STAND. COM. REP. NO. 338

Honolulu, Hawaii

RE: S.B. No. 1315

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Labor and Technology, to which was referred S.B. No. 1315 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND MEDICARE PART B PREMIUM REIMBURSEMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to exclude state and county retired employees hired after June 30, 2023, and their spouses from receiving Medicare income related monthly adjustment amounts as part of their Medicare Part B reimbursement payments.

Your Committee received testimony in support of this measure from the Hawaii Employer-Union Health Benefits Trust Fund and Department of Budget and Finance. Your Committee received testimony in opposition to this measure from the State of Hawaii Organization of Police Officers. Your Committee received comments on this measure from the Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO.

Your Committee finds that many retired state employees contributed decades of years of service to the State in various roles. Presently, the State requires retirees and their dependents to enroll in Medicare Part B, if eligible; enroll in EUTF retiree medical or prescription drug plans; or both. To reduce significant costs to the State, this measure eliminates reimbursements of the Medicare Part B income related monthly adjustment amounts.

Your Committee has amended this measure by:

(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Labor and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1315, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1315, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________

SHARON MORIWAKI, Chair