Bill Text: HI HB1017 | 2024 | Regular Session | Introduced
Bill Title: Relating To The Hawaii Employer-union Health Benefits Trust Fund Medicare Part B Premium Reimbursement.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-12-11 - Carried over to 2024 Regular Session. [HB1017 Detail]
Download: Hawaii-2024-HB1017-Introduced.html
HOUSE OF REPRESENTATIVES |
H.B. NO. |
1017 |
THIRTY-SECOND LEGISLATURE, 2023 |
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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 MEDICARE PART B PREMIUM REIMBURSEMENT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the State and counties reimburse
retirees and their spouses medicare part B premiums including income related
monthly adjustment amounts (IRMAA). An
IRMAA is added to the monthly medicare part B standard premium amount of
$170.10 for 2022 if the retiree's annual federal tax return income two years
prior was over a certain threshold. The
IRMAA is assessed on retirees with 2020 federal tax return modified adjusted
gross income of greater than $91,000 and $182,000 for single and joint filers,
respectively. This threshold is adjusted
annually for inflation. The State's
approximate annual medicare part B premium reimbursement is $98 million of
which approximately $8.5 million is the IRMAA.
The Hawaii employer-union
health benefits trust fund estimates elimination of reimbursement of IRMAA for
new hires on or after July 1, 2023, will reduce future state annual required
contributions by $400 million over a thirty-year period. Current retirees; vested, terminated
employees; and current employees will not be impacted by this Act.
SECTION 2. Section 87A-23,
Hawaii Revised Statutes, is amended to read as follows:
"§87A-23 Health
benefits plan supplemental to medicare. The
board shall establish a health benefits plan, which takes into account benefits
available to an employee-beneficiary and spouse under medicare, subject to the
following conditions:
(1) There shall be no duplication of benefits payable under medicare. The plan under this section, which shall be secondary to medicare, when combined with medicare and any other plan to which the health benefits plan is subordinate under the National Association of Insurance Commissioners' coordination of benefit rules, shall provide benefits that approximate those provided to a similarly situated beneficiary not eligible for medicare;
(2) The State, through the department of budget and finance, and the counties,
through their respective departments of finance, shall pay to the fund a contribution
equal to an amount not less than the medicare part B premium, excluding medicare
income related monthly adjustment amounts for retired employees hired after
June 30, 2023, and their spouses, for each of the following who are enrolled
in the medicare part B medical insurance plan:
(A) an employee-beneficiary who is a retired employee, (B) an employee-beneficiary's
spouse while the employee-beneficiary is living, and (C) an employee-beneficiary's
spouse, after the death of the employee-beneficiary, if the spouse qualifies as
an employee-beneficiary. For purposes of
this section, a "retired employee" means retired members of the employees'
retirement system; county pension system; or a police, firefighters, or bandsmen
pension system of the State or a county as set forth in chapter 88. If the amount reimbursed by the fund under this
section is less than the actual cost of the medicare part B medical insurance plan,
excluding medicare income related monthly adjustment amounts for retired employees
hired after June 30,2023 and their spouses, due to an increase in the medicare
part B medical insurance plan rate, the fund shall reimburse each employee-beneficiary
and employee-beneficiary's spouse for the cost increase within thirty days of the
rate change. Each employee-beneficiary and
employee-beneficiary's spouse who becomes entitled to reimbursement from the fund
for medicare part B premiums after July 1, 2006, shall designate a financial institution
account into which the fund shall be authorized to deposit reimbursements. This method of payment may be waived by the fund
if another method is determined to be more appropriate;
(3) The benefits available
under this plan, when combined with benefits available under medicare or any other
coverage or plan to which this plan is subordinate under the National Association
of Insurance Commissioners' coordination of benefit rules, shall approximate the
benefits that would be provided to a similarly situated employee-beneficiary not
eligible for medicare;
(4) All employee-beneficiaries
or dependent-beneficiaries who are eligible to enroll in the medicare part B medical
insurance plan shall enroll in that plan as a condition of receiving contributions
and participating in benefits plans under this chapter. This paragraph shall apply to retired employees,
their spouses, and the surviving spouses of deceased retirees and employees killed
in the performance of duty; and
(5) The board shall determine
which of the employee-beneficiaries and dependent-beneficiaries, who are not enrolled
in the medicare part B medical insurance plan, may participate in the plans offered
by the fund."
SECTION 3.
This Act does not affect rights and duties that matured, penalties that
were incurred, and proceedings that were begun before its effective date.
SECTION 4. New
statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.
INTRODUCED BY: |
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BY REQUEST |
Report Title:
Hawaii Employer-Union Health Benefits Trust Fund Medicare Part B Premium Reimbursement
Description:
Amends section 87A-23, Hawaii Revised Statutes, to exclude medicare income related monthly adjustment amounts reimbursement by the State and counties for retired employees hired after June 30, 2023, and their spouses.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.