CONFERENCE COMMITTEE REPORT NO. 110

                            Honolulu, Hawaii
                                            , 1999

                            RE:   S.B. No. 1294
                                  S.D. 1
                                  H.D. 2
                                  C.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Conference on the disagreeing vote of the
Senate to the amendments proposed by the House of Representatives
in S.B. No. 1294, S.D. 1, H.D. 2, entitled:  

     "A BILL FOR AN ACT RELATING TO THE PUBLIC EMPLOYEES HEALTH
     FUND," 

having met, and after full and free discussion, has agreed to
recommend and does recommend to the respective Houses the final
passage of this bill in an amended form.

     The purpose of this measure is to improve the cost-
effectiveness of the Hawaii Public Employees Health Fund (Health
Fund) by:

     (1)  Requiring the State and the several counties to pay the
          Health Fund a monthly contribution of $43.80 for
          voluntary medical insurance coverage for each employee-
          beneficiary; and

     (2)  Requiring that eligible employee-beneficiaries of the
          Health Fund and their spouses enroll in the federal

 
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          Medicare Part B medical insurance plan, with exceptions
          to be determined by the Health Fund Board of Trustees.

     Upon further consideration, your Committee has amended this
bill by:

     (1)  Deleting the $43.80 cap on the Medicare Part B
          reimbursement for voluntary medical insurance coverage
          for each employee-beneficiary; and

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

     Your Committee finds that requiring eligible employee-
beneficiaries of the Public Employees' Health Fund and their
spouses to enroll in the Federal Medicare Part B insurance
program will result in reduced costs to the Health Fund as well
as to public employers.

     Your Committee on Conference is in accord with the intent
and purpose of S.B. No. 1294, S.D. 1, H.D. 2, as amended herein,
and recommends that it pass Final Reading in the form attached
hereto as S.B. No. 1294, S.D. 1, H.D. 2, C.D. 1.

                                   Respectfully submitted,

MANAGERS ON THE PART OF THE        MANAGERS ON THE PART OF THE
            HOUSE                             SENATE
                                   
                                   
                                   
______________________________     ______________________________
TERRY NUI YOSHINAGA, Co-Chair      BRIAN KANNO, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
DWIGHT Y. TAKAMINE, Co-Chair       BRIAN T. TANIGUCHI, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
KENNY GOODENOW, Member             CAROL FUKUNAGA, Co-Chair
                                   
                                   
                                   
______________________________     ______________________________
BOB NAKASONE, Member               ANDREW LEVIN, Co-Chair

 
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______________________________     ______________________________
NATHAN SUZUKI, Member              SAM SLOM, Member



______________________________
MARK MOSES, Member


 
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