Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 762, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to change the date the employer contribution cap on monthly contributions for retiree health benefits plans is adjusted from July 1, 2004 to July 1, 2002.

The bill also changes the method of calculating that contribution by using the medicare part B premium rate in effect at the beginning of the previous plan year, instead of the rate in effect at the end of the previous plan year.

Your Committee finds that this bill will more accurately and fairly reflect changes in health care costs and provide a more equitable adjusted base to calculate monthly contributions.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 762, S.D. 1, and recommends that it pass Third Reading.