2462
HOUSE OF REPRESENTATIVES                H.B. NO.           
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
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                   A  BILL  FOR  AN  ACT

RELATING TO THE PUBLIC EMPLOYEES HEALTH FUND.
 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 87, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "§87-    State and county contributions to the fund;
 
 
 6 section shall apply to state and county contributions to the fund
 
 7 for employees who were hired after June 30, 2000, and who
 
 8 retired, except that this section shall not apply if an employee
 
 9 is hired prior to July 1, 2000, and transfers employment after
 
10 June 30, 2000, nor to any employee who has at least ten years of
 
11 credited service and who has suffered a break in service.  For
 
12 the purposes of this section "transfer" means to leave state or
 
13 county employment and return to state or county employment within
 
14 ninety calendar days.
 
15      (b)  For purposes of this section, if an employee leaves
 
16 state or county employment and returns to state or county
 
17 employment after the effective date of this Act, then the
 
18 employee's years of service shall be computed in the same manner
 
19 as set forth in chapter 88.
 

 
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 1      (c)  The State through the department of budget and finance
 
 2 and the several counties through their respective departments of
 
 3 finance shall pay to the fund a monthly contribution equal to
 
 4 one-half of the retired employee's monthly medicare or
 
 5 nonmedicare premium based on a self plan for retired employees
 
 6 with ten or more years but fewer than fifteen years of service;
 
 7 seventy-five per cent of the retired employee's monthly medicare
 
 8 or nonmedicare premium based on a self plan for retired employees
 
 9 with at least fifteen but fewer than twenty-five years of
 
10 service; and one hundred per cent of the retired employee's
 
11 monthly medicare or nonmedicare premium based on a self plan for
 
12 retired employees with twenty-five or more years of service for
 
13 the following benefits:
 
14      (1)  For hospital, medical, and surgical benefits for a
 
15           health benefits plan for each of their respective
 
16           employee-beneficiaries or their respective employee-
 
17           beneficiaries and their dependent-beneficiaries
 
18           enrolled under this section;
 
19      (2)  For prescription drug benefits of a health benefits
 
20           plan for each of their respective employee-
 
21           beneficiaries or their respective employee-
 
22           beneficiaries and their dependent-beneficiaries
 
23           enrolled under this section;
 

 
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 1      (3)  For vision care benefits of a health benefits plan for
 
 2           each of their respective employee-beneficiaries or
 
 3           their respective employee-beneficiaries and their
 
 4           dependent-beneficiaries enrolled under this section;
 
 5           and
 
 6      (4)  For adult dental benefits of a health benefits plan for
 
 7           each of their respective employee-beneficiaries or
 
 8           their respective employee-beneficiaries and their
 
 9           spouses enrolled under this section.
 
10      If both husband and wife are employee-beneficiaries, the
 
11 total contribution by the State or the appropriate county, after
 
12 an employee's retirement pursuant to this section, shall not
 
13 exceed the monthly contribution of two self plans.  If the
 
14 employee-beneficiary and the spouse are state or county retired
 
15 employees, the total contribution by the State or the appropriate
 
16 county, after an employee-beneficiary's retirement pursuant to
 
17 this section, shall not exceed the monthly contributions of two
 
18 self plans.
 
19      (d)  After an employee-beneficiary's retirement pursuant to
 
20 this section, the total monthly premiums for each child who has
 
21 not attained the age of nineteen of all employee-beneficiaries
 
22 who are enrolled in the fund's dental plan for children under
 
23 this section shall be borne by the retired employee.
 

 
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 1      (e)  The State through the department of budget and finance
 
 2 and the several counties through their respective departments of
 
 3 finance shall pay to the fund a monthly contribution equal to the
 
 4 total monthly premium for each retired employee enrolled in the
 
 5 fund's group life insurance benefits plan under this section.
 
 6      (f)  For the purpose of this section, the retired employee's
 
 7 monthly medicare and nonmedicare premiums for the hospital,
 
 8 medical, and surgical plan, the prescription drug plan, the
 
 9 vision care plan, and the adult dental plan shall be established
 
10 annually by the board and shall be equal to the retired
 
11 employee's medicare and nonmedicare premiums for the hospital,
 
12 medical, and surgical plan, the prescription drug plan, the
 
13 vision care plan, and the adult dental plan contracted by the
 
14 fund with the largest enrollment.
 
15      (g)  The State through the department of budget and finance
 
16 and the several counties through their respective departments of
 
17 finance shall advance the amount of their respective employee-
 
18 beneficiaries' contributions to the fund on or before the first
 
19 day of each month.
 
20      (h)  Contributions made by the State or the several counties
 
21 shall not be considered as wages or salary of an employee-
 
22 beneficiary, and no employee-beneficiary shall have any vested
 
23 right in or be entitled to receive any part of any contribution
 

 
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 1 made to the fund."
 
 2      SECTION 2.  Chapter 87, Hawaii Revised Statutes, is amended
 
 3 by adding a new section to be appropriately designated and to
 
 4 read as follows:
 
 5      "§87-    State and county contributions to the fund;
 
 6 employees retiring after December 31, 2001 and deceased.  This
 
 7 section shall apply to state and county contributions to the fund
 
 8 for employees retiring after December 31, 2001.  The State
 
 9 through the department of budget and finance and the several
 
10 counties through their respective departments of finance shall
 
11 pay to the fund monthly contributions for the retired employee
 
12 whether enrolled in a self or family plan as specified in
 
13 sections 87-4.5, 87-4.6, 87-6, and 87-  , except that one-half of
 
14 the monthly contributions for the employee-beneficiary or
 
15 employee-beneficiary with dependent-beneficiaries shall be paid
 
16 once the employee, as specified in section 87-(5)(A)(v), is
 
17 deceased."
 
18      SECTION 3.  Section 87-3, Hawaii Revised Statutes, is
 
19 amended by amending subsection (b) to read as follows:
 
20      "(b)  To the extent that contributions are provided for
 
21 group life insurance benefits in sections 87-4 [and], 87-4.5,
 
22 87-4.6, 87-6, and 87-  (e), the fund shall also be used for the
 
23 purpose of providing group life insurance benefits to employees."
 

 
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 1      SECTION 4.  Section 87-4.5, Hawaii Revised Statutes, is
 
 2 amended by amending subsection (a) to read as follows:
 
 3      "§87-4.5  State and county contributions to fund; retired
 
 4 employees with fewer than ten years of service.(a)  This
 
 5 section shall apply to state and county contributions to the fund
 
 6 for employees specified in section 87-1(5)(A)(v), except those
 
 7 hired after June 30, 1996, under sections 87-4.6 and 87-  , who
 
 8 retire after June 30, 1984, with fewer than ten years of credited
 
 9 service, excluding sick leave."
 
10      SECTION 5.  Section 87-6, Hawaii Revised Statutes, is
 
11 amended by amending subsection (c) to read as follows:
 
12      "(c)  Notwithstanding any other law to the contrary:
 
13      (1)  The beneficiary of an employee who is killed in the
 
14           performance of duty;
 
15      (2)  An employee-beneficiary who retired after June 30,
 
16           1984, due to a disability as defined in sections 88-79
 
17           and 88-285;
 
18      (3)  An employee-beneficiary who retired before July 1,
 
19           1984;
 
20      (4)  An employee-beneficiary who:
 
21           (A)  Was hired before July 1, 1996;
 
22           (B)  Retired after June 30, 1984;
 
23           (C)  Who had ten years or more of credited service,
 

 
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 1                excluding sick leave; and
 
 2      (5)  An employee-beneficiary who was hired after June 30,
 
 3           1996, and who retired with twenty-five or more years of
 
 4           credited service, excluding sick leave except as
 
 5           provided in section 87-  ;
 
 6 or upon death their beneficiary except as provided in 87-  ,
 
 7 including employees who retired prior to the establishing of the
 
 8 fund and their beneficiaries, or the beneficiary of any employee-
 
 9 beneficiary, as described in section 87-1(6) shall not be
 
10 required to make any contribution to the fund.  The monthly
 
11 contribution of the persons identified in this subsection shall
 
12 be financed by the State through the department of budget and
 
13 finance and the several counties through their respective
 
14 departments of finance for each of their respective employee-
 
15 beneficiaries."
 
16      SECTION 6.  Section 87-22.3, Hawaii Revised Statutes, is
 
17 amended to read as follows:
 
18      "§87-22.3  Determination of health benefits plans.  Pursuant
 
19 to [section] sections 87-4, 87-4.5, 87-4.6, 87-6, 87-  (c), and
 
20 87-  , the board of trustees shall provide health benefits to
 
21 employee-beneficiaries in the following manner:
 
22      (1)  For those employee-beneficiaries who are not
 
23           participating in a health benefits plan of an employee
 

 
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 1           organization (hereafter "nonparticipating employee-
 
 2           beneficiaries"), the board of trustees shall establish
 
 3           health benefits plans and the requirements for
 
 4           eligibility under the health benefits plans.  Any rate
 
 5           credit or reimbursement from any carrier derived from
 
 6           employee-beneficiary rate contributions to health
 
 7           benefits plans of nonparticipating employee-
 
 8           beneficiaries or interest derived therefrom may be used
 
 9           to improve the respective health benefits plans of
 
10           nonparticipating employee-beneficiaries or to reduce
 
11           the employee-beneficiary's respective share of monthly
 
12           contributions to a health plan; or
 
13      (2)  For employee-beneficiaries who participate in the
 
14           health benefits plan of an employee organization, the
 
15           board of trustees shall pay a monthly contribution for
 
16           each employee-beneficiary, in the amount provided in
 
17           [section] sections 87-4(a), 87-4.5(b), 87-4.6(c), 87-
 
18           6(c), 87-  (c), and 87-  , or the actual monthly cost
 
19           of the coverage, whichever is less, towards the
 
20           purchase of health benefits under the health benefits
 
21           plan of an employee organization."
 
22      SECTION 7.  Section 87-22.5, Hawaii Revised Statutes, is
 
23 amended to read as follows:
 

 
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 1      "§87-22.5  Determination of dental plan benefits.  (a)
 
 2 Pursuant to [section] sections 87-4, 87-4.5, 87-4.6, 87-6, and
 
 3 87-  , the board of trustees shall provide dental plan benefits
 
 4 to the children of employee-beneficiaries who have not attained
 
 5 the age of nineteen in the following manner:
 
 6      (1)  For those children of employee-beneficiaries who are
 
 7           not participating in a dental program of an employee
 
 8           organization (hereafter called "nonparticipating
 
 9           employee-beneficiaries"), the board shall determine a
 
10           dental plan and eligibility requirements for such
 
11           benefits based upon a statutory monthly contribution
 
12           per enrolled child;
 
13      (2)  For those children of employee-beneficiaries who
 
14           participate in the dental program of an employee
 
15           organization, the board shall allot the statutory
 
16           monthly contribution per enrolled child or the actual
 
17           monthly cost of the child's coverage, whichever is
 
18           less, towards the purchase of dental plan benefits
 
19           under the dental program of an employee organization;
 
20           provided that no enrolled child shall have more than
 
21           one allotment a month; or
 
22      (3)  Paragraphs (1) and (2) notwithstanding, an employee-
 
23           beneficiary shall be required to enroll all of the
 

 
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 1           employee-beneficiary's children who are under the age
 
 2           of nineteen in the children's dental plan for
 
 3           nonparticipating employee-beneficiaries or the dental
 
 4           program of an employee organization.
 
 5      (b)  Pursuant to section 87-  (d), the board of trustees
 
 6 shall provide dental plan benefits to the children of employee-
 
 7 beneficiaries who have not attained the age of nineteen and who
 
 8 are not participating in a dental program of an employee
 
 9 organization.  The board shall determine a dental plan and
 
10 eligibility requirements for such benefits based upon a statutory
 
11 monthly contribution per enrolled child."
 
12      SECTION 8.  Section 87-23, Hawaii Revised Statutes, is
 
13 amended to read as follows:
 
14      "§87-23  Determination of benefits under the group life
 
15 benefit program or group life insurance program.  Pursuant to
 
16 [section] sections 87-4, 87-4.5, 87-4.6, 87-6, and 87-  (e), the
 
17 board of trustees shall provide benefits under a group life
 
18 benefit program or group life insurance program to employees in
 
19 the following manner:
 
20      (1)  For those employees who are not participating in a
 
21           group life benefit program or group life insurance
 
22           program of an employee organization (hereafter
 
23           "nonparticipating employees"), the board shall
 

 
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 1           determine a group life insurance benefit plan and
 
 2           eligibility requirements for such benefits based upon
 
 3           the amount to be contributed per employee under
 
 4           [section] sections 87-4(c)[;], 87-4.5, 87-4.6, 87-6,
 
 5           and 87-  (e);
 
 6      (2)  For those employees who participate in a group life
 
 7           benefit program or group life insurance program of an
 
 8           employee organization, the board shall pay a monthly
 
 9           contribution for each employee, in the amount
 
10           determined under [section] sections 87-4(c), 87-4.5,
 
11           87-4.6, 87-6, and 87-  (e), or the actual monthly cost
 
12           of the coverage, whichever is less, towards the
 
13           purchase of benefits under the group life benefit
 
14           program or group life insurance program of an employee
 
15           organization; or
 
16      (3)  Paragraphs (1) and (2) notwithstanding, an employee who
 
17           is participating in a group life benefit program or
 
18           group life insurance program of an employee
 
19           organization may continue such plan and pay all of the
 
20           premiums required while enrolled under paragraph (1);
 
21           provided that no employee shall have more than one
 
22           contribution from the board per month."
 
23      SECTION 9.  Section 87-27, Hawaii Revised Statutes, is
 

 
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 1 amended to read as follows:
 
 2      "§87-27  Supplemental plan to federal Medicare.  Any other
 
 3 provision of this chapter notwithstanding, the board of trustees
 
 4 shall establish, effective July 1, 1996, a health benefit plan
 
 5 which takes into account benefits available to an employee-
 
 6 beneficiary and spouse under the federal Medicare plan, subject
 
 7 to the following conditions:
 
 8      (1)  There shall be no duplication of benefits payable under
 
 9           federal Medicare but the plan so established by the
 
10           board shall be supplemental to the federal Medicare
 
11           plan;
 
12      (2)  The State through the department of budget and finance
 
13           and the several counties through their respective
 
14           departments of finance shall pay to the fund a monthly
 
15           contribution of $45.50 or the federal Medicare plan
 
16           rate, whichever is less, for voluntary medical
 
17           insurance coverage under federal Medicare [may be paid
 
18           by the fund, in such manner as the board shall specify,
 
19           in the case of an] for each employee-beneficiary who is
 
20           a retired employee, and spouse while the employee-
 
21           beneficiary is living, including members of the old
 
22           pension system and, after death, the employee-
 
23           beneficiary's spouse [provided] if the spouse qualifies
 

 
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 1           as an employee-beneficiary[; provided that the
 
 2           counties, through their respective departments of
 
 3           finance, shall reimburse the fund for any contributions
 
 4           made for county employee-beneficiaries under this
 
 5           paragraph];
 
 6      (3)  The benefits available under the plan, when taken
 
 7           together with the benefits available under the federal
 
 8           Medicare plan shall, as nearly as is possible,
 
 9           approximate the benefits available under the plans set
 
10           forth in section 87-22.  If, for any reason, a
 
11           situation develops where the benefits available under
 
12           the supplemental plan and the federal Medicare plan
 
13           substantially differ from those that would otherwise be
 
14           available, the board is authorized to correct this
 
15           inequity to assure substantial equality of benefits;
 
16      (4)  Notwithstanding any other law to the contrary, all
 
17           employee-beneficiaries or dependent-beneficiaries who
 
18           are eligible to enroll in the federal Medicare Part B
 
19           medical insurance plan shall enroll in that federal
 
20           plan as a requirement to receive the contributions and
 
21           to participate in the employee benefit plans described
 
22           in this chapter.  This paragraph shall pertain to
 
23           retired employees and their spouses and the surviving
 

 
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 1           spouses of deceased retirees and employees killed in
 
 2           the performance of duty; and
 
 3      (5)  The board of trustees shall determine which employee-
 
 4           beneficiaries and dependent-beneficiaries, who are not
 
 5           enrolled in the federal Medicare Part B medical
 
 6           insurance plan, may participate in such other plans as
 
 7           are set forth in section 87-22."
 
 8      SECTION 10.  Statutory material to be repealed is bracketed.
 
 9 New statutory material is underscored.
 
10      SECTION 11.  This Act shall take effect upon its approval.
 
11 
 
12                           INTRODUCED BY:_________________________
 

 
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