STAND. COM. REP. NO. 1498

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1048
                                        H.D. 1
                                        S.D. 1




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

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 1048, H.D. 1, S.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 measure is to reduce the health
insurance contributions of public employers by requiring state
and county retired employees and their spouses to enroll in the
federal Medicare Part B medical insurance plan, if eligible.

     Your Committee finds that, according to the Public Employees
Health Fund, approximately 540 retired employees, including
spouses, may be eligible for, but are not enrolled in the federal
Medicare Part B plan.  By not enrolling in federal Medicare Part
B, these eligible employees increase the monthly non-Medicare
health insurance premiums for all members of the Public Employees
Health Fund.  This measure also enables the Board of Trustees of
the Public Employees Health Fund to exempt members from enrolling
in the Medicare Part B plan on a case-by-case basis.

     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 H.B. No.
1048, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

 
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                                   STAND. COM. REP. NO. 1498
                                   Page 2


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



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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