STAND. COM. REP. NO. 1972

Honolulu, Hawaii

, 2023

RE: S.B. No. 1314

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 1314, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUND SPOUSAL MEDICARE PART B PREMIUM REIMBURSEMENT,"

begs leave to report as follows:

The purpose of this measure is to exclude Medicare Part B premium reimbursement by the State and counties for the spouses of retired employees hired after June 30, 2023.

Your Committee received testimony in support of this measure from the Department of Budget and Finance. Your Committee received testimony in opposition to this measure from the State of Hawaii Organization of Police Officers and one individual. Your Committee received comments on this measure from the Hawaii Employer-Union Health Benefits Trust Fund Board of Trustees and Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO.

Your Committee finds that the State and counties reimburse retirees and their spouses for Medicare Part B premiums, including spouses of retirees hired after June 30, 2001. The Hawaii Employer-Union Health Benefits Trust Fund Board of Trustees estimates that eliminating Medicare Part B premium reimbursements for spouses of employees hired on or after July 1, 2023, will reduce the State's future annual required contributions by $1,200,000,000 over a thirty-year period. Retirees, vested employees, terminated employees, and current employees hired prior to July 1, 2023, will not be impacted by this measure.

Your Committee has amended this measure by changing the effective date to July 1, 2023.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1314, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1314, S.D. 2, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

KYLE T. YAMASHITA, Chair