Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2309 entitled:

begs leave to report as follows:

The purpose of this measure is to improve the efficiency of the operations of the Hawaii Employer-Union Health Benefits Trust Fund.

Specifically, this bill requires each employee-beneficiary and the employee-beneficiary's spouse who receive reimbursement from the Fund for Medicare part B premiums after July 1, 2006, to designate a financial institution account for direct deposits of reimbursements. The bill also makes nonsubstantive statutory amendments for the purposes of clarification and consistency.

Your Committee believes that this bill will reduce costs and administrative fees incurred by the Hawaii Employer-Union Health Benefits Trust Fund, thus saving taxpayer dollars, and also make the receipt of reimbursements by employee-beneficiaries faster, safer, and more efficient.

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 H.B. No. 2309, and recommends that it pass Third Reading.