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 S.B. No. 2272 entitled:

begs leave to report as follows:

The purpose of this measure is to require retired individuals who receive reimbursements from the Hawaii employer-union health benefits trust fund for Medicare part B premiums to designate a financial institution of their choice for direct deposit of reimbursements after July 1, 2006.

In addition, this measure also clarifies the language of the existing law relating to health benefits plan supplemental to Medicare under section 87A-23, Hawaii Revised Statutes, by making technical nonsubstantive amendments.

Your Committee believes that this measure will increase the efficiency of reimbursements made by the Hawaii employer-union health benefits trust fund and reduce operating costs.

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. 2272 and recommends that it pass Third Reading.