RELATING TO THE PROCESS FOR MANAGED COMPETITION SPECIFIED IN ACT 230, SESSION LAWS OF HAWAII 1998

Establishes a process for managed competition pursuant to section 6 of Act 230, Session Laws of Hawaii 1998, to allow the State and counties to contract with private sector vendors for the provision of government services, or to allow those services to be performed in-house, as appropriate.

RELATING TO GOVERNMENT

Responds directly to the Hawii Supreme Court's decision in Konno v. County of Hawaii, 85 Haw. 61 (1997), and the fact that Act 230, Session Laws of Hawaii 1998, will sunset on June 30, 2001, without a managed competition process in place to facilitate government's effort to secure the services it needs or is required to perform more efficiently and economically.

RELATING TO PRIVATIZATION

Amends the budget law with respect to new government programs by establishing criteria for contracts entered into with private vendors to perform functions that the public sector cannot implement as cost-effectively as the private sector while meeting various objectives and standards of the state.

RELATING TO PUBLIC EMPLOYEE HEALTH BENEFITS

Creates an employer-union trust fund as a single public employees health benefit delivery system administered by a board of trustees of the Hawaii Employer-Union Health Benefit Trust authority and flexibility to carry out the purposes of the trust fund; grants certain exemptions; establishes monthly employer contributions for retirees; provides general fund appropriation; and repeals chapter 87, HRS.

RELATING TO THE PUBLIC EMPLOYEES HEALTH FUND LONG TERM CARE BENEFITS PLAN

Requires PEHF to subsidize part of premiums for long-term care benefits plan offered by the fund at $5 per month per employee-beneficiary. Conditions subsidy on insurers offering monthly payouts in $2,000 increments and making available at least 50% of payout for home- and community-based care.

RELATING TO THE PUBLIC EMPLOYEES HEALTH FUND

Deletes the requirement that financial audit costs be paid fro trust funds of the Hawaii Public Employees health Fund.

RELATING TO THE HAWAII PUBLIC EMPLOYEES HEALTH FUND

Empowers the board of the public employees health fund to annually audit health benefits plans offered by employee organizations.

RELATING TO THE PUBLIC EMPLOYEES HEALTH FUND

Establishes that the amount ported to the employee organizations for health benefit plans and group life insurance be based on a percentage of the most cost effective plan that provides the same level of benefits for participants in plans of the Public Employee Health Fund (PEHF) and employee organizations; adjust the amount ported to employee organizations; confirm the employer's authority to audit employee organization health benefits and group life insurance plans; and clarify that employee organizations that receive employer contributions are required to return the employer's share of refunds from their insurance carriers to the Health Fund.

RELATING TO THE PUBLIC EMPLOYEES' HEALTH FUND

Requires the health fund to port to the union plans an amount based on the rate for the union's least costly benefit plan rather than on the plan with the highest enrollment in the health fund.

RELATING TO THE PUBLIC EMPLOYEES' HEALTH FUND

Limits state and county contributions to public employees health fund by amount appropriated annually, or to the amount agreed to under collective bargaining, if collecive bargaining of benefits is approved in the future.

RELATING TO THE HAWAII PUBLIC EMPLOYEES HEALTH FUND

Establishes a public-private partnership that allows the Hawaii Public Empoyee's Health Fund to share in the cost of a single health benefit plan for those public employees who have dual health plan coverage with a private sector employer and a public employer.

RELATING TO THE PUBLIC EMPLOYEES HEALTH FUND

Pemits the Health fund to return the employees' share of insurance carrier refunds to beneficiaries based on their years of benefit plan participation.

RELATING TO THE PUBLIC EMPLOYEES HEALTH FUND

Discontinues health fund reimbursements for Medicare B premiums to all public employees and their spouses who retire on or after 07-01-2001.

RELATING TO THE PUBLIC EMPLOYEES HEALTH FUND

Allows the public employees health fund to enter into a cooperative purchasing agreement with the DHS Medicaid programs including QUEST, and other entities, including other similar programs of other states.

RELATING TO THE PUBLIC EMPLOYEES HEALTH FUND

Changes membership of board of trustees of PEHF to eliminate members who are clergy, teacher, and director of finance. Changes term from 4 years to at the discretion of chief executive officer of emloyer.

RELATING TO THE HAWAII PUBLIC EMPLOYEES HEALTH FUND AND THE EMPLOYEES' RETIREMENT SYSTEM OF THE STATE OF HAWAII

Transfers functions of the public employees health fund to the employees' retirement system.

RELATING TO THE PUBLIC EMPLOYEES HEALTH FUND

Allows Public Employees Health fund to offer different benefits to retirants.

RELATING TO THE PUBLIC EMPLOYEES HEALTH FUND

Clarifies that the board of trustees of the public employees health fund owes primary fiduciary duty to public employer.

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Rep. Terry Nui Yoshinaga