Bill Text: HI SB1314 | 2023 | Regular Session | Introduced
Bill Title: Relating To The Hawaii Employer-union Health Benefits Trust Fund Spousal Medicare Part B Premium Reimbursement.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2023-06-01 - Act 040, 06/01/2023 (Gov. Msg. No. 1140). [SB1314 Detail]
Download: Hawaii-2023-SB1314-Introduced.html
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THE SENATE |
S.B. NO. |
1314 |
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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 SPOUSAL 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 spouses of
retirees hired after June 30, 2001.
Employers do not receive any benefit from enrollment of self only
retiree spouses in medicare part B since they do not contribute to the spouse's
premiums. The Hawaii employer-union
health benefits trust fund estimates elimination of medicare part B premium
reimbursement of spouses for new hires on or after July 1, 2023, will reduce
future state annual required contributions by $1.2 billion 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, 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) [employee-beneficiary's spouse] a spouse
of an employee-beneficiary hired prior to July 1, 2023, 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 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] spouse of an employee-beneficiary
hired prior to July 1, 2023, 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.
Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.
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INTRODUCED BY: |
_____________________________ |
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BY REQUEST |
Report Title:
Hawaii Employer-Union Health Benefits Trust Fund Spousal Medicare Part B Premium Reimbursement
Description:
Amends section 87A-23, Hawaii Revised Statutes, to exclude medicare reimbursement by the State and counties for the spouses of retired employees hired after June 30, 2023.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
