HB2859.DOC

HOUSE OF REPRESENTATIVES	H.B. NO.	2859
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND.

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

SECTION 1. Purpose. The purpose of this Act is to require the board of trustees of the Hawaii employer-union health benefits trust fund to design and offer a health benefits plan for active state employees and their dependent-beneficiaries that does not exceed a specified maximum contribution by the State.

SECTION 2. Definitions. The definitions under section 87A-1, Hawaii Revised Statutes, shall apply for the purposes of this Act.

In addition:

(1) "Active state employee" means an "employee", as defined under section 87A-1, of the state government, but excluding a retired member of the employees' retirement system, county pension system, or police, firefighters, or bandsmen pension system of the State or county;

(2) "Maximum state contribution" means the portion of the projected health benefits plan cost to be borne by the State through contributions by state departments and agencies; and

(3) "Projected health benefits plan cost" means the projected sum of the claims to be paid, claims to be incurred, reserve margin to be set aside for the health benefits plan, and administrative expenses incurred by the trust fund staff or any contracted administrator of the health benefits plan.

SECTION 3. Maximum state contribution for health care benefits plan offered to active state employees. (a) Notwithstanding section 87A-16, Hawaii Revised Statutes, or any other law to the contrary, from fiscal year 2010-2011 to fiscal year 2014-2015, the board of trustees of the Hawaii employer-union health benefits trust fund shall offer to active state employees and their dependent-beneficiaries a health benefits plan, the maximum state contribution for which shall be the following:

(1) For fiscal year 2010-2011--$131,769,338;

(2) For fiscal year 2011-2012--$131,769,338;

(3) For fiscal year 2012-2013--$131,769,338;

(4) For fiscal year 2013-2014--The dollar amount equaling $131,768,938 adjusted by the percentage change of general revenues between fiscal year 2012-2013 and 2013-2014 as projected by the council on revenues at its last meeting in calendar year 2013; and

(5) For fiscal year 2014-2015--The dollar amount calculated under paragraph (4) adjusted by the percentage change of general revenues between fiscal year 2013-2014 and 2014-2015 as projected by the council on revenues at its last meeting in calendar year 2014.

The board of trustees shall design the health benefits plan offered to active state employees during a fiscal year so that the maximum state contribution for that fiscal year does not exceed fifty per cent of the projected health benefit plan cost for that fiscal year. In designing the plan from fiscal year to fiscal year, the board may change the health benefits to be offered, deductibles, co-insurance, or co-payments to be required, reserve to be set aside, or persons to be covered. The board may offer additional benefits or coverage beyond that of the designed plan if the active state employee pays the entire cost of the additional benefits or coverage.

(b) Subsection (a) shall not apply to the health benefits plan offered to retired state employees, active county employees, or retired county employees and their dependent-beneficiaries. The board may offer to those employees a health benefits plan different from the health benefits plan offered to active state employees.

SECTION 4. Legislative intent with respect to appropriations in future fiscal biennia. (a) The legislature intends for this Act to serve as a guide when making appropriations in the future to the Hawaii employer-union health benefits trust fund for the health benefits plan of active state employees and their dependent-beneficiaries.

(b) This Act shall not bind this or any future legislature to appropriating in a fiscal year a specific amount listed under section 3(a) for the health benefits plan for active state employees and their dependent-beneficiaries. This or any future legislature shall have full discretion to amend this Act or appropriate more or less than a specific amount listed under section 3(a) for a fiscal year, and no person shall have any claim or cause of action against the legislature or State because of the amendment or appropriation.

SECTION 5. Effective date; repeal. This Act shall take effect upon its approval and shall be repealed on June 30, 2015; provided that the repeal shall not affect any claims, rights, or privileges that matured or liabilities or penalties that were incurred during the period this Act is in effect.

INTRODUCED BY:	_____________________________