Bill Text: HI HR52 | 2012 | Regular Session | Introduced

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Bill Title: Employer-Union Health Benefits Trust Fund; Premiums

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2012-03-06 - (H) Referred to LAB, FIN, referral sheet 40 [HR52 Detail]

Download: Hawaii-2012-HR52-Introduced.html

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HOUSE OF REPRESENTATIVES	H.R. NO.	52
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII

HOUSE RESOLUTION

 

REQUESTING A STUDY ON THE PREVALENCE, if any, of unnecessary payments made from the Employer-Union Health Benefits Trust Fund to insurers for health benefits plan premiums of deceased individuals, AND AN ANALYSIS OF POSSIBLE SOLUTIONS, STATUTORY OR OTHERWISE, THAT MAY ELIMINATE OR SIGNIFICANTLY REDUCE SUCH PAYMENTS.

 

 

 

     WHEREAS, state and county employees, retirees, and their dependents have been enrolled in a single health benefits delivery system, known as the Employer-Union Health Benefits Trust Fund, for over a decade; and

 

     WHEREAS, health benefits are significant costs for public employers; and

 

     WHEREAS, the unfunded actuarial accrued liability of the Employer-Union Health Benefits Trust Fund is approximately $14,000,000,000; and

 

     WHEREAS, monies in the Employer-Union Health Benefits Trust Fund should not be spent unnecessarily; and

 

     WHEREAS, other jurisdictions within the United States of America, such as the City of Buffalo and the City of Woonsocket, have endured public embarrassment as those jurisdictions have spent monies unnecessarily to pay for the health benefits plan premiums of the deceased; and

 

     WHEREAS, the State should take steps to avoid wasting monies from the Employer-Union Health Benefits Trust Fund in a similar matter; and

 

     WHEREAS, monies from the Employer-Union Health Benefits Trust Fund are distributed to insurers for the payment of beneficiaries' health benefits plan premiums, except with regard to premiums for the benefit of out-of-state retirees who receive premium reimbursements pursuant to section 87A-33.5, Hawaii Revised Statutes; and

 

     WHEREAS, under sections 4.11 and 4.12(c), Employer-Union Health Benefits Trust Fund Administrative Rules, coverage under a health benefits plan may be cancelled if an employee-beneficiary is required to pay his or her required contributions toward health benefit plan premiums but fails to timely pay those contributions; and

 

     WHEREAS, the death of such an employee-beneficiary would automatically stop the distribution of monies from the Employer-Union Health Benefits Trust Fund to the employee-beneficiary's insurer for payments of health benefits plan premiums; and

 

     WHEREAS, conversely, there are some "noncontributing beneficiaries" who are not current employees, who are not dependent-beneficiaries of current employees, and who are not required to pay any contributions toward their health benefit plan premiums; and

 

     WHEREAS, under current statutes and administrative rules, the death of a noncontributing beneficiary does not appear to automatically stop the distribution of monies from the Employer-Union Health Benefits Trust Fund to the noncontributing beneficiary's insurer for payments of health benefits plan premiums; and

 

     WHEREAS, it is therefore possible that the administration of the Employer-Union Health Benefits Trust Fund, while attempting to fulfill its duties under the law, is nonetheless sending unnecessary health benefit plan premium payments to insurers; and

 

     WHEREAS, the statutes or administrative rules may require revision in order to create a permanent process that prompts the cancellation of health benefits plans for deceased noncontributing beneficiaries; and

 

     WHEREAS, however, any change to Chapter 87A, Hawaii Revised Statutes, or relevant administrative rules could have wide-ranging and far-reaching impacts on the beneficiaries of the Employer-Union Health Benefits Trust Fund; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Twenty-sixth Legislature of the State of Hawaii, Regular Session of 2012, that the Board of Trustees of the Employer-Union Health Benefits Trust Fund and the Department of Budget and Finance are requested to study the prevalence, if any, of unnecessary payments made from the Employer-Union Health Benefits Trust Fund to insurers for health benefits plan premiums of deceased individuals; and

 

     BE IT FURTHER RESOLVED that the Board of Trustees of the Employer-Union Health Benefits Trust Fund and the Department of Budget and Finance, with the assistance of the Department of Health as needed, are requested to make an analysis of the effectiveness and fairness of solutions, statutory or otherwise, that may eliminate or greatly reduce such unnecessary payments, including but not limited to:

 

(1)  The Board of Trustee's submission of, on an annual basis, a list of noncontributing beneficiaries to the Department of Health; provided that the Department of Health monitor the issuance of certificates of death for each of the individuals on the list; provided further that the Department of Health submit a responsive list of deceased noncontributory beneficiaries to the Board of Trustees; provided further that the Board of Trustees cancel the health benefit plans of anyone on the Department of Health's responsive list;

 

(2)  The Board of Trustee's submission of, on an annual basis, a letter to each noncontributing beneficiary, requesting confirmation of the noncontributing beneficiary's desire to continue to receive benefits; provided that the noncontributing beneficiary's health plan is cancelled if the beneficiary does not respond; provided further that any noncontributing beneficiary has the right to appeal;

 

(3)  Any other solution that is fair and equitable to all relevant parties; and

 

     BE IT FURTHER RESOLVED that the Board of Trustees of the Employer-Union Health Benefits Trust Fund and the Department of Budget and Finance are requested to submit their study and analysis to the Legislature at least twenty days prior to the convening of the Regular Session of 2013; and

 

     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Chairperson of the Board of the Employer-Union Health Benefits Trust Fund, the Director of Finance, and the Director of Health.

 

 

 

	OFFERED BY:	_____________________________

Report Title: 

Employer-Union Health Benefits Trust Fund; Premiums