STAND. COM. REP. NO. 986

                                   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 Commerce and Consumer Protection, to which
was referred H.B. No. 1048, 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 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.

     The Hawaii Public Employees Health Fund Board of Trustees
submitted testimony in support of the measure.

     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 plan.  This non-enrollment results in higher monthly
non-Medicare health insurance premiums for not only the members
of the Public Employees Health Fund, but raises the costs for the
Public Employees Health Fund as well.

     Your Committee notes that the measure 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.


 
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                                   STAND. COM. REP. NO. 986
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     Your Committee has amended the measure by making a technical
amendment to correctly reflect existing statutory language.

     As affirmed by the record of votes of the members of your
Committee on Commerce and Consumer Protection that is attached to
this report, your Committee is in accord with the intent and
purpose of H.B. No. 1048, H.D. 1, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as H.B. No. 1048, H.D. 1, S.D. 1, and be referred to the
Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Commerce and
                                   Consumer Protection,



                                   ______________________________
                                   BRIAN KANNO, Co-Chair



                                   ______________________________
                                   BRIAN T. TANIGUCHI, Co-Chair

 
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