REPORT TITLE:
Public Employees Health Fund


DESCRIPTION:
Specifies that the State and counties will pay into the Public
Employees Health Fund (Health Fund) a monthly contribution of
$43.80.  Requires state and county retired employees and their
spouses to enroll in the federal Medicare Part B insurance
program.  (SB1292 HD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1294
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                H.D. 2
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 87-27, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§87-27  Supplemental plan to federal Medicare.  Any other
 
 4 provision of this chapter notwithstanding, the board of trustees
 
 5 shall establish, effective July 1, 1966, a health benefit plan
 
 6 which takes into account benefits available to an employee-
 
 7 beneficiary and spouse under the federal Medicare plan, subject
 
 8 to the following conditions:
 
 9      (1)  There shall be no duplication of benefits payable under
 
10           federal Medicare but the plan so established by the
 
11           board shall be supplemental to the federal Medicare
 
12           plan[.];
 
13      (2)  The State through the department of budget and finance
 
14           and the several counties through their respective
 
15           departments of finance shall pay to the fund a monthly
 
16           contribution of $43.80 for voluntary medical insurance
 
17           coverage under federal Medicare [may be paid by the
 
18           fund, in such manner as the board shall specify, in the
 
19           case of an] for each employee-beneficiary who is a
 
20           retired employee, and spouse while the employee-
 

 
Page 2                                                     1294
                                     S.B. NO.           S.D. 1
                                                        H.D. 2
                                                        

 
 1           beneficiary is living, including members of the old
 
 2           pension system and, after death, the employee-
 
 3           beneficiary's spouse; provided the spouse qualifies as
 
 4           an employee-beneficiary; [provided that the counties,
 
 5           through their respective departments of finance, shall
 
 6           reimburse the fund for any contributions made for
 
 7           county employee-beneficiaries under this paragraph.]
 
 8      (3)  The benefits available under the plan, when taken
 
 9           together with the benefits available under the federal
 
10           Medicare plan shall, as nearly as is possible,
 
11           approximate the benefits available under the plans set
 
12           forth in section 87-22.  If, for any reason, a
 
13           situation develops where the benefits available under
 
14           the supplemental plan and the federal Medicare plan
 
15           substantially differ from those that would otherwise be
 
16           available, the board is authorized to correct this
 
17           inequity to assure substantial equality of benefits[.];
 
18      (4)  [Any employee-beneficiary or dependent-beneficiary who
 
19           is enrolled in the federal Medicare plan shall
 
20           participate in the supplemental plan to be set up
 
21           hereunder, and any employee-beneficiary or dependent-
 
22           beneficiary eligible for, but not enrolled in the
 
23           federal Medicare plan, may participate in such other
 
24           plans as are set forth in section 87-22.]
 

 
Page 3                                                     1294
                                     S.B. NO.           S.D. 1
                                                        H.D. 2
                                                        

 
 1           Notwithstanding any other law to the contrary, all
 
 2           employee-beneficiaries or dependent-beneficiaries who
 
 3           are eligible to enroll in the federal Medicare Part B
 
 4           medical insurance plan shall enroll in that federal
 
 5           plan as a requirement to receive the contributions and
 
 6           to participate in the employee benefit plans described
 
 7           in this chapter.  This paragraph shall pertain to
 
 8           retired employees and their spouses, and the surviving
 
 9           spouses of deceased retirees and employees killed in
 
10           the performance of their duty; and
 
11      (5)  The board of trustees shall determine which employee-
 
12           beneficiaries and dependent-beneficiaries, who are not
 
13           enrolled in the federal Medicare Part B medical
 
14           insurance plan, may participate in such other plans as
 
15           are set forth in section 87-22."
 
16      SECTION 2.  Statutory material to be repealed is bracketed.
 
17 New statutory material is underscored.
 
18      SECTION 3.  This Act shall take effect on July 1, 1999.