Report Title:

Employer-Union Health Benefits Trust Fund

Description:

Requires the employer-union health benefits trust fund to establish flexible health benefit option plans for retirees to select benefits coverage under separate option categories. (HB40 HD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

40

TWENTY-THIRD LEGISLATURE, 2005

H.D. 1

STATE OF HAWAII

  

 

A BILL FOR AN ACT

 

RELATING TO PUBLIC EMPLOYEE HEALTH BENEFITS.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 87A, Hawaii Revised Statutes, is amended by adding a new section to part III to be appropriately designated and to read as follows:

"§87A-   Other health plan options; required. In addition to the health benefits offered under this part, the board shall offer a flexible health benefit option plan that enables a retired employee-beneficiary to select types and levels of health benefits coverage tailored to the retired employee-beneficiary's needs. At a minimum, the flexible health benefit option plan shall provide:

(1) As separate option categories, medical, drug, dental, vision, long-term care, and group life insurance at the same level and cost of the coverages provided under sections 87A-16 to 87A-18;

(2) Additional health benefit option categories that are not provided by the board under sections 87A-16 to 87A-18;

(3) The ability to increase or decrease the level of health benefit coverage provided under sections 87A-16 to 87A-l8 for any or all option categories;

(4) That the cost to the State or county for the flexible health benefit option plan shall not exceed the aggregate amount the State or county would contribute had the retired employee-beneficiary not participated in the flexible health benefit option plan; and

(5) That the retired employee-beneficiary who elects to participate in the flexible health benefit option plan:

(A) May allocate the applicable aggregate employer contribution amount under sections 87A-33 to 87A-37, without restriction, among the various option categories selected; and

(B) Shall pay for all costs of the flexible plan exceeding the applicable aggregate contribution."

SECTION 2. Section 87A-l, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

""Flexible health benefit option plan" means a health benefits plan that enables employee-beneficiaries to select levels of health benefit coverage under separate option categories that include but are not limited to medical, drug, dental, vision, long-term care, and group life insurance."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.