Bill Text: HI HB1725 | 2010 | Regular Session | Introduced
Bill Title: Public Employees' Health Benefits Plan; Exclusion of Prescription Drug Coverage
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2009-05-11 - Carried over to 2010 Regular Session. [HB1725 Detail]
Download: Hawaii-2010-HB1725-Introduced.html
Report Title:
Public Employees' Health Benefits Plan; Exclusion of Prescription Drug Coverage
Description:
From 07/01/2009 to 06/30/2015: (1) prohibits health benefits plan of the employer-union health benefits trust fund from providing prescription drug coverage; and (2)allows board of trustees to make prescription drug benefits available through drug coverage plans that are paid for entirely by employee-beneficiaries.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1725 |
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TWENTY-FIFTH LEGISLATURE, 2009 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE HAWAII EMPLOYER-UNION HEALTH BENEFITS TRUST FUNd.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The purpose of this Act is to address the current and ongoing economic crisis in the State. More specifically, this Act makes certain temporary changes to the Hawaii employer-union health benefits trust fund by:
(1) Prohibiting the health benefits plan of the trust fund from providing prescription drug benefits for the period beginning July 1, 2009, and ending June 30, 2015; and
(2) Allowing the board of trustees of the trust fund to make available prescription drug plans to public employees at no cost to employers during that period.
This Act also makes conforming amendments to the voluntary employees' beneficiary association statute.
SECTION 2. Chapter 87A, Hawaii Revised Statutes, is amended by adding a new section to part III to be appropriately designated and to read as follows:
"§87A- Prescription drug benefits plans; no cost to employers. (a) For the period beginning July 1, 2009, and ending June 30, 2015, the board may offer prescription drug benefits plans to employee-beneficiaries and dependent-beneficiaries at no cost to the State and the counties, as employers, the full costs of which are to be paid by employee-beneficiaries.
(b) The board may establish the prescription drug benefits plans under subsection (a), which shall be exempt from the minimum group requirements of article 10A of chapter 431, and which may provide, pay for, arrange for, or reimburse the costs of prescription drugs for employee-beneficiaries and dependent-beneficiaries.
(c) The board may contract with prescription drug plan insurance carriers for the prescription drug plans. Each employee-beneficiary who elects to enroll in a prescription drug plan under this section shall pay the full monthly premiums, through employee-beneficiary contributions, directly to the board's designated carriers. The employee-beneficiary's monthly contribution shall include the carrier's administrative costs."
SECTION 3. Section 87A-1, Hawaii Revised Statutes, is amended by amending the definition of "health benefits plan" to read as follows:
""Health benefits plan" means:
(1) A group insurance contract or service agreement
that may include medical, hospital, surgical, [prescribed drugs,]
vision, and dental services, in which a carrier agrees to provide, pay for,
arrange for, or reimburse the cost of the services as determined by the board;
or
(2) A similar schedule of benefits established by the board and provided through the fund on a self-insured basis.
The term shall not include any insurance contract, service agreement, or schedule of benefits that includes prescription drug coverage."
SECTION 4. Section 87D-1, Hawaii Revised Statutes, is amended by amending the definition of "employee welfare benefit plan" to read as follows:
""Employee welfare benefit plan"
or "plan" shall mean any plan, fund, or program which is established
by the trust for the purpose of providing participants or their beneficiaries,
through the purchase of insurance or otherwise, medical, surgical, or hospital
care or benefits, or benefits in the event of sickness, accident, disability,
or death[.]; but not prescription drug benefits."
SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2009, and shall be repealed on June 30, 2015; provided that the definition of:
(1) "Health benefits plan" under section 87A‑1, Hawaii Revised Statutes; and
(2) "Employee welfare benefit plan" under section 87D‑1, Hawaii Revised Statutes,
shall be reenacted in the form in which they read on June 30, 2009.
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INTRODUCED BY: |
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