STAND. COM. REP. NO. 1722

                                 Honolulu, Hawaii
                                                   , 1999

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




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

Sir:

     Your Committee on Finance, to which was referred S.B. No.
1294, S.D. 1, H.D. 1, entitled: 

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

begs leave to report as follows:

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

     The Health Fund Board of Trustees testified in support of
the intent of this bill.  The Retirees Unit of the Hawaii
Government Employees Association and the Department of Labor and
Industrial Relations (DLIR) commented on this bill.


 
 
 
 
                                 STAND. COM. REP. NO. 1722
                                 Page 2

 
     Your Committee has amended this bill by:

     (1)  Deleting the requirement for DLIR to study the Health
          Fund and draft proposed legislation; and

     (2)  Making technical, nonsubstantive changes for style and
          clarity.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
1294, S.D. 1, H.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as S.B. No. 1294,
S.D. 1, H.D. 2.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair