STAND. COM. REP. NO.265

Honolulu, Hawaii

, 2003

RE: S.B. No. 763

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Labor, to which was referred S.B. No. 763 entitled:

"A BILL FOR AN ACT RELATING TO THE EMPLOYER-UNION HEALTH BENEFITS TRUST FUND,"

begs leave to report as follows:

The purpose of this measure is to require the State to pay to the Employer-Union Health Benefits Trust Fund a contribution equal to an amount of not less than the medical part B premium for voluntary medical insurance under Medicare for retirees.

Testimony in support of this measure was submitted by the Hawaii Government Employees Association, the Retirees Unit of the Hawaii Government Employees Association, the United Public Workers, the Hawaii State Teachers Association, the Hawaii State Retired Teachers Association, the Oahu Retired Teachers Association, and a private citizen.

Your Committee finds that once public employees reach the age of sixty-five, they are required to enroll in the Medicare Part B medical insurance plan in order to maintain insurance coverage with the State providing supplemental coverage only. Your Committee also finds that, under the existing law, the State is required to pay to the Employer-Union Health Benefits Trust Fund (EUTF) a contribution in the amount of $50 per month, or an amount otherwise determined by the EUTF board, for voluntary medical insurance coverage under Medicare for retirees.

However, your Committee finds that the cost of the Medicare Part B medical insurance plan has continually increased and has already exceeded this $50 amount. Additionally, your Committee finds that a six-month lag exists in the reimbursement of retirees for any cost differential resulting from an increase in the Medicare Part B medical insurance plan premium. Therefore, in order to adequately compensate retirees, your Committee believes that the EUTF should reimburse retirees for at least the full amount of the Medicare Part B premium and ensure that any differential due to a rate increase is also reimbursed in a timely manner.

Accordingly, your Committee has amended the measure to require the EUTF to reimburse the retiree for any cost differential due to a rate increase in the Medicare Part B medical insurance plan within thirty days of the rate change.

As affirmed by the record of votes of the members of your Committee on Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 763, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 763, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Labor,

____________________________

BRIAN KANNO, Chair