STAND. COM. REP. NO. 2952

Honolulu, Hawaii

RE: S.B. No. 3217

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3217 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND,"

begs leave to report as follows:

The purpose and intent of this measure is to require the Hawaii Employer-Union Health Benefits Trust Fund to increase employer contribution amounts based on changes to the Medicare Part B premiums between the two previous years, instead of changes between the previous and current years.

Your Committee received written comments in support of this measure from the Hawaii Employer-Union Health Benefits Trust Fund.

Your Committee finds that due to unfortunate timing, the health coverage open enrollment period for the Hawaii Employer-Union Health Benefits Trust Fund retirees can occur before the publication of the applicable Medicare Part B premium amount, which results in retirees not knowing the employers' contribution amount during open enrollment. Your Committee further finds that this measure will help to correct the timing issue by calculating employer contribution amounts based on the Medicare Part B premium publications from the previous two years, which are published well before the open enrollment period. Your Committee finds that this change will help to accurately inform retirees of their potential health coverage costs during the open enrollment period.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3217 and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair