THE SENATE                           S.C.R. NO.            195
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                    SENATE  CONCURRENT
                        RESOLUTION
  URGING THE UNITED STATES CONGRESS TO ENACT LEGISLATION TO AMEND
    THE FEDERAL EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
    1974, AS AMENDED, TO ALLOW AN AMENDMENT TO THE HAWAII
    PREPAID HEALTH CARE ACT TO REMOVE THE 1.5 PER CENT LIMIT
    OF EMPLOYEES WAGES THAT EMPLOYEES ARE REQUIRED TO PAY FOR
    HEALTH CARE PREMIUMS IN ORDER TO ACHIEVE EQUITY AND AFFORD
    HAWAII'S EMPLOYERS RELIEF FROM INCREASING HEALTH CARE
    COVERAGE COSTS.



 1        WHEREAS, in 1974, Hawaii enacted the Hawaii Prepaid Health
 2   Care Act, which was codified in chapter 393, Hawaii Revised
 3   Statutes, and which requires employers to provide prepaid
 4   health coverage for employees; and
 5   
 6        WHEREAS, the federal Employee Retirement Income Security
 7   Act of 1974 preempts the Hawaii Prepaid Health Care Act but the
 8   State obtained a congressional exemption from this preemption
 9   via P.L. No. 97-473, §301 (29 U.S.C. §1144(b)(5)); and
10   
11        WHEREAS, section 393-13, Hawaii Revised Statutes, requires
12   the employer to contribute at least one-half of the health care
13   coverage premium for an employee, and requires the employee to
14   contribute the balance but "provided that in no case shall the
15   employee contribute more than 1.5 per cent of the employee's
16   wages; and provided that if the amount of the employee's
17   contribution is less than one-half of the premium, the employer
18   shall be liable for the whole remaining portion of the
19   premium"; and
20   
21        WHEREAS, Hawaii's employers have shouldered the heavy
22   burden of partially employer-subsidized health care insurance
23   coverage for their employees since 1974; and
24   
25        WHEREAS, employers in the State, especially small business
26   owners who employ a relatively small number of workers, are
27   saddled with a particularly heavy load because of the very low
28   limit of 1.5 per cent of wages placed on the employee's share
29   of premium costs, resulting in the employer being required to
30   pay the difference, in addition to the original one-half of
31   premium costs; and
32   

 
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                                     S.C.R. NO.         195
                                                        
                                                        

 
 1        WHEREAS, while this 1.5 per cent limit may have been
 2   considered reasonable twenty-six years ago when health care
 3   costs were comparatively low, this is no longer the case and
 4   the limit of 1.5 per cent of an employee's wages is
 5   unrealistically low and should be increased to allow for
 6   greater equity for employers who currently almost invariably
 7   pay much more than one-half of health care premiums; and
 8   
 9        WHEREAS, in order to achieve this equity, employees should
10   be called upon to shoulder a greater part of their own health
11   care costs by removing 1.5 per cent limit; and
12   
13        WHEREAS, however, this can only be accomplished if an
14   amendment is made to the federal Employee Retirement Income
15   Security Act of 1974, as amended, to allow section 393-13 in
16   the Hawaii Prepaid Health Care Act to be amended; now,
17   therefore,
18   
19        BE IT RESOLVED by the Senate of the Twentieth Legislature
20   of the State of Hawaii, Regular Session of 2000, the House of
21   Representatives concurring, that the United States Congress is
22   urged to enact legislation to amend the federal Employee
23   Retirement Income Security Act of 1974, as amended, to allow an
24   amendment to the Hawaii Prepaid Health Care Act to remove the
25   1.5 per cent limit of employees wages that employees are
26   required to pay for health care premiums in order to achieve
27   equity and afford Hawaii's employers relief from increasing
28   health care coverage costs; and
29   
30        BE IT FURTHER RESOLVED that Hawaii's congressional
31   delegation is requested to introduce the aforesaid legislation
32   for consideration by the Congress; and
33   
34        BE IT FURTHER RESOLVED that certified copies of this
35   Concurrent Resolution be transmitted to the President of the
36   United States Senate, the Speaker of the United States House of
37   Representatives, the members of Hawaii's congressional
38   delegation, and the Directors of Health and Labor and
39   Industrial Relations.
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43                         OFFERED BY:  ____________________________