could have on Hawaii’s exemption from the Employee Retirement Income Security Act of 1974; and

(2) Identifying or developing a process to ensure that any amendment to the Prepaid Health Care Act does not jeopardize Hawaii’s exemption;

and

BE IT FURTHER RESOLVED that the Prepaid Health Care Act Task Force is requested to conduct a comprehensive study on:

(1) The cost and impact of various scenarios and amendments to the Prepaid Health Care Act; and

(2) Historical and trend analysis of insurance coverage, wages, employer/employee contributions, cost of health insurance, cost of health care and other local and national factors related to the efficacy and impact of the Prepaid Health Care Act;

and

BE IT FURTHER RESOLVED that the Hawaii Uninsured Project is requested to convene a community-based and statewide Prepaid Health Care Act Policy Summit consisting of a broad cross-section of business, labor, government, health organizations, community organizations, and health care consumers to solicit feedback and recommendations from those who are directly impacted by the Prepaid Health Care Act; and

BE IT FURTHER RESOLVED that the Prepaid Health Care Act Task Force is requested to submit a report of its findings and recommendations to the Legislature and the Governor no later than twenty days prior to the convening of the Regular Session of 2003; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Director of Health who, in turn, is requested to distribute copies to health care providers, acute care facilities, and community health clinics; the Insurance Commissioner who, in turn, is requested to distribute copies to health insurers, mutual benefit societies, health maintenance organizations, and consumer health organizations; the Director of Labor and Industrial Relations who, in turn, is requested to distribute copies to labor organizations, and small and large business organizations; and Hawaii's congressional delegation.

 

 

 

OFFERED BY:

_____________________________

Report Title:

Prepaid Health Care Act Task Force