HB698.DOC

SECTION 1. The purpose of this Act is to make health insurance temporarily available to individuals who become uninsured due to the loss of a job for reasons other than voluntary separation, discharge for work-related misconduct, or work stoppage caused by a labor dispute.

SECTION 2. (a) There is established the Hawaii health care program as a temporary three-year pilot program to provide health care coverage to certain individuals who became uninsured due to the loss of a job. The department of human services shall provide health care coverage through a public-private partnership, established as a contract to provide health and human services pursuant to chapter 103F, Hawaii Revised Statutes, between the department and one or more managed care plans operating in the state under chapter 432, Hawaii Revised Statutes, that offers accident and health or sickness insurance plans.

(b) It is not the intent of the legislature to discourage employers from offering to pay, or from paying for, dependent coverage for their employees, or that this Act supplant employer‑sponsored dependent coverage plans.

(1) Be at least eighteen years of age;

(2) Be a Hawaii resident;

(3) Have been uninsured continuously for at least six months due to the loss of a job, for reasons other than voluntary separation, discharge for work-related misconduct, or work stoppage caused by a labor dispute; and

(4) During the six months the individual was uninsured, have been ineligible for any other state or federal health care coverage and be currently ineligible for any other state or federal health care coverage.

(d) Coverage received based upon satisfaction of the eligibility requirements of this Act shall continue until the earlier of the following:

(1) The individual becomes employed and covered by a prepaid health care plan; or

(2) The expiration of six months following the commencement of health care coverage for the individual under this Act.

(e) The department of human services and the managed care plans participating in the pilot program shall share equally in the cost of the premium for each individual enrolled in the program subject to the appropriation of general funds for the program.

(f) The department of human services shall pay the State's share of the premiums under the program on a quarterly basis.

(g) The managed care plans participating in the pilot program shall be responsible for determining the eligibility of program applicants and of enrolling applicants in the pilot program.

(h) The managed care plans participating in the program shall provide to the department of human services and the legislature a quarterly report including the number of program enrollees.

(i) The department of human services shall ensure that other private organizations have the opportunity to partner with the State to offer coverage to uninsured individuals under the program; provided that plan benefits to be provided shall be equal to or better than those offered through the program established by the State and managed care plans under subsection (a).

(j) The department of human services and any participating managed care plan shall report to the legislature no later than twenty days prior to the start of the 2010 and 2011 regular sessions on the pilot program, including:

(1) Any problems encountered in the administration of the program;

(2) The amount of funding used and for what purposes; and

(3) Any proposed legislation.

SECTION 3. 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 same sum or so much thereof as may be necessary for fiscal year 2010-2011 to fund the Hawaii health care program established by this Act.

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

SECTION 4. This Act shall take effect upon its approval; provided that:

(1) Section 3 of this Act shall take effect on July 1, 2009; and

(2) This Act shall be repealed on June 30, 2012.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	698
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII