REPORT TITLE:
Public Employees Health Fund


DESCRIPTION:
Authorizes the board of trustees of the Public Employees Health
Fund to use reimbursements and rate credits to benefit
identifiable employee-beneficiaries.  (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1041
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 1999                                S.D. 1
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO THE PUBLIC EMPLOYEES HEALTH FUND.



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

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

 
Page 2                                                     1041
                                     H.B. NO.           H.D. 2
                                                        S.D. 1
                                                        

 
 1           the county for deposit into the appropriate general
 
 2           fund [if the moneys are returned from:].  The returned
 
 3           portion shall consist of:
 
 4     [(1)  A] (A)  All moneys returned from a plan that provides
 
 5           health benefits to retirees, or the surviving spouses
 
 6           of deceased retirees, or employees killed in the
 
 7           performance of their duty whose coverage is financed in
 
 8           whole or in part by the State or by the county; [or]
 
 9           and
 
10     [(2)  A] (B)  The portion of the moneys returned from a plan
 
11           that provides health benefits to employees[; provided
 
12           that the amount returned to the general fund shall be
 
13           only that portion financed by the State or by the
 
14           county on behalf of the employee.] that is financed by
 
15           the State or by a county on behalf of the employee;
 
16           provided that this portion shall not include a pro rata
 
17           share of the amounts contributed for employees in lieu
 
18           of a wage increase pursuant to a collective bargaining
 
19           agreement;
 
20      (2)  The portion of returned funds that were financed by
 
21           employee-beneficiary rate contributions (including a
 
22           pro rata share of amounts contributed by employers for
 
23           an employee-beneficiary in lieu of a wage increase
 

 
Page 3                                                     1041
                                     H.B. NO.           H.D. 2
                                                        S.D. 1
                                                        

 
 1           pursuant to a collective bargaining agreement) shall be
 
 2           used by the board in a manner that the board deems
 
 3           appropriate, which may include:
 
 4           (A)  The improvement of health benefits plans described
 
 5                in section 87-22.3(1);
 
 6           (B)  Return to identifiable employee-beneficiaries who
 
 7                participated in ascertainable years to create the
 
 8                rate credit or reimbursement or to any other
 
 9                employee-beneficiaries; or
 
10           (C)  Reduction of an employee-beneficiary's respective
 
11                share of monthly contributions to a health
 
12                benefits plan."
 
13      SECTION 2.  Section 87-22.3, Hawaii Revised Statutes, is
 
14 amended to read as follows:
 
15      "§87-22.3  Determination of health benefits plans.  Pursuant
 
16 to section 87-4, the board of trustees shall provide health
 
17 benefits to employee-beneficiaries in the following manner:
 
18      (1)  For those employee-beneficiaries who are not
 
19           participating in a health benefits plan of an employee
 
20           organization (hereafter "nonparticipating employee-
 
21           beneficiaries"), the board of trustees shall establish
 
22           health benefits plans and the requirements for
 
23           eligibility under the health benefits plans[.  Any rate
 

 
Page 4                                                     1041
                                     H.B. NO.           H.D. 2
                                                        S.D. 1
                                                        

 
 1           credit or reimbursement from any carrier derived from
 
 2           employee-beneficiary rate contributions to health
 
 3           benefits plans of nonparticipating employee-
 
 4           beneficiaries or interest derived therefrom may be used
 
 5           to improve the respective health benefits plans of
 
 6           nonparticipating employee-beneficiaries or to reduce
 
 7           the employee-beneficiary's respective share of monthly
 
 8           contributions to a health plan]; or
 
 9      (2)  For employee-beneficiaries who participate in the
 
10           health benefits plan of an employee organization, the
 
11           board of trustees shall pay a monthly contribution for
 
12           each employee-beneficiary, in the amount provided in
 
13           section 87-4(a), or the actual monthly cost of the
 
14           coverage, whichever is less, towards the purchase of
 
15           health benefits under the health benefits plan of an
 
16           employee organization."
 
17      SECTION 3.  Section 87-28, Hawaii Revised Statutes, is
 
18 amended to read as follows:
 
19      "§87-28  Other powers.  In addition to the power to
 
20 administer the fund, the board of trustees may:
 
21      (1)  Collect, receive, deposit, withdraw, and invest money
 
22           in behalf of the fund;
 
23      (2)  Appoint an administrator and staff necessary to carry
 
24           out this chapter, subject to the limitations of
 

 
Page 5                                                     1041
                                     H.B. NO.           H.D. 2
                                                        S.D. 1
                                                        

 
 1           available appropriations and chapters 76 and 77 and
 
 2           section 78-1;
 
 3      (3)  Make payments of periodic charges and pay for
 
 4           reasonable expenses incurred to carry out the purposes
 
 5           of the fund[;], including reimbursements to
 
 6           employee-beneficiaries; or
 
 7      (4)  Require any department, agency, or employee of the
 
 8           State and county to furnish information to the board to
 
 9           carry out the purposes of this chapter." 
 
10      SECTION 4.  Statutory material to be repealed is bracketed.
 
11 New statutory material is underscored.
 
12      SECTION 5.  This Act shall take effect upon its approval.