HB697 HD1.DOC

SECTION 1. A number of Hawaii-based companies have closed or filed for bankruptcy in 2008, resulting in layoffs and furloughs. Employees of large, well-established companies including airlines, cruise lines, agricultural companies, and retailers, as well as small businesses, have been drastically affected by the economic downturn.

In December 2008, the State reached a nine-year high unemployment rate of 4.9 per cent. Over thirty-two thousand individuals were unemployed in November 2008, an increase of over two thousand from the previous month. By comparison, only eighteen thousand eight hundred fifty individuals were reportedly unemployed in late 2007.

The downturn in nearly every private-sector industry has caused significant numbers of Hawaii residents to be victims of employment furloughs, layoffs, reduced work hours, and terminations. While these individuals may obtain some financial relief through unemployment insurance benefits, they may not be able to continue their health care insurance coverage.

The purpose of this Act is to help unemployed individuals to maintain their health care coverage by providing a temporary health insurance program.

SECTION 2. (a) There is established the temporary health insurance for unemployed persons program within the department of human services to provide temporary healthcare coverage for persons who have become unemployed on or after March 31, 2008.

(b) To be eligible to participate in this program, the individual shall:

(1) Have lost the individual's health insurance as a result of a furlough, a layoff, reduced work hours, or termination of employment on or after March 31, 2008;

(2) Not be eligible for any health insurance coverage from another source; and

(3) Agree to pay for the costs of the individual's health insurance premium.

(c) This program shall have a benefit package similar to the basic benefits provided by the department of human services' QUEST-Net program and shall be administered by the department of human services.

SECTION 3. (a) If an individual is entitled to continue health insurance coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act, the individual may apply for reimbursement of payments made to continue the individual's health insurance medical and prescription drug coverage up to the following monthly amounts:

Individual: $125.00

Family: $315.00

(b) The total reimbursement an individual may collect under this section shall be equal to the specified maximum for up to three months of coverage from the effective date of the individual's loss of coverage.

(1) The individual became unemployed, was furloughed, or suffered a reduction of work hours that has resulted in the loss of the individual's employment-related group health insurance that occurred on or after March 31, 2008, and the individual is ineligible for any other insurance coverage through the individual's spouse or parents;

(2) The individual is entitled to continue health insurance coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act;

(3) The individual is not eligible for any other employment-related group health coverage reimbursement or subsidy to assist the individual with group health insurance coverage;

(4) The individual discloses and certifies in writing the amount paid by the individual for prescription and medical coverage for the three-month period beginning on the effective date of the individual's loss of coverage; and

(5) The individual's employer certifies in writing that the individual is not entitled to any other subsidy offered by the employer or the employer's health insurer.

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2009-2010 and the sum of $ or so much thereof as may be necessary for fiscal year 2010-2011 to administer the temporary health insurance for unemployed persons program established under this Act.

The sums appropriated shall be expended by the department of human services for the purposes of this Act.

SECTION 5. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2009-2010 for the reimbursement of payments for persons entitled to continue health insurance coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act made under this Act.

The sum appropriated shall be expended by the department of labor and industrial relations for the purposes of this Act.

SECTION 6. This Act shall take effect on July 1, 2020, and shall be repealed on June 30, 2010.

HOUSE OF REPRESENTATIVES	H.B. NO.	697
TWENTY-FIFTH LEGISLATURE, 2009		H.D. 1
STATE OF HAWAII