Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Third Special Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2 entitled:

begs leave to report as follows:

The purpose of this measure is to help unemployed persons to maintain health care coverage by providing a temporary program of health insurance.

Specifically, this bill creates a temporary health insurance for unemployed persons program to be administered by the Department of Human Services. The program's benefit package is to be similar to the QUEST-Net program. To be eligible, a person must:

(3) Agree to pay the premiums.

The bill appropriates $1,587,600 in fiscal year 2001-2002 and $1,360,800 in fiscal year 2002-2003 to the Department of Human Services for the temporary program.

In addition, a person who is entitled to continue health insurance coverage under the Consolidated Omnibus Budget Reconciliation Act, may apply for reimbursement for medical and prescription drug coverage ($125 and $315 per month for singles and families) for up to three months from the effective date of the individual's loss of coverage. To be eligible, the person must:

The bill appropriates $2,000,000 in fiscal year 2001-2002 to the Department of Labor and Industrial Relations for these reimbursements.

The bill takes effect on December 1, 2001 and is repealed on December 21, 2002.

Your Committee received testimony in support of this measure from the Department of Human Services, the Department of Labor and Industrial Relations, the Healthcare Association of Hawaii, the Hawaii State Teachers Association, the National Alliance for the Mentally Ill Oahu, the Lieutenant Governor, Hawaii Primary Care Association, Hawaii Nurses' Association, Chamber of Commerce of Hawaii, Mental Health Association in Hawaii, and one individual.

Your Committee finds that the terrorist attacks of September 11, 2001 have caused significant numbers of Hawaii residents to lose their jobs or accept reduced hours of work and, as a result, to lose their health insurance coverage. Your Committee further finds that the temporary health insurance for unemployed persons program, the reimbursements to those eligible under COBRA, and the appropriations to fund these two initiatives, are fully justified and necessary under today's extraordinary circumstances.

It is the intent of your Committee that the funds appropriated for the temporary health insurance for unemployed persons program and for reimbursements to those eligible under COBRA, be made available on a priority basis to those who demonstrate the greatest need. It is the further intent of your Committee to have the Department of Human Services and the Department of Labor and Industrial Relations to develop a needs assessment process to determine a person's priority to receive assistance under the temporary health insurance for unemployed persons program and for reimbursements under COBRA, respectively.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee concurs with the intent and purpose of S.B. No. 2 and recommends that it pass Second Reading and be placed on the calendar for Third Reading.