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Legislature 2002


1 in 10 without
health insurance

Lawmakers are told that
medical coverage eludes some
120,000 residents in Hawaii


By Pat Omandam
pomandam@starbulletin.com

One out of 10 people in Hawaii, or about 120,000 people, did not have health care insurance before Sept. 11, a problem that has likely worsened since then as Hawaii slips farther from its former top ranking as the nation's health-care state.

Today, Hawaii is ranked 13th when it comes to the percentage of residents with health-care insurance. A statewide effort is under way to change that.

Members of the Hawaii Uninsured Project, a collaborative effort involving more than 100 local organizations, told the state Legislature's Labor and Health committees yesterday the number of medically uninsured people in Hawaii has been rising over the last five years.

Project officials said that in 2000, about 10.3 percent of the state's 1.2 million population was without health insurance, compared with 8.1 percent in 1996.

"The slippage will continue if remedial efforts are not engaged," said Linda Colburn, the project's community facilitator.

Colburn explained to the joint House-Senate panel that the rise in the uninsured was gradual and that a multitude of factors, including the struggling state economy, contributed to the problem.

Project officials said they are working on ways to address the problem and will likely propose legislation in upcoming sessions.

One of the key changes under discussion is amending the state Prepaid Health Care Act of 1974.

The law, intended to extend health-care coverage to most Hawaii residents, mandates employer contributions to employee health-care insurance for employees working more than 20 hours weekly.

Hawaii is the only state to require employer payments to medical-care insurance.

Nevertheless, a federal court struck down that law in 1977 after it ruled a federal law that banned state regulation of self-insured employers had precedence.

But in 1983, Hawaii's congressional delegation won an tightly written exemption to the federal Employee Retirement Income Security Act of 1974, thereby allowing Hawaii's Prepaid Health Care Act to proceed but freezing any major changes to it.

Today, legislators are worried amending it now may lead to a repeal of the state's federal exemption, opening the door to more people becoming uninsured.

Others, however, said the Prepaid Health Care Act needs to be changed to better address today's economic situation.

State Rep. Nobu Yonamine (D, Pacific Palisades) said the Legislature should not act in haste and that there needs to be a thorough review before any amendments take place.

Project participant William M. Kaneko, president of the Hawaii Institute for Public Affairs, responded that such discussion is already in two measures before the Legislature.

House Concurrent Resolution 29 and Senate Concurrent Resolution 29 both create a task force to study amending the PHCA and the possible effects the changes could have on the ERISA exemption.

"We are here ready to serve and provide information to you," Kaneko said.

Senate Labor Chairman Bob Nakata (D, Kaneohe) stressed it is important for state lawmakers to receive all the background information on the subject before "discussions get too heated."



Legislature Directory

Legislature Bills & Hawaii Revised Statutes

Testimony by email: testimony@capitol.hawaii.gov
Include in the email the committee name; bill number;
date, time and place of the hearing; and number of copies
(as listed on the hearing notice.) For more information,
see http://www.hawaii.gov/lrb/par
or call 587-0478.



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