STAND. COM. REP. NO.1097
Honolulu, Hawaii
, 2001
RE: S.B. No. 1044
S.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2001
State of Hawaii
Sir:
Your Committee on Labor and Public Employment, to which was referred S.B. No. 1044, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO PUBLIC EMPLOYEE HEALTH BENEFITS,"
begs leave to report as follows:
The purpose of this bill is to create a new governance structure for public employees' health benefits by establishing the Hawaii Employer-Union Health Benefit Trust Fund, as a single public employee health benefits delivery system.
This bill also:
(1) Retains basically the same eligibility requirements for employee-beneficiaries and dependent-beneficiaries as under current statutes;
(2) Provides equal employer and employee representation through a ten-member board of trustees appointed by the Governor;
(3) Grants greater administrative flexibility to the board of trustees;
(4) Requires that employer contributions for active employees shall be set through collective bargaining;
(5) Establishes fixed monthly employer contribution rates for retirees; and
(6) Imposes cost containment requirements by:
(a) Setting the monthly Medicare Part B reimbursement rate at $45.50, the current Part B reimbursement rate. Any increase to the reimbursement rate will have to be approved by the Legislature;
(b) Reducing the employers' contributions for health benefits for surviving spouses and dependents upon the death of a retiree if the retiree was hired after June 30, 2001; and
(c) Eliminating employer contributions for dependents of retirees who were employees hired on or after June 30, 2001.
The Department of Budget and Finance testified in support of the measure, suggesting amendments and HGEA/AFSCME Local 152, AFL-CIO testified in support of the bill with reservations. The Hawaii State Teachers Association (HSTA) and HSTA-Retired opposed this bill. PEHF, the City and County of Honolulu Department of Human Resources, the United Public Workers, AFSCME, Local 646, AFL-CIO, the Retirees Unit of HGEA/AFSCME Local 152, AFL-CIO, and the Office of Information Practices offered comments.
As affirmed by the record of votes of the members of your Committee on Labor and Public Employment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1044, S.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Labor and Public Employment,
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____________________________ TERRY NUI YOSHINAGA, Chair |