THE SENATE	S.C.R. NO.	240
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII

SENATE CONCURRENT

RESOLUTION

requesting the Auditor to review all federal health care reform legislation passed by Congress and its effect on the hawaii prepaid health care act.

     WHEREAS, on September 2, 1974, Congress enacted the Employment Retirement Income Security Act of 1974, which, among other things, regulates the operation of health benefit plans and preempts all state laws that relate to any employee benefit plan; and

     WHEREAS, the Hawaii Prepaid Health Care Act was enacted on June 12, 1974, and operates on an exemption from the Employment Retirement Income Security Act of 1974; and

     WHEREAS, the Hawaii Prepaid Health Care Act provides protection against the cost of medical care that may consume all or an excessive part of a person's resources by mandating certain health care benefits for certain employees in Hawaii; and

     WHEREAS, national health care reform legislation contains a provision to exempt Hawaii's Prepaid Health Care Act‑‑similar in effect to the exemption from the Employment Retirement Income Security Act‑‑if Hawaii's law provides more benefits than what the eventual federal law would provide; and

     WHEREAS, in the event national health care reform becomes a reality, the Legislature must take steps now to ensure it is fully informed of the potential effects on the State's ability to expand the Hawaii Prepaid Health Care Act to cover more people or provide more benefits than under federal law; now, therefore,

     BE IT RESOLVED by the Senate of the Twenty-fifth Legislature of the State of Hawaii, Regular Session of 2010, the House of Representatives concurring, that the Auditor is requested to review all federal health care reform legislation passed by Congress and the potential effect upon the Hawaii Prepaid Health Care Act; and

     BE IT FURTHER RESOLVED that the Auditor is requested to consider:

     (1)  Whether the Hawaii Prepaid Health Care Act may be expanded to cover more people or provide more benefits under existing federal laws, such as the Employment Retirement Income Security Act of 1974, and under any federal health care reform laws that gain passage; and

     (2)  Whether the current exemption for the Hawaii Prepaid Health Care Act from the Employment Retirement Income Security Act of 1974 needs to be modified to permit expanding coverage or benefits; and

     BE IT FURTHER RESOLVED that the Auditor is requested to report its findings and recommendations, including any necessary proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2011; and

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Auditor.

OFFERED BY:

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Report Title: 

Federal Health Care Reform; Effect on Prepaid Health Care Act