STAND. COM. REP. NO. 676-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2449
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Labor and Public Employment and Finance,
to which was referred H.B. No. 2449 entitled: 

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

beg leave to report as follows:

     The purpose of this bill is to require the Public Employees
Health Fund Board (Board) of Trustees to:

     (1)  Implement the following plans for the benefit plan year
          beginning July 1, 2001: 

          (A)  Preferred Provider Organization Plans (PPO);

          (B)  Medicare+Choice Plans; and

          (C)  Drug benefit plans;

          and

     (2)  Revise the methodology for computing out-of-pocket
          expenses to ensure comparability for all employee
          beneficiaries.

     The Department of Budget and Finance and the Department of
Human Resources Development testified in support of this measure.
The Board testified that it takes no position on this bill.  The
United Public Workers, the Hawaii Government Employees

 
 
                                 STAND. COM. REP. NO. 676-00
                                 Page 2

 
Association, the Hawaii State Teachers Association - Retired, the
Oahu Retired Teachers Association, the Hawaii State Teachers
Association, and the University of Hawaii Professional Assembly
testified in opposition to this bill.

     Your Committees have amended this bill by:

     (1)  Changing the effective date to July 1, 2005; and

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

     As affirmed by the records of votes of the members of your
Committees on Labor and Public Employment and Finance that are
attached to this report, your Committees are in accord with the
intent and purpose of H.B. No. 2449, as amended herein, and
recommend that it pass Second Reading in the form attached hereto
as H.B. No. 2449, H.D. 1, and be placed on the calendar for Third
Reading.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Labor and Public
                                   Employment and Finance,



_______________________________    _______________________________
DWIGHT Y. TAKAMINE, Chair          TERRY NUI YOSHINAGA, Chair