STAND. COM. REP. NO.1381
Honolulu, Hawaii
, 2001
RE: S.B. No. 1058
S.D. 1
H.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 Finance, to which was referred S.B. No. 1058, 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 bill is to reduce public employer costs by:
(1) Requiring the amount ported to employee organizations for health benefit plans and group life insurance be based on the most cost effective plan that provides the same level of benefits for participants in the plans of the Public Employee Heath Fund (PEHF) and employee organizations;
(2) Confirming the employer's authority to audit employee organization health benefits and group life insurance plans; and
(3) Requiring employee organizations to return to PEHF the employer's share of refunds from their insurance carriers.
The Department of Budget and Finance (B&F) testified in support of this bill with recommended amendments. The Hawaii Government Employees Association, United Public Workers, and Hawaii State Teachers Association testified in opposition to the bill.
Your Committee has amended this measure by:
(1) Removing the language limiting the employer contribution to:
(A) Sixty percent of the health benefit plan selected by the employee-beneficiary; and
(B) The actual cost of the dental plan selected by the employee-beneficiary and the group life benefit program or group life insurance program selected by the employee;
and substituting negotiated rate language in anticipation of future negotiated agreements, and limiting the employer contribution to an amount based on the most cost-effective plan;
(2) Appropriating $200,000 in each year of fiscal biennium 2002-2003 for B&F to audit employee organization plans;
(3) Having the Act take effect upon approval; and
(4) Making technical, nonsubstantive amendments for purposes of clarity, style, and consistency.
As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1058, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1058, S.D. 1, H.D. 1.
Respectfully submitted on behalf of the members of the Committee on Finance,
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____________________________ DWIGHT Y. TAKAMINE, Chair |
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