Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Health, to which was referred H.C.R. No. 132 entitled:

begs leave to report as follows:

The purpose of this concurrent resolution is to request the Department of Labor and Industrial Relations (DLIR) to develop a plan to equalize the amount of the employer contribution for prepaid health care plans in the public and private sectors.

The Hawaii Business League submitted testimony in support of this measure. DLIR supported the intent of the measure with amendments.

Your Committee understands that HPHCA was designed to protect Hawaii's people against catastrophic economic hardship resulting from the high cost of medical care. However, DLIR testified that Congressional action is necessary to amend HPHCA. Moreover, public sector benefits can be negotiated through the collective bargaining process, while private sector benefits are fixed by law.

Health insurance premiums have risen as a result of increased health care costs. Therefore, many employers today find that they are paying approximately 100 percent of their employee's health care premiums.

Accordingly, your Committee has amended this measure by changing its scope to address DLIR concerns. As amended, this measure requests the assistance of Hawaii's Congressional Delegation to amend the HPHCA, instead of requesting the DLIR study. Further, this measure has been amended by:

As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee concurs with the intent and purpose of H.C.R. No. 132, as amended herein, and recommends that it be referred to the Committee on Labor and Public Employment in the form attached hereto as H.C.R. No. 132, H.D. 1.